Risk and Reward is the name of the game
Today’s trade was a beautiful example of a BULL market.
I say that with great respect for the power and brilliance of the PPT.
I am more conservative than most traders, for a number of reasons. Mostly because I have witnessed their blatant manipulations too many times.
I am a technical trader, and totally ignore the talking heads on CNBC et al.
We had 57 resistance premarket, entry at 55.5, with a stop at 59. Our targets were half gap, gap, 44.63 pivot, and 42. We had a T1 target at 39, and felt that 37 to 39 was support.
We did not expect the strength of the bounce to carry all the way back to the double top area; I thought 47, 49, and 52 area after the 45 was broken.
We will not guess every wiggle correctly; I like a “snow fence” concept like Alexander Elder suggests; I am simply not good enough to guess the exact turning points.
Afternoons are generally more complex than the mornings. Conservative traders should avoid lunchtime trading, as statistical analyses shows.
I recommended a rather challenging trading book to traders in my room from my library, written by J. M. Hurst. If you want to learn more about the markets, this is a place to continue your studies if you are an advanced student.