Hi Everybody
Isn’t the cyclical nature of trading amazing ! I said yesterday that we were now overdue for a good day on the US e-minis and then pops up a +9R Profit, amazing ! Seriously though, this is why the newer traders among you need to know about the cyclical nature of trading so you do not get down during the quiets times, otherwise you will miss great trades like this one....................
So let’s take a look at the 5min ES chart. As you can see, this automatic DP buy nailed the very bar of the low, long form the low of the day is always nice for a day trader ! Then, the ES rallied straight though the initial profit target to reach the next DP level. This is where experience comes in...........What is the common sense thing to do if you are at DP resistance and the end of the day is approaching and you are sitting on +9R Profit. Bank it, or use the ATRStop which does not have a lot of time to run and is only on +5.6R Profit ? Personally, +9R Profit is huge and should be protected ( at least some of it, if not all of it) especially as the end of the day is approaching.
Again, this is where experience come in and a good trader will always win out over a purely mechanical approach, this is the reason I put so much effort into these posts to teach you how to handle situations like these. Either way, the 5min ES yesterday as a very nice profit
Thanks, Steve
Isn’t the cyclical nature of trading amazing ! I said yesterday that we were now overdue for a good day on the US e-minis and then pops up a +9R Profit, amazing ! Seriously though, this is why the newer traders among you need to know about the cyclical nature of trading so you do not get down during the quiets times, otherwise you will miss great trades like this one....................
So let’s take a look at the 5min ES chart. As you can see, this automatic DP buy nailed the very bar of the low, long form the low of the day is always nice for a day trader ! Then, the ES rallied straight though the initial profit target to reach the next DP level. This is where experience comes in...........What is the common sense thing to do if you are at DP resistance and the end of the day is approaching and you are sitting on +9R Profit. Bank it, or use the ATRStop which does not have a lot of time to run and is only on +5.6R Profit ? Personally, +9R Profit is huge and should be protected ( at least some of it, if not all of it) especially as the end of the day is approaching.
Again, this is where experience come in and a good trader will always win out over a purely mechanical approach, this is the reason I put so much effort into these posts to teach you how to handle situations like these. Either way, the 5min ES yesterday as a very nice profit
Thanks, Steve
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