Crude Oil Trading Don't Stand So Close

Crude Oil Trading Don’t Stand So Close

Thursday: May 21st, 2015

Crude Oil Trading Don’t Stand So Close

CLPORT Method:

Short Trade at 5992 at 8:10AM CST. Hit Stop Loss at 6002 at 8:13AM CST.

Next Trade? I am NOT comfortable going into the highs without a retracement of price action. I am on the sidelines for now after first trading loss. I want to see a tie breaker in volume to get me excited to take on a trade now.

Here is what I saw … I missed the Short Entry when my computer went down due to a power loss. I didn’t panic and waited for the next signal. The short would have been a breakeven trade at best, since it was one tick away from 1P on the trade.

Short Trade Setup:

Long Trade Setup:

Market Slows down … and I move a little too close to market on retracement.

2P Profit Target Hit: I was a little too close to market on my trade management today. This is what I call the Woulda, Shoulda, Coulda trade from this point forward. It is basically what you call opportunity cost you may or may not have studied.

Market continues its ascension to 3P before any significant retracement. This is normally a target I like to gun for on a Thursday! The W/S/C part of this trade was the missed opportunity of $430 profit on the trade.

Here is where the runner would capture this … but … being limited to 1 contract trading I am basically learning trade management all over again.

Don’t get me wrong I am happy I went one for one and made more on the win than what I was willing to risk on the loss. This is my basic trading rule being played out in real time. But I am just a little frustrated with myself as I am a perfectionist when it comes to being a trader.

I can’t say that about much of my life … but … the search or pursuit of excellence is a core belief center for me as a trader.

On hindsight, w/s/c part of the trade … there was a minor support price action on the chart right here … I ignored … don’t do this again on one contract trading!!

Kind Regards, Good Trading and God Bless,

David M. Knight

P.S. Today, I was reminded about Don’t Stand SO Close to the Market when you are trading!


About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.