DOW

longterm_view wrote: This is where I get stuck with trading. (i know about the 3 contract rule, but i only do a £1 per point) (£3 per point is to much of a loss)

Traders advice please.

I entered at the breakout, sold at 16000 for profit.

Do I re-enter now? or wait for re-test? Am itching to get back in? Dont want to miss 600 odd points.

I could enter above 16030 for another breakout.

Help please.

hi LTV
when betting small positions like £1 a point you are at a disadvantage. You cant take any profits or be really greedy. The 3 contract rule is there to take out the emotion ..
with regards to the best level to go long now.......Thasts going to be a re-test of 15855...Thats the best level to go long.
You can try and re-enter on a breakout trade at 16030 but thats not the best level. Its a good level for a top up when your betting with the trend. The risk are more obviously as your entering at the resistance but if it does break then there is a good chance that it may fly.

good luck

if your itching to get back in then emotions have taken control...Not a good thing..
The dow is unforgiving so careful...

Remo,

Many thanks for your replies.

Perhaps I am doing it wrong. But to keep losses small (2% e.g.) I only go £1 per point)

But yes, profits are small, losses are small.

This is why I stopped trading for a long while, its so time consuming and when you add up all the profits, and take off losses (although small), you begin to wonder.

I have been looking again recently to trade more (after training cocker spaniel

Perhaps emotions are more severe when trading smaller amounts? Always chasing the profit??

Heres a 1 hour chart of the dow..
The sideways move dont look so bad on this time frame.Theres a flag formation on this and look at how the top of the flag is acting like a resistance. Perfect.

Hourly chart


dl.dropboxusercontent.com/u/4899609/dowhour20thnov.png



daily chart


dl.dropboxusercontent.com/u/4899609/dow20thnov1.png

The daily has currently 3 doji ..Indecision...Its waiting for some news event to propel this further hopefully and not down move

This back tested the channel yesterday ,almost perfectly.
Im kinda sad as had bigger position taken out due to stoploss but at the same time managed to buy new positions at a lower price thou not as many as i had initially.
We dont want the dow to finish below 15860 as that could signal a bull trap.
im hoping that it moves higher from hear...




dl.dropboxusercontent.com/u/4899609/dow21stnov.png

Some thing interesting..
I was going through IG and found that 82% of there clients who have positions on the Dow are Short...lol....poor sods...why would anyone be short ?? Obviously they don't use charts...
And 52% of the clients who have positions on the ftse100 are long..