$IOT 0.45 Noisy

Notable posts

• @ohiain bullish 78 eng

  I don't need every trade to work... I just NEED my risk to stay small when it doesn't work. I took a small L today, so here's a full breakdown from the AM session -- learn from me: This morning I took a small starter in $IOT. The idea was pretty straightforward... $IGV and the overall market started curling off the lows intraday, software was showing relative strength, and $IOT was setting up right around the 9EMA after undercutting yesterday's low. Everything was lining up enough for me to take a pilot position with a very defined risk pivot @ LOD. Is the environment "perfect" to trade? Definitely not. Also, fun fact... nothing is ever perfect in the Market. But I don't wait for perfection. If enough pieces of the puzzle come together, I'll take a small shot and let the market tell me if I'm right or wrong. Unfortunately, it didn't take long for software to roll back over, $IOT lost its footing, and I was stopped out at the low of the day. And that's exactly how I want these trades to play out. If I'm wrong, I want to know QUICKLY. I have no interest in sitting there hoping a trade comes back or widening my stop because I "still like the story." My thesis changed the moment the group lost momentum. Once that happened, I was happy to step aside and preserve my capital. I think this is where a lot of traders overcomplicate things. They assume every "stop-out" means the setup was bad. I don't look at it that way. I actually thought the setup was completely valid. I was trading WITH the market instead of against it, buying a leader in 1 of the stronger groups while risking a very tight level. Sometimes those trades work beautifully. Sometimes they don't. That's trading... get over it (especially if it's a small L)! My read is that software probably needs another couple of days to digest before it's ready for another meaningful leg higher. If that happens, great -- I'll happily revisit the group. If it doesn't, I'll simply keep waiting. There's no frustration on my end because I never needed this trade to be the trade. These small pilot positions are how I gather information. If they start sticking, I'll progressively add exposure. If they fail, like this one did, I lose a little, learn something about the current environment, and move on. That's the ENTIRE goal of my process: my feedback loop dictates my aggression! > trade with the tide. > risk very little when you're wrong. > press when the market proves you're right. That's the feedback loop I've built my entire system around. It keeps me objective, keeps my drawdowns small, and makes it much easier to be aggressive when conditions finally improve! You know yourself better than anyone else. :)) Chart: $IOT + $IGV.

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