DOW – Short Term Trades

The market moved lower early in the session

I was short. This may not have been the easiest to identify potential swing point, but after the second short trade I speculated that the market was not going to continue lower (at least right away), and therefore went long.

Important point (in my own view)

If one wanted to remain short, at what point would you question that? At the 38.2 Fib level? At the 50 level? At the 61.8 Fib level?

Later towards the end of the session, the market did move lower than the initial low shown in the chart. So technically you could have remained short and possibly profited.

If you are aiming to be a serious trader, there is a lot to think about in this post. You can use this post to ask yourself some very crucial questions.