(Continuing our occasional theme of "We all learn more when Lance screws up!" 🙂
There are two important considerations when trading against a clear trend…
- Are my entries in a wholesale price region?
- Is my trade management defensive?
These two considerations should be in the forefront of your mind, if you wish to preserve your account balance in the event that the trend fails to reverse.
Let's look at a couple of counter-trend trades from today's Hang Seng session.
There were a whole lot more trades. But that sample gives you an idea of what occurred. Some defensively scratched. Some stopped out for small losses. And some achieving small profits. But none carrying through to capture a large R-multiple trade.
So when trading counter-trend, remember these questions:
- Are my entries in a wholesale price region?
- Is my trade management defensive?
But here's an even better question that MUST come up. Hopefully during the session. But if not then it absolutely must be asked during the post-session review.
-
What was I doing trading counter-trend?
My post-session review did consider this question.
More to follow next week… 🙂
Lance Beggs