A more profitable day trading week

Even though the market opened 20 points up, I caught a move to the downside with an early short trade. I was targeting 37.5 points, but made just 28.75.  3 points were lost to unavoidable slippage, but 5.75 points were lost because I entered one fewer contracts than I should have in the trade. 

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As trade setup patterns develop, I constantly adjust the risk parameters which govern how many contracts to enter. I made a flurry of adjustments just before entering this trade, and neglected to update the order with the changed number of contracts. I’ve mentioned before that operational excellence is vitally important, and I fell down on this today. Otherwise, all my trades this week were performed correctly to plan.

After the trading blizzard last week where I entered no trades, market conditions have improved significantly. The key factor has been the decision by the exchange to double the trading limits, giving the contract room to trade naturally. I’ve had a trade each day, with three winners and two losers. There were three short trades and two longs, showing that market direction is not that relevant to a day trader. Profit for the week (before commissions) was 76 points (US$3,800).

 

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