20130116
Short 1 TF 879.3, -0.1
Short 1 TF 878.7, -0.6
Short 1 TF 880.2, -1.0
Short 2 TF 880.7, 880.7, +1.0, +0.8
Short 1 YM 13443, -0
Long 2 TF 878.6, 878.7, +0.5, +1.0
Short 1 NQ 2726.0, -1.25
Short 2 YM 13435, 13435, -4, -4
Short 1 TF 879.8, +0.7
Long 2 NQ 2724.5, 2724.75, +2.0, +2.0
Total YM -8
Total NQ +2.75
Total TF +2.3
Some challenging whipsaws in leadership in the early going. Any of these contracts can pull a surprising big swoon as they stretch out into an impulse. One level of resistance may give way and stop you out. Some would say never go back to a losing position. But that's what strategies with auto stop-loss placements are for. They allow you to take a moment and reassess the setup. In Serial Sequent, if the wave structure is still due a reversal, and the wave has simply blown through one number to get to the next, the trade should be reentered... assuming it's in your trade plan to have taken the trade in the first place. Floor traders may be more skilled at this than most of us, but it's something that everyone needs to get use to when trading futures. Stay focused. At any stage along the way, as waves gel out their new positions and fresh numbers of support or resistance are hit, be prepared to look at the market in a freeze frame of potential setup. Your opinion about where you think it's trying to go is not important. Instead, ask yourself the question "Is this a model in my trade plan?". If so, the Trader's job is to ignore the Accountant's qualms about the loss you just took, and ignore the Analyst who tempted into predictions, and trade what's in front of you. Be the plan. That's the Trader's role. He executes the plan as agreed to, even at moments of great trepidation or fresh losses. (see the free ebook at valhallafutures.com for more about the Trader, the Accountant and the Analyst's roles.)
