I went short a mini at 1177 overnight believing that it would take out the most recent low. Now I'm down 23 points in it as it has roared on the 1st of the month.
I had several opportunities to get out but I've consistently seen that every position I've had in the futures ended up being a winner if I was patient. It might take several days but so far its been consistent, and this is sort of the test for that.
Scalping for a half point and all is great, but I see the bigger moves and want to be able to take advantage of them, and they require that I get comfortable with something that moves against me for a while. There is a lot of pain right now ($1000 down) but the futures have had a huge move in a short time and it will have to correct -- it always has.
What I'm going through internally is when do I thrown in the towel and say I missed it. I went short at the wrong time and the charts showed me that but I didn't use that as an entry rule. I have also gone short at the top of a move only to see it go another 20 points higher, after the elections, but at least in that case I was in the right position.
The bad part about holding this position is that I'm locked out of futures trading until this position clears. I transferred more money into the account so I can go short another contract when that clears but I can't go long because it would cancel out my short -- you can't be short and long a position in the same account.
This is really trying to learn swing trading for futures (or forex), where the dollars are quite large.
I took advantage of the peak to go short some EURO and am in the money on it and will just hold it. I set a stop at my entry so I can't lose money on the trade, and I want to just watch it play out over time.
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