Friday usually = low volume slow day, but not today! Bulls were in control this morning. Since I usually use Friday as a research day to analyze my week, I trade very light on Fridays. I had one trade which met target at $200 and I ended live trading for the day. I will take the rest of the day to go over mistakes made at the beginning of the week and positive notes taken from wed, thurs, and today. In general, mon and tues were days that I over-traded and traded in non-trading environments according to my system. A BIG positive for this week is applying the 4 trade rule. The benefit of it is invaluable. It helped me be very selective about my trades and pick only the highest quality of entries. Here is the chart of the entry that I took and the exit level:
You want to apply the following rule to your trading, it is a concept developed my Richard Donchian back in 1933, but it still holds true! The simplest of rules are always the best. I found that this easy technical guide will help you profit in the markets and avoid taking counter general trend trades which result in losses. The thinking behind my trade: current consolidation range, expect a move to the upside (continuing the bigger picture trend).
A move followed by a sideways range often precedes another move of almost equal extent in the same direction as the original move. Generally, when the second move from the sideways range has run its course, a counter move approaching the sideways range may be expected.
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