One And Done Trading: CL

Trading Perspective

Today I felt like I regained my trading perspective, emotionally I feel I have regained confidence in my technical analysis to the point, I do not feel the need to chase the market, not for out of fear of being wrong, but by acknowledging that the market is choppy. Choppy conditions make for tough trading. If the trading day appears to be choppy just the slightest, I am mentally training myself to move on with my day without risking any capital.

The chart below is an example of how my money management works. I sold CL 47.85, began with 10pt stop, as the trade began to work in my favor, I quickly moved my stop to a profitable position, also referred to as a “profit stop”. A profit stop allows your position to work while simultaneously locking in a profit.

In the below CL chart below, my profit stop locked in only a profit of fifteen bucks… take a look at how far the market when against my original short of 47.85. [Pause]

As I was typing out my thoughts, CL just sh*t the bed for reasons I have no clue to as why? I quickly checked CNN to see if North Korea fired a missile or something…CNBC article [Oil Prices Fall]

U.S. crude oil refinery inputs averaged about 17.2 million barrels per day during the week ending April 28, 2017, 108,000 barrels per day less than the previous week’s average. Refineries operated at 93.3% of their operable capacity last week. Gasoline production increased last week, averaging 9.8 million barrels per day. Distillate fuel production increased last week, averaging 5.1 million barrels per day.

Full report here

Wow!

Trading with CL is not for the timid!!! I’m foolish enough to do it anyway. Sucks for the traders who just bought the high and did not have a stop order in play.

Lesson learned that I did not have to pay big $$$ for, avoid trading CL on EIA report days. FYI, today is a FOMC day as well.

Lot Size: 1
CL: +$15