Hi all.

I just wanted to showcase 2 trades that I did today because I feel like they really show the importance of following rules and what can happen if you dont.

The first trade I took I bought near support. I would have cut my loss at 385. I rode the bounce up and scaled out of my position based on prior resistance, giving my winner a chance to run. It could have been very easy to get a little greedy and keep holding for a bigger win. But it's best to lock in gains when you have them, dont want to turn a winner into a loser.

Then, I took another trade, once again close to support. I was looking for a candle to make a new high, ideally I was hoping for a move back towards high of day which is where I would have sold. I set my stop loss for 394ish, the bottom of the pullback, this is once again a good risk/reward ratio. When the momentum didn't follow through, I was out of the trade. This really showcases the importance of cutting losses quickly because it could have been a lot worse as it tanked soon afterward.

 

Let me know what you think,

Thanks