03/12/03 - Broke Even

Student Note:  We released the 'System 1 Quick Glance' document today and sent it via email to course owners. This will now make it easier for me to communicate certain points regarding the system.

This section will clear up any confusion regarding the entry point.

In the System 1 Quick Glance document, regarding point number (4). The 'lowest risk' price must be supported by at least the a 'highest risk' price or a 'medium risk' price. If it's not, then it's 99.9 percent certain, that this is a System 2 trade and not a System 1 trade.

This is today's chart up until the Dow opens. I made the trade at 13:36 at a SELL price of 9880. But as it wasn't supported by either the 'highest risk' price or a 'medium risk' price then I should have known that this was a System 2 trade and not a System 1 trade. Therefore no trade should have been placed at this time.

This is one of the easiest mistakes to make, because the emotions start to build as you realise a trade
beckons! And indeed, there is a very good trade on - just not a System 1 trade.

I closed the trade at 15:25 for 9880.

End of Day Chart