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Thursday, September 29, 2011

IF YOUR PLAN DOESN'T WORK - PLAN AGAIN -

AS TRADERS WE CAN MOVE FAST – CHANGE AND ADAPT

Today was a challenging day…  Somewhat a big gap up… didn’t feel like buying.. didn’t feel like selling… I’m just been honest here… was lost… we had a decent game plan with some decent plays .. but I was just not feeling it. decided to wait for a pullback to go long. The market (DOW) pretty much wiped-out an almost 300 point rally…. (not that it means that much anymore)…

Here is what I posted around 2-30  in the live room.


So… We had a "NEW" Plan… it we made new lows in the QQQs. SIMPLE... We get another stop… if not… the risk reward will pay us handsomely..

We went straight to our play list. And found JBL pretty close to target for the shorts. In other words, at a place where we will be looking to cover IF we were short.

**  There was a good chance that after falling to the 18.00 zone and after two days of heavy selling.. maybe some shorts will take the opportunity to cash-in some money.

We decided to initiate a position (1/2 Size) at the first signal of strength on a 2 minute high (chart not shown)... the stop was less than 6 cents at entry. Once we had a “twin tower” formation or bullish reversal in the 5 minute we added full size to the position (second green arrow).  We also called a second entry over .34 zone but on the first try it failed to break with strength and on the second time we consider  it was already too late in the day so we decided not to add. 

SEE CHART BELOW:

Exit ½ at 18.40 areas and final close at 18.60 zone.  Average buy (18.06) average sell (18.50) initial stop 6 cents. Profit. 8Rs.

Always keep you watch list handy – and remember the market closes at 4-00 EST. If you miss the first move… no big deal… revisit your plan and create a different scenario!

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