Tuesday, May 7, 2013

SPX daily follow up

Getting closer to the upper trendline of the channel - watching for a low risk short there because a very tight stop can be employed.  Trading is NOT about certainties or being right all the time, trading is about taking low risk trades where you see an opportunity where your risk is small and the reward potential is high i.e. at least 1:3 risk/reward ratio.  If the SPX fails to stop at that trendline and you are stopped out, no big deal, that's trading, but you don't lose much because you took a short right at resistance.  

The S&P 500 is up 7.5 points today, it's getting close, let's see if it can tag it. 

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