Day 1 – 18 Nov 2016 : Entry
- Wave indicator is approaching the zero line. I took the risk to enter instead of waiting for it to cross the zero line.
- I use the sell 90% OTM Put method learnt from the PPI course attended.
- Need to take note on the crude oil inventory data that is coming out on 23 Nov 2016. Usually this data will swing the price. If by 22 Nov 2016 this trade is still not profitable, or indicator showing sign of price moving downwards, I will close the trade before the data comes out.
Day 1 – 18 Nov 2016 : Exit
- Less than 30min after entry, this trade already turned negative and the daily chart indicator seems to be more bearish than bullish.
- I took the decision to cut the loss while it is still small instead of waiting or hoping to recover the loss. This decision is also a training for myself to cut loss whenever the trade is not working and not to hope for anything.
- A losing trade, with a nett $67.74 loss.
- This trade also proved that it is important to wait for more confirmation. In this trade, only enter when today’s candle indicator closed above zero.