Dow – Short Term Trades

Let’s note a few important points.

  • After going short, the price immediately moved higher. In this case about 45 points.
  • If you do not have a stop loss in place, with a full lot size that might be negative -$450
  • The price then continued lower, but we were down 45 points and took 7 points profit. In general, we want to do better than that.
  • We did take advantage with the 2nd trade. At that point the channel would have been drawn. For the first trade, we can’t say there was a channel like formation in place yet.