Trade Summary
20121228
Long 1 YM 12937 +14
Long 1 NQ 2610.5, +4.0
Total YM +14
Total NQ +4.0
Weekly Trade Summary 20121228-20121224
Total ES +3.0
Total YM +30
Total NQ +7.5
Total TF +0.6
For the past two days, early TF bull leadership failed and acted like a distraction and a decoy to the ensuing bear collapse. So when price broke again sharply again today, there was a tremendous temptation to go with it and short the YM inflection level breakdown, like I should have done with the NQ yesterday in order to catch that bear price collapse. But today, the only contract making that inflection breakdown was the YM, and as a rule in the trade plan, I do not follow YM solo impulse leadership, in either direction it might be attempting to lead. That rule saved me today, and kept me from shorting into the decline. Yesterday, no such rule was there to forbid me shorting as the NQ was doing the leadership role and the YM and ES were there to accompanying the decline. So jumping on board the break today would have only compounded the error I made yesterday by NOT jumping on board. Rules are there to follow. They are in a trade plan for a purpose. The point is not to go which way you think the market is trying to go, but go which way the setup model tells you to enter, regardless of your appraisal at that moment. Stick to the rules. And if you're stop'd out with a loss while following your rules, embrace your losses. Learn to love your losses if they come from following your rules.
