Better Never than Late?

I have always said that it is better to be aggressive and early in your entries than to be late. Today's trade is a perfect example of this.

For one reason or another we were late starting this first trading day of 2010. Maybe it was the after holiday re-entry problem. Any way, we missed the entry on the ES at 1116.25. We then had to find a secondary entry point and it was at 1118.50 with our stop at 1116.50. We then had to sit for over 4 hours lethargically watching the market consolidate until the coil sprung at around the RTH opening. The risk here was that "they" went to try and fill the gap between the RTH open and the last close at around 1113.50. Luckily it didn't eventuate and the market motored to the swing high at around 1126.00 where it again consolidated, looking to go to around 1129.00. We scaled at 1120.50, then at 1125.50 and held the last 1/3 until 1129.00. 

It was quite painful sitting for 4 hours plus with the price against us. We had a couple of opportunities to scratch the trade, but it never entered our minds as the order flow was always positive, even though the momentum wasn't. Had we made the correct entry at 1116.25, we would have saved ourselves a lot of pain as the market never gave any heat to an entry at that price.

Again, it's Location, Location, Location. We ended with a 10 Point Buck. A good start to the year. 

 

Click chart to enlarge