11 Points Profit Today

Today was a classic example of where fear can paralyse.  However I did eventually go long in the market, having watched it go up a fair way already.  I took 11 points, but happy with that.  Below is a 10 minute chart of the Dow Jones.  At Point A we see a shakeout - a lovely sign of strength.  I would normally go long on a shakeout but this was at the market open so I was cautious - only to watch the market ascend.  Point B is (in hindsight) no supply, but I'm never confident with these bars that have wide spreads down, closing on the low.  I would have preferred a narrow bar, closing on the low, with low volume.  At Point C I saw a test in a rising market, and a clear sign of strength.  This was also visible in the 5 minute chart (which I have posted below the 10 minute chart) at Point A.  I went long at this point and took 11 points profit as I saw the price approaching a resistance level (marked Point D on the 10 minute chart).  At the time of writing the market has since gone sideways for a long time, and at this point (6pm) has just penetrated that resistance level.  So for my own confidence (and time!) I was right to exit at this point.

22 Points Profit Today

It was uncertain on the open of the market today.  There were a few News items, and one half an hour after the market open, so I was cautious and kept away.  Even after that it was not certain, but I was convinced there was weakness, with the high volume on up-bars created by the high volume of trades at the market open.  Below you will see a 10 minute chart of the Dow Jones.  Previous to Point A you will see high volume, but it's not excessive, hence my hesitation.  However the market tends to go sideways after its initial move up, and does not make new highs.  Point A marks an Upthrust, and a sign of weakness.  On seeing this I went short (at its close), and followed the market down 22 points at which point I took my profit.  It would have been great to stay in longer but I prefer to take my profit, especially as I wasn't too sure as to the market's intentions.

Back to it gently

Finally ........ back to trading, after quite a long break, although I haven't been far away, and have been following what has been happening in the markets, but have been very busy with other commitments that have required time and focus.  Trading in itself takes time and focus and if you haven't got that time then don't do it.  It's really easy to lose money if you are not concentrating.

Today I took 12 points profit but happy with that as I'm just getting back into it.  There is a 5 minute chart of the Dow Jones below.  Upon the market open the price fell and, on the larger (1 and 2 hour) timeframes it was clear some buying had come in, ie. high volume on down-bars.  The market responded upwards.  Upon seeing the turn around I was looking out for some confirmation, ie. a test or no supply, to enter.  This I found on the 5 minute chart at Point A.  I stayed with it until Point B at which point I exited the trade.  My reason for this was that to the left there was a possible area of resistance, and with it being my first trade I wanted to get out with a profit in order to be in the right frame of mind for tomorrow and beyond.  Of course, the market later continued up.  BUT ..... we do not kick ourselves upon discovering this - we are happy with our profit.  We know that with time and continued consistent success we will have confidence to stay in and take greater profits.  It is CONSISTENCY that is the winning word in trading.  All the losers win, lose, win, lose, win, lose.  The winners WIN, but CONSISTENTLY.