Saturday, July 10, 2010

Need to exit another one: CRI

Exited for $8.30 per contract...this resulted in a minor loss of 10 cents per contract...However, here is where I messed this up. I didn't employ money management ideals in this trade. I was still well within my total risk tolerance. The 13 day EMA was breached however not confirmed, however this is not my primary indicator %R is and that was I did the right thing based on the indicator...but I hadn't reached my tolerated risk level on this trade (this means I got in at a great price). The 13 period EMA is really starting to become my favorite indicator...Over many of my trades I notice that if I use the 13 EMA as a stop with a confirmation bar requirement I could have saved myself some this case I would still be in this I would need a 2nd close above the high of the bar that closed over the 13 EMA on the daily...

Such is life.

So CRI was a retest that i enjoyed seeing paper profits of about $250 disappear on. That always sucks but as Tim Hilliard says, "you always leave hot dogs in the cooker."

This violated on the 4 hr before violating on the daily but because volume was soft I thought would wait for the daily chart signals. Plus actual capital loss wasn't that bad.

I will exit this Monday morning and update the post with actual numbers. Again on the daily the 13 EMA is not even close, but it has been breached on the 4hr...also on the 4hr the indicators are turning less bearish.




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