One thing I’ve learned…. If you log on with 4 hours of trade left and you see DOW -300 points in the red and still dropping towards -400 points it virtually always closes near the days low (except when a capitulation low has been printed) so I rarely even consider long positions.
Today I shorted the early evening rebound and it cost me dear, stopping me out right at the height of the rebound.
After that being little more risk averse, I took 3 further trades and put stops at break-even as soon as they were beyond +25 to +30 in profit. 2 of them stopped out at break-even – each one at the height of the retraces – yet between them they’d have recovered the earlier loss had I taken profits.
The 3rd one is from 17,457 and was showing +70 five minutes before the close….. As I type futures have just re-opened, spiked up and taken that one out too.