Cyclical Nature of Trading...........

Later in the day yesterday the picture because a lot less clear as the 3min charts became choppy as they reached 15min resistance levels. This can and does happen. Too many amateur traders “assume” that everything is picture perfect each and every day. Real life trading is simply not like that. I describe it as driving in Fog. Sometimes the fog is dense and you can’t see, but sometimes it is clear and you can see well. Trading is the same, sometimes the pattern is clear and at other times it is not..... This is why “assuming” that you are going to make “x dollars” each and every day is wrong, because some days it will be easy and you have good profits, but then some days you will have losses, and other days will be hard with no trading...

This is the Cyclical Nature of Trading....

Something that all professional traders come to learn and understand. Once you do, then you can trade “in tune” with how the markets really unfold. Please read this PDF:
http://www.mtpredictor.com/support/documents/How%20Profits%20and%20loses%20unfold%20in%20the%20real%20world.pdf

Then you will have a better “expectation” of how Profits and Losses unfold in the real word

Thanks, Steve

Nice TSA3 buy on the 3min Chart

Early in the day we got a good looking TS3 buy on the 3min NQ.... As this was in the direction of the larger degree (15min) up trend, this was a good trade to consider.

As the STF strength band was strong as the first WPT target was reached, standard traders would have swapped to the ATRStop. The result was a nice +2.9R Profit (ignoring slippage and commission).

So far so good. But this is when the nice clear patterns then ran out, and the day got a lot harder as the pattern became less clear later in the day.

Steve

The day started well

Hi Everybody,

The day started well yesterday, with a clear up trend, this can be clearly seen on the 15min NQ where the market was rallying from DP to DP. So early in the day yesterday the larger degree trend was up....

A word of note on using the longer (15 and 60min) charts over the “Roll over period”. When we chart across the Roll Over the longer charts can get distorted because of the price difference between the last and current contract month. This can skew your 15min charts a bit. This is just something to be aware of....

OK, onto the 3min NQ Chart now

Steve