Today, I went long on FAZ the first time. The entry was almost perfect. But I left so much money on the table. Why? I chickened out. Here is the chart. What makes trading hard is that we will have to make almost everything aligned for a successful trade.
1: a good entry.
2: a good exit
4: willpower to stick to your plan(emotion control)
It was a text book set-up(a wedge) again. There are just so many patterns to trade. Check out the “Candle Sticks” and “Comprehensive” sections of my libray.
Here is the 5 min chart.
My entry was good, but not perfect. If I had waited a bit more, I would not have bought it on the head of that candle(upper shadow). Since this guy moves big and fast, we really do not have to fuss over a small spread like that. So the entry was very solid.
My exit was horrible. It was beyond the words. After it spiked by 2 percent, I started my trailing stop which took out of my stop. It was like a thief who stole my money and ran faster than anyone. See how big and fast it moved after shaking me out. The reason I started my trailing stop was because I chickened out. It was simple as that.
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