Trade Update: S&P 500 short @ 917; EUR/USD short @ 1.4121

We were stopped out for -40bps. With retrospect I think our stop loss was slightly on the big size as hitherto the S&P500's loyalty to our descending resistance had been absolute. Should we have flipped our position with the fracturing of this resistance? Maybe....

With every trade, we must remember that no chart pattern is completely infallible, that is, perfectly applied technical analysis is no guarantee of a profitable trade. Conversely, a losing trade is not necessarily indicative of poor technical analysis and so as traders it is important for us to focus on that which we can control- not the outcome of the trade, but the quality of the thinking behind it.

With this in mind, we instituted a Fiber short @ 1.4121 (1850 GMT) citing a similar descending resistance line to that which we were watching so closely on the S&P500:





Please forgive me putting on my philosophical hat, but I think it's crucial that we understand the very nature of trading in order for us to one day excel at it.

Happy Trading all!