Patience, Patience, and more Patience

It was not only the ES that had a good trade yesterday, the YM got into the act as well. But, as with the ES, the TS3 sell on the 3min YM only arrived very late in the day.

As you can see, this TS3 sell caught the fall in the last hour of trading, for a nice +2.7R Profit (ignoring slippage and commission). Add this to the Profits from the ES and yesterday turned out to be a good day, even if you did have to wait a long time, the Profits were there...........

Thanks, Steve

Patience, Patience, and more Patience

Hi Everybody,

Yesterday was a good example of why you need Patience as well as Discipline when trading. Yesterday the markets were very quiet for most of the day with the 3min ES just drifting lower slowly. However, the ES gave two sells signals later in the day, the first for a -1R loss, but the second was for a +2.9R Profit (ignoring slippage and commission).

AS always, the Profits was much larger than the losses, therefore making money overall.

So the lesson here is even though it may be quiet, all “day traders” must be there for the whole day as you never know when the profits will arrive.....

Thanks, Steve

Tricky trade management, Part 2

If we now turn to the 3min NQ (see chart) and if you also look at the 3min Russell (not shown), both these markets were at DP support. Sp with this in mind, it would have been a good idea to look to protect at least some of your open profit on the 3min ES short trade. Especially as you had two -1R losses earlier in the day and we were expecting a hard day yesterday.

In this way, you could have come out of yesterday break-even, which is always a good result when it is a hard day.

This is all about gaining experience and “learning” to become a better and more experienced trader....

Thanks, Steve

Tricky trade management

Hi Everybody,

Today I would like to look at a short trade on the ES yesterday and how to manage it, especially as it was slightly tricky.

First, I would say that “normally” I would suggest sticking to the “standard” trade management guidelines if you are a Standard Trader. But my goal though these posts is to move you beyond this level to become a more experienced trader.

So here was the position yesterday. We had a good day the day before, so we should have been expecting a hard day yesterday so when we had two -1R losses early on, our aim should have been to look to get back to break-even for the day (as we were expecting a hard day). So my question is whether there were any signs to help you protect this 3rd good trade ? Normally we look to the DP form the minor Wave b low, but on the ES it had not quite got there............ But this is where we keep an eye on all the 4 E-minis.

Let’s take a look at the NQ in the next post

Thanks, Steve

NQ helps as well

There was also a nice TS3 buy later in the day on the 3min NQ. Please see the chart. His resulted in a nice +2R Profit (ignoring slippage and commission). Adding this to the -1R from the ES and the +3R from the YM meant that we had a good day on the US e-minis yesterday...........

Note: as the STF was blue, the sell setups were avoid by the standard traders among you.

Thanks, Steve

Loses can happen....

Yesterday was also a good example of how loses can and do happen,. All traders know that loses unfold when trading, there are just too many vendors and Gurus that never mention losses. This gives a “false” impression that trading is all about a high % of winners, it is not, successful trading is all about keeping the inevitable losses small.

Here this -1R loss on the 3min ES was small when compared to the +3R Profit on the YM (see post below)

Small losses and big profits (not their number) is the real key to successful trading....

Thanks, Steve

A good day

Hi Everybody,

Yesterday was a god day for the Standard Traders among you. The day started with a TS2 buy on the 3min YM.....

AS you can see from the chart, after a long time, the YM did reach the first projected profit target. At that time the STF was weak, so standard traders would have taken profit at that level for a nice +3R Profit (ignoring slippage and commission)

A standard and automatic trade that was managed using the standard trade management guidelines........

Thanks, Steve