It was an inside day for ES in a hope of Tuesday turn around. Although it opened higher but it couldn't take out the high of prier day. I was able to exit part of my positions of 1770 and 1765 of this month end. These positions were was passed my stopping point last Friday. I didn't have time to deal with it last Friday as I was busy trying to exit the two under water scalps. I got out within 1.5X of my entries. I had a thought in back of my mind as should I just exit all of my contracts. I didn't have a clear rule in my plan. I often use scales in attempts of reducing my losses. The risk of this practice is that the loss could get worse. I need to set some rules here.
After closing market had a big pop on news of Turkish Central Bank announced a 0.75 point rate hike to defend its currency. ES had a 12 point pop and it made my feel that I was out too early. Then I came to think of such unforeseen event could go either way. I did it right following my rules in a rule based trading.
I made progress in my discipline by being able to hold my urge to enter positions in a day before FOMC meeting. I had fear of missing if the market pops after the meeting. On the other hand it could have a big drop as well since the market is in a short term down trend and some good news may not help. Either way, get to hold my rules.
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