A good day on the standard setups, Part 2

OK, after a nice +2R Profit on the 3min EWS, it was nice to see a later TS3 buy on the 3min Russell Index. As you can see, this added another +2.7R Profit (ignoring slippage and commission), making yesterday a good day for the standard and automatic setups.

This is all part of the Natural Cyclical Nature of Trading, where the good times (Profits) are followed by harder times (losses) and quieter times, before the good times come round again. The last few days on the automatic setups has been a brilliant example of this. Too many Amateurs expect to just make profits all the time. The real world is not like that, there will be losses, the trick is keeping them small. Even with 4 losses (-4R total) on Wednesday, which is a hard day, +4.7R Profit yesterday form just two trades would more than have made up for that and put you back in Profit again............ This is what successful trading is all about, keeping the inevitable losses small so you are ready to make the most of the profitable trades..........

The Analysis is the easy but, the Psychology of dealing with how Profits and losses and then Profits again unfold in cycles in the real world is the hard part to learn to deal with and accept.

Thanks, Steve

A good day on the standard setups....

Hi Everybody,

Even after what I said yesterday on the standard setups, true to fashion, and in line with the Cyclical Nature of Trading, the standard and automatic setups had a good day yesterday.

As the STF was blue, Standard Traders should have been looking for buy (not sell) setups. And we got a lovely DP buy on the 3min ES that nailed the low of the day ! The ES rallied nicely to the first target where +2R Profit (ignoring slippage and commission) was available.

But this was not all, as we will see in the next post

Thanks, Steve