I was looking at TIMSCI this morning. With 3-digits closed of Dow, TIMSCI opened low this morning. After first hour of trading, a descending triangle is formed in 5-min chart. I was looking at SHORT entry at 265.8. I pulled out my sell stop order, as realising RSI formation was not in my favour.
I waited for opportunity to go Long after seeing double bottom with high lows formation is RSI. Long position was established at 266.4. Mistake was made when I decided to put a closed stop loss at 266. Initial stop loss should be placed at 265. I did not face the fact that the volatility of this index did not allow me to be timid. Stoploss was hit as expected.
In fact , analysis done retrospectively shows if I were to follow my original plan, trade should be closed at 266.3. Though it is still a losing trade, loss is smaller and taken out by planned trailing stop is the best way of exit.
Small loss to pay for the lesson. One trade and the first trade of TIMSCI with a loss of -0.4 points.