Since I am in the Southern Hemisphere (Perth, Australia) I can sometimes make myself available during this time. That is after I finish the day job (Engineer) and assist with feeding our three boys.
So that said I took a short position at around the 1040 resistance on stochastic divergence - my concern was the ascending wedge that was forming and therefore I nervously took 2 ticks - where was my conviction in this high probability set-up? The market stretched some 2+ points south in the first push down!
I then settled down half an hour prior to the morning US cash session at 10pm (AWST) with my expectations of early session oscillations around previous day support/resistance. With my bias and plan set in my mind - position long as ES approaches the 1033 support area - I prepared myself.
This trader is sometimes off the mark a little on a Monday - today was no exception. I positioned my first contract at 1037.5 on stochastic divergence - a little too eagerly given my pre-market plan. However, with the trade premise still intact I stretched my stop below the 1033 support area and scaled in 4 more contracts as price held around 1033.
Talk about rusty for a Monday! The high probability set-up didn't fail me and headed north. I took 3 contracts off the table prematurely +2 ticks. The remaining 2 at +1 point. And what happened next? The market spiked up to the previous resistance at around 1040.
My lesson today - hold conviction in the ES high probability set-ups:-
- scale in at predefined bias - support/resistance levels.
- hang on for 1.5 to 2 point clip on first set of contracts
- let remaining position run to predefined support/resistance or on fading price action
Yes it was a positive day +$160 in the account but on days like these it is essential to push hard - lost opportunity? yes - how much? probably +$500.
I retired weary at around midnight (local time) satisfied that I picked the bias but frustrated I didn't maximise the opportunities.
Until tomorrow.
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