Got my minor higher high this morning and then the wedge broke just as I have foreseen, so why am I not a happy camper? Maybe it is because SPY did not trigger any of the short signals, maybe because I don’t like the pattern of the sell and I think there is a very good chance of a reversal near the 60 min trigger line or maybe it’s just because I ate something that disagrees with me, at this point I have no idea so I will stick to the system and the daily battle plan, which leads me to mantra #2
Mantra #2 – Don’t trade your gut, Trade your system
Many a time you have ‘gut’ feelings about a trade or a stock, and although you may be right some of the times, following it in the long term will only lead you to losses. Your ‘gut’ feeling is not consistent and cannot be reproduced, and therefore is erratic and depends too much on luck. If you can reproduce it and articulate it into rules than you have a system that you can check and if profitable follow. This does not mean your system will produce 100% profitable trades (or even 51%) but if for some reason you chose a system and you think it works stick to it until you decide to change it.
If you’ve missed matra #1 you can find it here
Battle Plan for the 7/24/2013
60 min interval Short Entry below 168.82 on SPY
120 min interval Short Entry below 168.52 on SPY
* Stop loss lines should be triggered if there is an interval close above them (i.e. 60 min or 120 min ), they are published in the daily blog and updated during trading hours on twitter.
* Take profit lines should be triggered immediately when crossed, they are usually issued during the trading day on twitter.
* Entry signals should be triggered when crossed, but take into account that until there is a confirmation (i.e. close of the interval across the entry signal) , the signal can become a reversal signal.
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