Hi Everybody.........
Today’s lesson is all about Patience and Discipline. These are qualities you must learn to have if you wish to become a successful professional trader. The 3min ES yesterday was a perfect example of this.
As you can see the 3min ES had 3 straight losing trades yesterday, so most amateur traders would have given up. BUT look at what happened on the forth trade of the day, a brilliant +6R winner (ignoring slippage and commission). So +6R less 3R (three -1R losses) meant even with 3 losses and 1 winner you were up +3R overall. Understanding this is what makes the difference between a successful professional trader and a losing amateur.
BTW, when you are sitting on a good profit and you only have a short time before the market closes, it is always sensible to look to lock in that profit, that is why I suggested trailing the stop just above the bar highs. If you had held to the close it would still have been a +5R winner though.
Thanks, Steve
Today’s lesson is all about Patience and Discipline. These are qualities you must learn to have if you wish to become a successful professional trader. The 3min ES yesterday was a perfect example of this.
As you can see the 3min ES had 3 straight losing trades yesterday, so most amateur traders would have given up. BUT look at what happened on the forth trade of the day, a brilliant +6R winner (ignoring slippage and commission). So +6R less 3R (three -1R losses) meant even with 3 losses and 1 winner you were up +3R overall. Understanding this is what makes the difference between a successful professional trader and a losing amateur.
BTW, when you are sitting on a good profit and you only have a short time before the market closes, it is always sensible to look to lock in that profit, that is why I suggested trailing the stop just above the bar highs. If you had held to the close it would still have been a +5R winner though.
Thanks, Steve
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