Slippage

People talk about slippage all the time in the forums and blogs…Slippage is when you place an order, but it isn’t filled until someone accepts the order, the catch being at the price they want to pay, not the price your offering.

I am experiencing slippage in my own life.  I have offered a trade – longer term, less stressful, higher returns for less risk for excitement of trading every swing, adrenaline rush and blood pumping through my vanes.  I feel as though my rational thought gives way to my need for adventure.  I have great days, then I have worse days (usually Friday).  I’ll build up a 12% ROI through Thursday, and then loose half of the profit on Friday.  While I wish I could tell you why or how I do this, I can only speculate as to what causes this behavior – fear.

Fear that I won’t make my quota, fear the market will turn on me and clean me out, fear the system I am trading with isn’t going to go well for long, or fear of any bump in the market.  I have the ability to put my fear aside for short periods of time and this is when I feel like I trade the best – whether or not my win % is higher, I haven’t crunched the numbers, but I can FEEL the market better.  What I have to do is learn to walk away from trading when I start to feel the fear of everything creep back into my life.  I also have to work on holding that fear back OR use it constructively but I am learning everyday and will continue to learn for the rest of my life.

As for my trading strategy, it hasn’t changed much since I started this blog.  I am biased to the short side of E/U, always looking for the best place to get a short order in.  Currently I have a “let’s give it a stab” trade in and am starting to regret doing it, I could have waited for a better opportunity but I think my TS will forgive me and let it ride.

My opinion on what we will see unfold is as follows. In the EXTREME long term (Monthly charts) we are trending up and are currently in a pullback.  What I trade are the Daily and 4H charts and in both of them, we are in a downtrend.  As a side note, the Weekly is neutral.  I think we have some room to go before I will start to think of a change in the Daily trend, I have been touting 2150 as the 50% fib retrace on the monthly chart and I think that this is still valid.  We have strong resistance just about at every single whole number until we reach 2300 – we break that, watch out.  I have no time frame for when this might happen, it could be tomorrow, it could be August or next year, in any case I will wait for pull backs to 2900, 3000, 3100 and beyond and short them every time until we get there.  I will position myself to take the largest chunk out of this ride down as I can, but will also cut my losses if I need to.

Now you know my plan, I hope I have the persistence and courage to stick to it. I am would love to hear what people think, I want to know if you think I am way off the mark or if people see what I am seeing.  Drop me a comment or send me an email – let me know you stopped by.

Don’t forget to visit everyone on the blogroll – they are the reason I am here.

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