Today, I shorted the Hang Seng @ 17,428, which I believed should be a picture-perfect trade.Profit target: 17,220 (208pts reward)
Stop-loss: 17,531 (103pts loss)
Risk/reward ratio: 1 to 2
Reasons for trade
1) K2P sell call enhanced by my RS+1 pattern
2) Created a new 52-week high but closed lower on 4th Sept
3) Today broke 4th Sept's day low with strong momentum
4) Lots of commited sellers detected across various levels in today's session
5) Well-balanced risk-reward ratio
I believe this trade should turn out well :)
PS: For Trading Mastermind Programme people, pls look out for potential KOSPI trade tomorrow
6 comments:
Hmm, i heard u got out your position early than the target 220 so your risk and reward is wrong in term of 2:1...??? Broken your own rules...???
Yes, I took profit @ 17,262 at 1132hrs Singapore time.
If you look at that 5min bar, it's an emotional breakout. When retailers jumped in to sell, I usually take profit :)
At the same time, I entered another short in KOSPI and I need to free up margin for holding my KOSPI overnight.
To a certain extent, you are RIGHT as I did take my profit earlier. My take is that although I set a target, it's only a reference level. The market has no obligation to hit that level. If everytime can hit my predicted level, wouldn't it nice?
In fact, whether or not HK hits my target is no big deal. A trade is just a trade. I look forward to the next trade :)
Now is about 3.20pm Hang Seng Low is 17,185 do u feel the pain of not following your own target 17,220. hmm... Retailer??? Mix up with the ratio of Risk and Reward???
As a matter of Fact, it's big deal to me as you did not keep to your risk and reward ratio. In the long term i think i will be very fast stop trading if i keep following your call...my one cent worth of Maths.
I do not feel the pinch or pain when market reached 17,220. At the moment I made up my decision to take profit, the trade ends there. No point talking about 'could have', 'should have', 'aiyah' ...
On the issue on risk/reward, to me, I have a different view on that. Thks for reminding, will share it in another post.
My only objective for sharing trades is to reiterate the confidence of my fellow K2P graduates who entered this call based on the K2P system.
Lastly, if you are uncomfortable with my trades, pls do not follow. Let me share a quote from Ed Seykota "Everyone gets what they want of the markets"
Firstly your ratio is wrong in term of 2:1 i will watch what you are going to post for that answer.
If you need to clear your Hang Seng to free up your margin for holding overnight KOSPI position.
Meaning you are operating under capitalisation, i thought you earn enough margin from your Mastery Programme.
Lastly, you did not get what you want as targeted at 17,220 instead got it out at 17,262. Different of 42 points. Ratio drop to become about 1 : 1.5 only. Agree?
Maybe cut loss point is easier to get it right. I get what i want from you at least. Learning more....from it...Good night!
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