Wednesday, March 7, 2012

A Slip Up That Paid Off

I had a moment of weakness while trading today. The 1-hour chart was looking a little too horizontal in its price movement, and the RSI stayed in the 40 to 60 range without any signs of a breakout.
After my successful comeback, it irked me to no end to sit around waiting for the next move.
So I did the unthinkable. I went against my drill sergeant alter ego and switched to a 10-minute time frame.
I felt like a contestant on The Biggest Loser who gets up in the middle of the night to binge eat.
It was all so scandalously indulgent!
The worst part though is not that I cheated but that I was rewarded for my deviant behavior. I posted a $400 gain in less than an hour. What could such an act and its glorious consequence mean in the greater scheme of things? I don't know.
Note to self: Patience is a skill I have yet to master.
In spite of the renegade boost to my balance, I decided against indulging again. Why press my luck. I reverted to my old ways of trading. The 1-hour timeframe, as of March 7, 9:12 p.m. (PST), looks like it could burst open upward. I put in a buy order a few hours ago and have resisted taking a $300+ profit twice because I trust the price will move higher.
It's hard to tell as of now if that was a good decision though. I'm concerned that the price isn't moving fast enough upward. There's no momentum at all right, and it switches between two values a little too often for my comfort. It's like a car that keeps stalling on a steep grade uphill.
It might be time for a new rule. Perhaps a wishy washy outlook on a trade should warrant a quick sell. If the price does burst higher, in this case, there's still time for me to reenter and post another gain.
That's really not what I want to do though. I want to switch to a shorter timeframe to see if there are any signs there indicating a strong upward movement.
Would that be going against the drill sargeant? Even if I just snuck a peak? (By the way, I apologize for the constant misspelling of seargeant. I'm not sure how to spell it and am switching between three variations.)
Oh, who am I kidding. It would still feel like cheating. And I don't want to binge trade twice in one day.
The best option I can think of would be to put my parachutes in place and look away from the charts--disengage in the "what if" game playing.
That's probably what the drill seargeant would like me to do.

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