Cyclical nature of Trading

OK, now we have had a few very very good days in the US e-minis with some massive profitable trades, we must keep an eye on the Cyclical Nature of Trading.

Too many amateurs wait for a few good trades before they take place their trades, but then a few losses come along so they stop, then they see a few good trades so they start again, then a few losses come round. In other words they do exactly the wrong thing !

Once you understand the Cyclical nature of Trading you will understand that you should be come cautious about trades after a good run, and then get keener to place trades after a run of bad trades. This is what professional do, because they understand that profits and losses come round in cycles.

The amateur tends to do exactly the wrong thing at the wrong time... because they do not understand how markets unfold in the “real-world”. So my advice, is to be slightly more cautious now as we have had a run of very good trades...............

Thanks, Steve

TS4 sell on the 3min YM

OK, now we know that we should be focusing on the sells (and not the buys), the min YM did give us a lovely TS4 sell around 11:00am

The YM then declined nicely, past a potential buy, but we have already determined that the larger degree trend was down, so this buy should have been ignored in preference of the current short trade.

The YM then reached the first projected profit target when (using the standard trade management guidelines) a very nice +4.9R Profit was available (using slippage and commission)

A good end to a very good few days in the US e-minis :)

Thanks, Steve

As usual – larger degree trend first

Hi Everybody,

The trend on the 15min YM on Friday was Still down, with no visible DP or WPT support at all. As such, we should have been focusing on sells on Friday and ignoring Buy setups.

OK, with that in mind, lets now move down to the 3min Chart

Thanks, Steve