Patience is required

Hi Everybody,

Yesterday was a perfect example of why every professional trader needs patience.

As you can see, the 3min ES gave a nice TS3 buy yesterday, which as the low of the day. The ES then crept higher all day, to eventually reach the first projected profit target. At this point the bars low were not breached, so this long trade remained intact. The STF then broke the strength band so the trade was held until close, which was near the high of the day for a nice +4R Profit (ignoring slippage and commission).

But the point here is that there was just one trade, long form the low of the day, into the close, which was near the high of the day for a good profit. I wonder how many of you did not hold this all the way and as such did not maximise your profits on this trade. Patience is a fundamental requirement for all successful traders....

Steve

3min YM

But what I did like yesterday was how, at the same time as the ES was banking its profit, the 3min YM gave us a good looking TS4 sell. This caught the decline into the close for a nice +3R Profit (ignoring slippage and commission). Makin yesterday a good day overall on the US e-minis

Thanks, Steve

PS, there was also a lovely manual long on the Russell early in the day but as this required totally manual analysis it is beyond the scope of this Blog.

3min ES

Hi Everybody,

After a quiet start, the 3min ES did give us a few tardes, the first was a -1R loss (yes losses can and do happen, but the trick is keeping them small), which was followed by a nice +2.3R Profit (ignoring slippage and commission). Notice how the STF was weak, so the WPT targets were used.

Thanks, Steve

+5.8R on the 3min FTSE

Hi Everybody,

For those of you who read my post on the FOREX Blog on the TS1 setup this morning, well, here is another great example that unfolded on the 3min FTSE from just this morning..........

As you can see, the FTSE rallied up to the Typical Wave 3 WPT nicely where a Profit of +5.8R was available (ignoring slippage and commissions)

Thanks, Steve

PS, there was an opportunity to get short a little while later as a Wave 5 high came in to ride the sharp fall that is currently unfolding, but I will let you all look at that and how it “fitted in” with the larger degree trend perfectly..............

This stuff is absolutely amazing sometimes

For the Advanced Traders....

Hi Everybody,

When there are few setups, the more Advanced among you can also look for “ABC” patterns that unfold by themselves. A good example was on the 3min YM yesterday, where an ABC correction unfolded after the initial decline from the high. This could have been used to enter a new short trade...........

The YM then declined sharply. A simple trade management strategy could have been the ATRStop that would have resulted in a nice +6R Profit (ignoring slippage and commission).

But because this was found using the Elliott Waves module it should be considered an Advanced technique.

Thanks, Steve

A hard day

Hi Everybody,

Unlike most Gurus and software vendors, I do go out of my way to show losses and hard times ! But then, you should all know about the Cyclical nature of Trading by now, so what comes after a run of good and profitable trades ? Exactly some harder times, and that is what we got on Friday. And to keep this Blog even fairer I want to look at the 3min YM which had the hardest day on Friday. Again, there are very few software vendors that will go out of their way to show the hardest and least portable examples. But then we are different at MTPredictor, and want to show you how the “real-world” unfolds. There is too much snake oil and rubbish in this industry, I wish more Gurus were more honest with how the real world really unfolds !

As a professional trader you have to understand and accept that all days will not be easy. Your job is to keep your trading capital in tact during these harder time so you are ready to make the most of the good times, like we had earlier in the week.

Anyway, as you can see there were a few sells as the market continued higher, so no wonder these did not work out. BUT, the 15min trend was up at this time, so you should have been focusing on Long’s and not Short trades, thereby avoiding these potential losses.

Steve

3min NQ

Hi Everybody,

The 3min NQ was the best of the 4 e-minis yesterday with 3 lovely profitable trades.

The first, a TS2 was “in the direction of” the larger degree up trend. As was the TS4 buy later in the day. The only one that was hard was the DP sell. As you all know, you need to be cautious about DP trades, as they are “trend termination” setups and are a bit like standing in front of a train sometimes. That is why they should only be used when they are either at larger degree support/resistance or after 5 clear swings. This DP sell was at a Wave 5 high, although not perfect, that is why if you had taken it, you should have protected it quickly.

The last TS4 buy only got to the DP from the prior Wave b high, but that is a technique I have shown many times over the last week :-)

Thanks

Steve