Sept 29, 2010: A Perfect Trade in the E-Mini

We caught a beautiful bottom in the E-Mini S&Ps, using a somewhat tricky pattern to get long a single tick beneath what turned out to be the low of the day. This was done bottom fishing-style – i.e., without camouflage — because the set-up looked so enticing. The actual trade had been advised earlier that morning during a “trading room” session attended by more than 100 people. It was an hour later, during the weekly tutorial session, that we reviewed the trade and my rationale for using a 1.00-point stop-loss. (I’d dithered over using a two-tick stop (!) but eventually decided to go for, um, broke.) We also looked at Gold and Silver as usual, finding an additional reason to take seriously a 22.505 target for the December contract that I’d been drum-rolling for weeks.