Why I Took a Short Position on the US100(high risk)
Even though I typically avoid shorting indices, especially in the current macroeconomic environment characterized by a resilient labor market and increasing likelihood of a soft landing, my trading decisions are heavily rooted in technical analysis. While the broader economic context leans towards stability, the charts presented a setup that I found compelling enough to take the risk.
The position, admittedly, is high-risk, with a significant probability of hitting my stop-loss. However, I believe that the potential reward justifies the calculated risk, given the structure on the chart. If the stop is triggered but the broader technical context remains unchanged, I am prepared to re-enter the position and risk an additional 2-3 stops. My approach relies on consistency and discipline, so as long as the technical indicators and levels I evaluate continue to align, I am comfortable with this risk.
This trade is more of a strategic decision than a fundamental one. It’s driven by my confidence in the patterns and levels I see, not a bet against the underlying strength of the index or economy. It's a reminder that, sometimes, even in favorable macroeconomic conditions, the charts can tell a different story worth exploring.
The position, admittedly, is high-risk, with a significant probability of hitting my stop-loss. However, I believe that the potential reward justifies the calculated risk, given the structure on the chart. If the stop is triggered but the broader technical context remains unchanged, I am prepared to re-enter the position and risk an additional 2-3 stops. My approach relies on consistency and discipline, so as long as the technical indicators and levels I evaluate continue to align, I am comfortable with this risk.
This trade is more of a strategic decision than a fundamental one. It’s driven by my confidence in the patterns and levels I see, not a bet against the underlying strength of the index or economy. It's a reminder that, sometimes, even in favorable macroeconomic conditions, the charts can tell a different story worth exploring.
Trade closed: stop reached
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.