A Rollercoaster Friday: Navigating Wins and Losses in the Trading Arena

Friday (12/8) was a whirlwind of trading activity, a day filled with multiple trades that tested both my strategy and resilience in the market. Let's dive into the intricacies of each trade, the highs of successful plays, and the humbling moments of losses.

Trade 1: Morning Shorts and Unforeseen Blasts

The day kicked off with a short trade, targeting the 200MA on the 5-minute chart. As I went short on the retest of the 40MA, PPM 1, 2, and 3 painted a complex picture with various slopes and positions relative to their derivatives. Unfortunately, the trade took an unexpected turn when price surged past 4590, triggering a loss.

Trade 2: Buying the Dip and Cashing in on Parabolic Moves

Undeterred, I saw an opportunity when PPM 3 projected a positive slope and was above both of its derivatives. Buying the dip at 4587 paid off as price went parabolic, hitting profits around R1 at 4596. Notice how all 3 of the PPMs were above both of their derivatives and a positive slope. Although a successful trade, a twinge of fear led me to exit prematurely as PPM 1 hinted at a potential rollover and test of its positive slope.


Trade 3: Attempting to Catch the Bounce off of the 21MA

The third trade aimed to catch a bounce off the 21MA on the 5-minute chart at 4599. Despite PPM 1 being through both derivatives, PPM 2 and 3 were slightly testing their first derivative, but holding their positive slope. The play turned sour as price failed to hold the 21MA, hitting my tight stop for a loss. The subsequent price action confirmed the wisdom of the stop, with the market leaking lower.



Trade 4: Shorting Under Moving Averages

The final trade of the day involved shorting under moving averages at 4586.75, guided by PPM 1 and 2 under both derivatives and heading for a negative slope. PPM 3's attempt to test its positive slope added to the conviction. However, a midday spike triggered my stop loss, leading to the realization that even with PPM 1 and 2 under derivatives, PPM 3's bounce off the positive slope hinted at an impending rally back to its moving averages.


Reflecting on Lessons and Moving Forward

Friday's trading expedition was a rollercoaster of wins and losses, underscoring the importance of adaptability and strategic exits. While some trades ended in profit, the fear of potential reversals influenced decisions, leading to missed opportunities.

As I reflect on the day's trades, the lesson is clear: striking a balance between confidence and caution is key. The market's unpredictable nature demands constant reassessment and a willingness to adapt strategies as new information unfolds.

Join me on this continuous journey of refining trading skills and learning from both successes and setbacks. Until then, may your trades be profitable, and the lessons learned pave the way for future triumphs in the ever-evolving world of finance.


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