Wednesday  25 June 2014

Stopped out of position at price, 20.80

23 Jun – Buy 20.96
25 Jun – Sell 20.80

Loss = 16 cents, $160 plus $15 commission per contract

Even what appears as a higher probability trade potential
does not always work out, and that is simply a part of doing
business in the futures markets.

The initial read of a weak reaction should lead to higher prices
was a correct one.  The failed rally and slightly lower close by
day’s end was the market announcing the trade may not work
out, and the stopout was confirmation.

That was the conclusion drawn, by the close, but the trade was
maintained for the rules of engagement did not say to exit.  A
great example of a trade simply not working.

The fact that the risk was kept small speaks to the validity of
the initial buy signal and the attendant clarity of where to
exit should it not workout.


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