3min NQ - losses

Hi Everybody,

In this post I just wanted to remind you that even the Advanced Techniques can make losing trades at times.

Normally I suggest that when the larger degree trend is uncertain or you are against the larger degree trend the Advanced Traders among you can protect against losses by moving your protective stop to break-even quicker (by using the 100% initial risk level). But sometimes this is not quick enough and a -1R can result. Please see this example from Friday on the 3mon NQ.

It is important to understand (and for me to show) that losses can and do unfold in any trading. Too many Gurus and software vendors never show losses, which just distorts what it means to be a professional trader. Losses can and do happen, the trick is keeping them small, as just -1R

Thanks

Steve

The power of the DP

Hi Everybody,

This post show how powerful the DP’s can be at times. Here the DP’s nailed both the high and low of the day on the NQ on Friday...................

Thanks

Steve

The importance of correct Position Sizing.

Hi Everybody,

Here is a great example of why correct Position Sizing is so important, to keep your losses small and your Profits large.

Here the FTSE 3min had two losing trades, but (this is the important part) the 3rd trade (TS3 sell) made approx +3R (ignoring slippage and commission). So -2R plus +3R = +1R Profit overall. Or in other words, 2 losing trades and 1 winner actually made money overall................

This is the point that so many amateurs traders simply do not get. They all strive a high % if winners (which is actually very very very hard to do for a long time). BUT they do not understand that you don’t have to have a high % of winners to make money, the most important point is that the losses must be kept small, so a number of losses are then cleared and put back into profit again by one big winner.

Here this +3R profit (which was not that big) cleared two prior -1R losses and made money overall............

Most Amateur do not get this, that is why 97% of amateurs fail in this industry............... Bottom line, you must keep your losses small and profits large – it is all about Risk Control........... To become a successful professional trader.

Thanks, Steve

FOREX – GBPUSD 60min (Part 2)

As you can see from the chart the automatic DP buy (shown in the last post) was indeed off a Wave 5 low. This is where the Elliott Wave module in the full MTP v6.0 helps......

Advanced traders could have used the higher DP to protect slightly more profit than the ATRStop.

In this example I am using eSignal data saved to the hard drive via QCollector then loaded into the current MTPredictor V6.0.

Thanks

Steve

FOREX – GBPUSD 60min

Hi Everybody,

A nice DP long trade on the GBPUSD 60min chart has just been stopped out. As you can see from the chart, using the standard trade management guidelines this would have resulted in a nice +5R Profit approximately.

As you all know, I only like DP’s when they come at larger degree support / resistance or at the end of a nice 5-wave sequence, so let’s see this in the next post.

Notice how the automatic Position Sizing guided you how many lots to take for a constant initial risk. Correct Position Sizing is vital for long term trading success....

Thanks

Steve

3min NQ – DP Buy

But the NQ did not stop there.............

Later in the day, a DP buy appeared. As the larger degree trend was unsure, caution should have been used on this setup. This means skipping for newer traders, or for the more Advanced Traders among you, moving the stop to break-even quicker than normal.

But the end result was good, with a nice +2R Profit (ignoring slippage and commission) as the ATRStop was used for trade management.

Thanks, Steve

3min NQ – TS4 sell

3min NQ – TS4 sell

After a quiet day on Tuesday it was nice to see the US minis give us some good trades yesterday. But then as you all know about the Cyclical Nature of Trading, this should come as no surprise to any of you

The 3min NQ was the star of the day yesterday staring with a nice TS4 sell early in the day. The NQ declined from this TS4 high to new lows. Standard trade management meant that the ATRStop was used once the STF strength band was exceeded. The result was a nice +4.2R Profit (ignoring slippage and commission)

A good start to the day :-)

Thanks, Steve