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Tuesday, October 29, 2024

 The lightbulb moment is that I need to use good management and risk control to trade properly. That means taking partial profits, moving trailing stops. Using hard risk and size rules. That coupled with entry guidelines and sound strategy is how I need to trade. Each of these parts are separate but work together and need to be trained. Where I have gotten into trouble last week was in poor trade management. Almost all those losing trades I could have made out okay on if I had managed the trade better. I also had poor strategy on the early trend gap open entry and poor tactics on the entry. You have to wait for those more meaningful "used gun" entries. Too much FOMO at work. 

Anyway, the market got caught short. Yesterday it opened higher and in a way all it did was bring the market into balance. In hindsight this should have been the yellow light for chasing long the gap higher. But the market closed in a 3 day balance at the lows. Well Europe took it higher overnight and now you have the potential of a break out higher. It is still in balance technically so beware of buying in the upper part of this balance as you leverage off intra day supports for longs. Keep your risk tight, your targets tight and trail your stops. Also play on the defensive when it comes to an intra day trend lower as well.  

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