Yet another good day............

Hi Everybody,

Yesterday was yet another good day, that started with a lovely TS1 sell in the 3min ES. As you can see, the STF was Black, so this was OK to take. The ES then declined nicely to reach the first projected Profit target, where the STF was weak, so profits were taken at the WPT target. This is all text book stuff and all using the standard guidelines.

The result was a quick +3R Profit (ignoring slippage and commission). A nice start to the day !

Thanks, Steve

Another good day......

Hi Everybody,

The Cyclical Nature of Trading is an amazing thing. After a very hard day earlier in the week, where we had 3 loses back to back, a series ifo losses that would have got many amateur Traders stopping or doubting themselves. But juts look how MTPredictor has bounced back, with +2.5R Profit on Tuesday on the 3min ES and now another brilliant trade yesterday – a TS4 buy that nailed the very of the day for you – brilliant !!

This TS4 buy was a standard setups, where the STF was blue. Profits were taken at the first target as the STF was weak as the markets reached the zone. The result, a nice +3.6R Profit (ignoring slippage and commission.

As I say, add that to the +2.5R Profit from the day before, and the -0.6R Loss from one day earlier looks very small indeed. This is why it is so important to keep the losses small, as even after 3 losses (-3R loss) then next three trades made approx (+2.4R +2.5R +3.6R) +8.5R far far higher than the -3R loss. This is the true key to successful trading, keeping the losses small, then how MTPredictor will maximise your Profits....

The last few days have been an absolutely brilliant example of this and one I hope you all remember........

Steve

PS, it would have been nice to catch the DP sell, that nailed the high of the day, so please turn over to the Advanced Blog.

Cyclical Nature of Trading.

Hi Everybody,

The last few days have been a brilliant example of why it is so important to keep your losses small. Yesterday we saw how even after 3 loses in a row, the overall loss was only small, at juts -0.6R. Then look what happened yesterday, a nice +2.5R Profit (ignoring slippage and commission) on the 3min ES, which put you back into Profits overall.... Also remember that we had a couple of good days before that as well.

This is why it is so important to accept the losses but just keep them small. Because the Cyclical Nature of Trading means that it will not be long before the next profit comes along, and (this is the import part), with MTPredictor, that Profit will be larger in relation to the losses.....

So the last few days have been a very good lesson on this, that I hope has helped you all become better traders.

Thanks, Steve

Cyclical Nature of Trading (how to deal with losses)

Hi Everybody,

Yesterday was a good lesion in that losses can and do occur. Many Gurus will never mention losses, but they do not know how the markets unfold in “real life”. We all know that losses can and do unfold, so there is no point hiding them. But what we have to understands is that losses are important, mainly because it is how you handle losses that will make you a better trader. A good example is on the 3min YM, here you would have had 3 valid losing -1R trades in a row, so yes you would have been -3R down. But then the TS4 sell towards the end of the day made +2.4R Profit (ignoring slippage and commission)..... In other words making up most of the earlier losses for you.

So you should have ended the day down just -0.6R. Now compare -0.6R loss to the big Profits form the last few days, and do you see why losses should not be worried about or ignored, they should just be kept small. By keeping them small it means that you are back in the black with only 1 or 2 trades, even after 3 losses on the trot.

This is one of the hardest thing new and Amateurs traders struggle with. They find it hard to deal with losses. They want to just avoid them, then after 1 or 2 losses they stop trading and therefore miss the next big winner. Losses should not be vied as a “mistake” or anything “wrong”, but just as a “business expense” and part of the cost of trading. They will be easier to deal with then......

Thanks, Steve

+6R on the Russell

It was not so hard on the Russell Index, where there was no such problems, The TS4 buy was a perfect and straightforward “standard” setup, where the TS4 buy unfolded on a blue STF.

The Russell rallied nicely (with no opposing sells). As the STF was strong, the Standard Trader swapped to the ATRStop, which held the long into the close for a nice +6R Profit (ignoring slippage and commission).

Nice, easy and straightforward.....

Thanks, Steve

A tricky question.

Hi Everybody,

Every once in a while, along comes a tricky question on what to do when you are in a good and profitable trades and an “opposing” signal comes in. Normally, I look to the larger degree (15min) trend and then go with that. But ever so rarely we get a situation like we had on Friday, when the larger degree trend was not clear, and we were long off a TS4 buy setup at 14:27EST, but at 15:27EST along comes a sell setup. Now, this sell was “valid” as the STF was black, but the question is whether you want to “stop and reverse” a good strong opposing position ?

As I say, normally I would look to the 15min trend for the answer, but in a case like this when there is no clear “larger degree” trend, I would suggest sticking with your original; position, especially as you were in Profit ant is was going well.

The result was to hold this long into the close (as the STF was strong) for a nice +3.9R Profit.

But trading is like this, just sometimes we do get a situation, when the decision is no clear and we just have to d the best we can at the time.

Thanks, Steve

A good day on the standard setups, Part 2

OK, after a nice +2R Profit on the 3min EWS, it was nice to see a later TS3 buy on the 3min Russell Index. As you can see, this added another +2.7R Profit (ignoring slippage and commission), making yesterday a good day for the standard and automatic setups.

This is all part of the Natural Cyclical Nature of Trading, where the good times (Profits) are followed by harder times (losses) and quieter times, before the good times come round again. The last few days on the automatic setups has been a brilliant example of this. Too many Amateurs expect to just make profits all the time. The real world is not like that, there will be losses, the trick is keeping them small. Even with 4 losses (-4R total) on Wednesday, which is a hard day, +4.7R Profit yesterday form just two trades would more than have made up for that and put you back in Profit again............ This is what successful trading is all about, keeping the inevitable losses small so you are ready to make the most of the profitable trades..........

The Analysis is the easy but, the Psychology of dealing with how Profits and losses and then Profits again unfold in cycles in the real world is the hard part to learn to deal with and accept.

Thanks, Steve