Home > Apprentice Trader Journals, Beginner education, Market Set Up > trading your pre planned ideas

trading your pre planned ideas

My plan today was a short bias on the markets and to sell stocks in my list that showed weakest on the daily charts, such as AK Steel (AKS) and Best Buy (BBY). Looking at Fridays trading, I planned two scenarios that I felt had high probabilities of playing out. The markets where either going to open weak and continue to sell off in which case I would short the 15 min ORB (open range break) or the markets would open with buying pressure and I would trade the first 15 min swing high, with the first profit target being the lows of the day; and possibly a break of those lows for continued selling momentum. As you can see from the price action the latter happened as the SPY in the first 45 min of trading tested the 15 min 20 period SMA which held as resistant creating a swing high, which gave us our first opportunity to short weak stocks.

Unfortunately I was not able to catch a good risk reward in AKS as the markets created the swing high, so I had to be patient and wait for a break of the lows around 13.07 as the next possible short; which unfolded for a nice momentum move down to the 12.80 area. In the afternoon BBY seemed to be the best short on my list in the lunch time consolidation below the morning lows. Even though price action did follow through to the downside in the late afternoon trading, you had to be quick on the keys and get a good entry to take advantage of the downward momentum.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: