3min ES gives +6R trade

OK, after a hard day on Thursday it was nice to see this lovely +6R Profit (ignoring slippage and commission) unfold early on Friday. As you can see, this was a standard and automatic setup where the TS3 sell in line with a red STF. Profits were taken at the first target, as the STF was “weak”.

But the point is that this Profit was +6R, it would have more than made up for all the losses on Thursday and put you back onto Profit overall. This is why we keep the losses small, at just -1R, because all it takes is just one big Profit, like this, to put you back into Profit.

This is the key to successful trading, and something that this and the last post should help you all understand.

Thanks, Steve

What it means to be a Professional Trader....

Hi Everybody,

Last week was an excellent example of what it means to be a “professional Trader”. Wednesday was good, with some good trades, then Thursday was hard with a number of losses, ands this is where most amateur traders get into trouble. After a few losses, Amateurs get lost, they worry, and start to second guess themselves. The trouble is that most amateurs trader spend all their lives trying to avoid losses, rather than just keeping them small. They get worried and even get mad at making a loss. These emotions are very destructive, because after Thursday, then are so angry at making a few losses, that they don’t take the trades on Friday.......................... And guess what, Fridays trades were brilliant. So the Amateur was so busy at being angry at making a few losses that they then miss out on the next big profits. This is usually a downward spiral that ends up in bankruptcy.........

The professional, on the other hand, does not mind losses. He knows that his (or her) job is to accept then but to keep them small. The Professional is then ready to take the next trades on Friday.

Even with -2R or -3R of losses on Thursday, as we will see, these are small to the BIG Profits on Friday where almost +10R was available to the Standard Trader. So this is the lesion for today, losses can and will happen, but it is not use getting angry, your Job (if you are to become a professional trader), is to accept then, but to just keep them small. Days like Friday will come along that will then clear all these small losses and put you back into Profit overall...

OK, let’s take a close look at Friday...........

Steve

Just in Time

Hi Everybody,

This is what I call perfect timing, notice how we got an automatic TS3 sell “just before” the DAX declined sharply. As such this was the perfect place to enter a short trade to take advantage as the Dax fell.

A very quick Profit or +6R )ignoring slippage and commission) was available as the Dax reached the Typical Wave 3 WPT target...........

Amazing, and I love it when the automatic setups give us such brilliant trades as this !

Thanks, Steve

Holiday

Hi Everybody,

Steve is away for a few days on a well earned holiday, so there will be no Blog posts for a few days.

Thanks

Steve

What a brilliant day !

Later in the day we had a automatic TS1 sell (on a red STF) that caught the last decline into the low of the day. This added another +3.8R Profit )ignoring slippage and commission).

What a brilliant day – with approx +10R Profit and all in just one day. This is why I keep talking about the Cyclical Nature of Trading, because it is days like this that will clear all those small -1R trades and put you back onto Profit. This is why it is so important keeping the losses small when they unfold. As Big Profitable days like this will then wipe out all these small losses and make money for you overall.

What a brilliant day ! Thanks, Steve

PS, but it did not stop there, see the Advanced Blog...........

What a brilliant day !

Hi Everybody,

As you all know, trading goes in cycles, this is what I call the Cyclical Nature of Trading. The Standard Traders among you have had a hard time recently, but that all changed on Friday, when we had some brilliant standard and automatic trades on the 3min YM.

Let’s start with the TS4 sell at 12:24EST. This nailed the high perfectly, just before the YM declined sharply. Even at the DP target there was approx +6.4R Profit (ignoring slippage and commission). What brilliant start to the day, but it did not stop there ! See the next post.

Thanks, Steve

Against the trend

Hi Everybody,

I know this is more of an “advanced post”, but berceuse I get asked this questions a lot, I thought I would post it here. The question i, how to manage a trade “if” you are “against” or you feel “unsure” of the larger degree trend.

Well, as I teach, when you are either “against” or you feel “unsure” of the larger degree trend then you should be more aggressive with managing your trade. For example using the 100% initial risk guideline. This is good as it gets your stop to “break-even” quicker so you are protected, while still allowing a little “wiggle room” for the trade to go your way.

A good example was this DP sell on the 3mion Dax from this morning. The larger degree trend was not clear, so moving the stop to break-even as soon as the short reached the 100% initial risk level was a good idea. This level was not hit and the short (in this example) went onto reach the first target where +4.8R Profit (ignoring slippage and commission) was available. Yes banking profit earlier is also a good idea when the larger degree tend is unsure

Thanks, and I hope this helps ?

Steve