Every trader always wants to show the winners but as Oliver Velez has said on many occasions "show me the losers, because the winners always take care of themselves". It is how a trader reacts to the losers that really measures a traders mastery. So today I'll show you my stop out in TGT which I had on my daily list as a gap continuation play. Price action in TGT was so strong this morning that It did not pull back until 10:25 am reversal time. I noticed the topping tail bar on huge volume and thought this might be a nice short back into the 20 ma. I usually don't trade with the moving averages up but I have tab charts hidden with the ma's so I can easily put them up in a second. Well, I found myself short @ 61.77 with my stop @ 62.10 when price retested .09 again before the price bar turned red and triggered my entry short. The next green bar tested the highs again but came up short @ 62 even. I thought, I was in the clear as the next bar tested 62.10 before going red. The next 5 minute bar broke the low but then bounced and closed green. It was all over then as price grinded it's way back up to take out my stop above .10 cents... Ouch! The main problem with my play was that TGT had been consolidating all of Thursday and most of Wednesday, price action was just breaking out again which makes it a poor choice for any climatic setup. I'll keep posting more losing trades so as to help myself and all of you who may learn from my mistakes, and besides, I'm sure there are a few readers that get sick of this guy, TraderHank, always showing off again, lol... Have a great weekend everyone!
PS Yes, I did finish the day even, up nicely for the week and month in both Equity and Forex trades...I had two nice shorts today in SBUX and JOY at the end of the day as the market sold off hard...
60 minute chart of TGT 02282014