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

I traded 9 times today–3 wins and 6 losses. Two of those losses were a full -1R and dumb plays where I chased a rally. I just throw money away. Luckily for me, I had a trade pay off big in CFC early today, and I finished up about +1% on the day (from a high water mark of +3.5%). I entered once for a loss and then the second trade paid off in spades. The chart of the CFC trade follows:

I went short premarket at 19.56 with a stop at 19.75, above the premarket high. After the open, we made it as high as 19.71, where I covered to avoid slippage on my stop. This happened to be just about the top tick. After more weakness, I went short again at 19.47, and got the break I was hoping for. I covered half at consolidation after the breakdown, and then covered the rest when we broke back above 18.80 where I had set a stop to protect profits. My stop was 0.10 from entry, so I pulled out +6.2R on this trade. My $ size was only 0.5% of my equity, so it only returned 3% though. Not all R’s are created equal.

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