April 7, Shorting Daily Res. SFY WTI

Short SFY  2.79
2.80 looks like resistance on daily will cover with 1 or 2 cents loss if trades above 2.80.

SFY  risk reward 

THE DAILY   speaks it all.. And most importantly the L2 with Time &Sales prints. This is hard to explain but need a lot of observation . But first is finding the right inflection levels to trade off of them with limited risk. I do not put hard stops because if I did I'd be stopped out on SFY already. The prints at 7.82 were not convincing to get out of this short. Maybe later if it gains real buying I will take a small loss.  I'm ready to lose few pennies to make 10 c or more.

I had to cover with 4 cents loss 2.83 2.84. No reason to stay short for now. It may get much higher. I will not be surprised if it gets to 3.40 area these days . Admitting to be wrong is part of trading.

                                                                 SFY taking the loss

SFY update .
I did not take this short simply was not focused enough. But the idea was right on the money , went higher, squeezed some more, showed weakness , and the sell off was right  there for a 30 cents nice drop. Still worth taking a note to re-affirm my confidence in what I do.

                                                               SFY the short I did not take


WTI 
Many times I ask myself this: if I am waiting to get to 6.5 that means I could go long? Well if I go long here 6.25 and expect to make it to 6.50 and I do this with most of the other similar candidates, I will lose on maybe more then 50% of the time. Simply because  not all of them, will get there where  I like to short them. But those few that will get there , will be brought there by longs who will be glad to take their gains. And there will be me shorting with them selling taking their profits. It is that simple. Now do I have the patience to really wait for WTI to get to 6.50 ? that is the hardest part. So writing plans, taking photos,  drawing lines helps me to sit on my hands and to be patient. It works for me and helps people who like to read what I am sharing. So be patient it does pay off.

WTI in waiting 

WTI the short 6.34 covered 6.22 and the best part is the leaving money at the table . Ahhh well. 

WTI the short and the cover