As the 15min trend (not shown) was up, it was a good idea to be looking mainly for long trade yesterday. Even when there is a clear trend direction, losses can and do happen, all professional traders know and accept this. And, unlike most vendors, we do talk about and show losses. For example on the 3min NQ where we had two -1R losses yesterday. BUT (and this is the important point), these where kept small, mush smaller than recent Profits. Small losses and Big profits, that is the key to long term successful trading.
For Advanced Traders, there was another opportunity for a long trade as support came in at the DP on Stochastic divergence. Just using the ATRStop would have ridden this long up for a nice +6.4R Profit (ignoring slippage and commission).
But do you all see how this one Profit at +6.4R was much much bigger than the two (-1R each) losses for a total of -2R. This is how professional Traders make money over time, it is the relative size of the Profits and losses, not their number, most Amateur Traders never fully appreciate or understand this ....
Thanks, Steve
For Advanced Traders, there was another opportunity for a long trade as support came in at the DP on Stochastic divergence. Just using the ATRStop would have ridden this long up for a nice +6.4R Profit (ignoring slippage and commission).
But do you all see how this one Profit at +6.4R was much much bigger than the two (-1R each) losses for a total of -2R. This is how professional Traders make money over time, it is the relative size of the Profits and losses, not their number, most Amateur Traders never fully appreciate or understand this ....
Thanks, Steve
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