20140129
Short 2 NQ 3480.75, 3483.5, +2.0, +4.0
Short 2 NQ 3481.0, 3482.25, -1.5, +2.0
Short 2 YM 15773, 15775, -2, -5
Short 1 TF 1129.5, +1.5
Long 2 TF 1125.7, 1125.7, +0.5, -0.2
Long 2 NQ 3469.75, 3468.0, +2.0, +4.0
Long 2 TF 1124.9, 1124.6, +3.0, +0.5
PM Trades
Long 1 YM 15713, -7
Long 1 YM 15685, +30
Total NQ +12.5
Total YM +16
Total TF +5.3
Huge gap down openings can cause a reaction to price production, but even more than that, it can cause a reaction in your head that influences or even inhibits the execution of your normal Trade Plan. Don't let big gaps inhibit the execution of your Trade Plan. If your Trade Plan does not accommodate such things, then maybe there's some tweaking to do in the Plan. Stay focused. Concentrate on whether the specifics of the Entry Model have appeared. If so, pull the trigger. Forget about which way the market is supposed to go after a gap or after this or that news. Stay disciplined, and remember the Douglas Premise: "Most of the money that is lost in the markets is lost by trader who thought they knew which way the market was supposed to go." Once you understand that, the two Corollaries to the Premise will make perfect sense, and come to the aid of your Trade Plan construction. Read the book Pivot's, Patterns and Intraday Swing Trades for those corollaries.
Addendum: The FOMC is always a good bet for volatility, and although my trade plan calls usually for pre-news setups, none occurred that fulfilled Trade Entry requirements. But there were several post-news models that did appear. I only caught one for a 'taste', but sometimes flat is a good position too.
