This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I couldn’t hold on as long as I would have liked, but I made a few bucks. Yesterday, I stuck to my plan, and took two large losses playing the harami setup. It made me think about the reward versus the risk I was taking.
Last night I started searching for different articles on trading breakouts. My reasoning is that if I’m going to take such large risks (.30 to .40 on each oil contract), then I need to have the opportunity for larger gains - thus trade breakouts. However, in the past, I haven’t faired so well.
Here is the link of the chat transcript that I found. Anyway, I took one trade. While I was waiting for it to setup, I surfed the net. Its easily recognizable, and only time will tell how profitable it is.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
September 27th, 2007 at 5:47 pm
Nice trade! Interesting link, too. I’ll have to look at that in more depth. I bet this works better in highly liquid, high volume markets than otherwise.
September 28th, 2007 at 8:24 am
Hey, look at this chart of NYX:
There’s your 4th hump breakout.
September 28th, 2007 at 8:26 am
Doh. Trying again with the chart: http://www.movethemarkets.com/blog/wp-content/uploads/2007/09/nyx-candle-three-months_1d-2007-09-28-082156.GIF
September 28th, 2007 at 9:34 am
prospectus: that was a textbook setup…nice!
September 28th, 2007 at 3:42 pm
Too bad I didn’t trade it, but it was a nice setup