I had a very good discussion with Ziad over the weekend, which made me more conscious about risk/reward and stops. Going forward, I'll be risking 1% on each trade. Size will be calculated based on the dollar amount being risked, so setups with wider stops will have lower size, and tighter stops will have larger size. Size will be adjusted as the account grows/shrinks.
Regarding today's market action, I'm still surprised that ES broke 860; unbelievable! I mean, is it really good news that Citi needs to be bailed out by the Govt, and Govt is obliging to their request in order to "save the system"? Doesn't this just further show how much of a mess we're really in? 869 was previous week's high, so I was shorting low-mid 860s which turned out pretty good. On the negative side, I definitely let my bias get in the way and could not get myself to go long at any point during the day. I need to be able to put my bias aside and trade in the now.
Market Structure Chart (5-min)
