04/09/2014

Initial movement – Down, Gap – down

Market taught a few lessons, the hard way.

1) Did not mark IRL, as it was between 2 important DPs and hence thought that it is irrelevant. Paid with SL, after taking BOF BRN Long. Lesson learnt. -8 points. If  IRL was marked, would have skipped the trade due to want of space or made a quicker exit.

2) Thought that a BW has been formed around BRN between IRL and LOD. That was another serious mistake of the day. Should have waited till 2 attempts are made at both range extremes of the perceived BW.  Shorted BOF of IRL,, ignoring the space with BRN hoping that price will go past BRN and touch LOD. Stopped out. -8 points.

With better reading of price action, would have expected a 2 legged BOF, here.

3) Took another BOF short at IRL, after seeing the 2 legged BOF, IGNORING the space with BRN, hoping that price will reach LOD.  TSL hit. No loss, No gain.

4) Took BOF BRN Long. The penetration was good and the trading session was about to end. Expected this to move well. When IRL resisted and a deep PB was seen, exited. -2.5 points.  But price  moved well after dropping me pretty early.

5) Price didn't test BRN after stopping me out in the previous trade and started moving up. Looked like PP set up. Thought of going Long above the recent swing high. Hesitated and missed the move of the day.