ETF SWING & DAY TRADING

[Little Chico]

Catching the Wave!

Short ER2 @ 752.30
Cover @ 747 = 53 ticks (a brief counter trend developed)

Short ER2 @ 745
Cover 2 737.80 = 74 ticks (@ support)

127 ticks total.

I now realize how important it is to look at the larger trend before entering a trade on the 5" chart. I determined that the daily trend was bearish, based on the 60" chart, and then went short when 60" chart and 5" chart agreed. With both trades, I set a 30 tick stop, but came nowhere close to having the stop hit. Trading with the larger trend is a little like catching a wave on a California beach. On the other hand, trading against the larger trend is like swimming upstream against the tide. Since the hourly chart is likely to predict the market direction for the day, I resolved to stay with the trend and not to go long, unless the hourly chart changed, which it didn't. I ignored two counter trends, and went short when the two charts were in synch. In retrospect, I could have stayed short all day long.

Chico