I experienced a minor disturbance today, of a financial nature, it made me reflect on the value of money.
Between 6-7pm I traded Crude oil on the short side, nothing special about that, just that this is not a market I have traded much in the past. Today looked like a reversal day, possible bull trap above overhead resistance on the daily chart. A quick $2 decline was caught on the downside, but held on a little too long to settle for a £119 gain in around 10 minutes. This reminded me how unpleasant day trading is – watching a price chart, stress, no thanks. Considering there was only £170 on margin at the time I suppose this was sailing a bit close to the wind, but, there’s plenty more in reserves if needed. Keeping a small balance keeps you focussed on cutting losses.
Now, what if, say, Crude sells off back to $100ish? Would corn and sugar sell off? Corn looks overcooked, outsize wide ranging day today. Short sell order below the market to catch sudden fall off in price, could be a fast move.
Nikkei wants to go higher in next day or two, next week or two, maybe fast move down. Waiting.
‘Non-linearity’ I’ll develop this soon.
