OMGWTFBIDU

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I held a tiny VMW position overnight yesterday. I sold it when we got back to my entry point near yesterday’s close (88.50). Then it took off to 92 today! Doh.

I tried to short MDCO as a breakdown of the 5 min OR. I thought it would fill the gap to 18.60. When it bounced off the OR low again, I covered at 19.36 for -0.4R since I had been wrong for so long. Then, MDCO dropped! So I watched, until I revenge traded it at 19. I got an other drop, but got stopped out for breakeven. If I had held to my initial stop on my first trade, I would have made +0.7R.

Then I threw away -1R trying to go long on RDN, which had steadily trended up to the point I top-ticked it and made it correct ;) In retrospect, it was a terrible entry and I never should have taken it. It was overextended on every time frame and near the upper channel line:

For the final straw I shorted BIDU as it seemed to be topping. I thought 307 would be overhead resistance, but I was quickly stopped out for a -1.5R loss. I said on Wallstreak “I am done”. Down -2.5% for the day, with revenge trades and dumb setups. Really poor trading.

I kept watching BIDU, and I noted that if I had taken an OR breakout trade on the 15 min, I would have been stopped out by the long lower tail on the 12:45 bar. Figuring that since my intuition is often so wrong, and any traders like me would have been flushed out by that tail, I decided to go long with a stop back at the low of the 12:45 bar. BIDU tore up after that, squeezing the life out of the shorts (of which I had been one no more than an hour earlier). It was hard to hold on and risk giving back the profit during the partial retraces! When we hit the 119% fib extension I took a partial. I had to go out for a meeting, so I sold the rest at the 119% fib on a retrace. I thought I’d miss the ultimate push up (and I would have) so I just booked the gain. BIDU topped out at 323(!), and earlier in the day I thought the 138% fib at 318 would be a stretch!

I made +4R on the trade and completely offset my losses from this morning and then 0.5% more besides. I got lucky. too bad the rest of my day was full of bonehead trades that had to be offset. Thanks to the Wallstreak crowd for moral support and letting me bounce ideas off of them. They are a great group of expert and helpful traders.

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com