+10.9R Profit on the 3min YM !

The ES was not the only market yesterday that has brilliant trades, the YM also had a TS3 sell setup, please see the chart. Here the profit at the first target was a massive +10.9R (ignoring slippage and commission) !

What a brilliant day on Friday !!

Thanks, Steve

A brilliant day

Hi Everybody,

Well I did say that it would not be long before we had a few good days . This is just how the Cyclical Nature of Trading unfolds in the real world. And Friday was another good day. If we first look at the 3min ES, we can see how we got a TS3 sell in the morning. This nailed the high nicely, before the ES started to drift lower. This decline kept of going and going, until it reached the first projected profit target, where standard traders would have banked a very nice +6.4R Profit (ignoring slippage and commission).

This just goes to show how we should understand the Cyclical Nature of Trading. After a bad day on Wednesday it was all too easy to give up. But then you would have missed two brilliant days on Thursday and Friday where some big profits came through....

Thanks, Steve

Amazing ES short

Hi Everybody,

As I said yesterday, the markets go in cycles and after a few hard days we were getting ready for a good day, so when we got a TS3 sell to go short right off the open, I had high hopes. The ES did not disappoint, as the ES dropped straight into the Typical Wave 3 WPT. With +6.4R Profit (ignoring slippage and commission) available at that level, and some TS4 buys coming in on the 15min Charts (NQ), looking to bank such a good profit was a good idea........

No do you see why it is important to keep your losses small. Even with a bad day on Wednesday with three -1R losses, this one +6.4R Profit puts you back into profit in just one go ! That is the secret to successful trading, keeping the losses small and profits large.

Even with two more -1R losses later in the day, you were still up overall............. So all in all, a good day yesterday !

Thanks, Steve

Cyclical Nature of Trading.

Hi Everybody,

As I said a few days ago, after a very good week last week, where we had some huge profits, this week we have move into the harder part of the cycle. This is all the natural way markets unfold. I call it the “Cyclical Nature of Trading”, where the good times are followed by quieter times, where some small losses unfold, before the good (profitable) times come round again.

Well yesterday was a hard day on the 3min ES with three -1R losses. Yes this can and does happen sometimes when trading. Most vendors never tell you about losses because they are not real traders. But we believe in telling you how the markets unfold in the “real world” and yes there will be hard days like this. But, as I have said, this is OK as the losses are kept small, small in comparison to the big profits last week.

As we are in the hard part of the cycle now, it will not be long before the good (and profitable) part of the cycle come round again. But understanding how the markets unfold in the “real world” is vital if you are to become a professional trader, and learning to accept the harder times is just part of that.

But was it all hard work yesterday ? lets look at the Russell Index on the Advanced Blog.

Thanks, Steve

Break-even trade

If you all remember last week I talked about using the DP from the minor minor Wave 4 swings as an “initial target” off the end of a Wave 5 Swing. Well, the same applies from the end of a Wave C from the minor Wave B swing. As we can see on the 3mon NQ yesterday, this nailed the low before the NQ reversed. So how can this be used ?

In this example, as you were short from the prior TS3 sell, you could have used this DP to lower your protective stop to at least break-even once the DP level was reached. AS you can see, this helped avoid what would otherwise have been a losing trade.

Again, all these techniques are in the Trading Course for you to study in your own time.

Thanks, Steve

Another quiet day

Hi Everybody,

As I suggested in yesterdays post, yesterday was another quiet day, with few trades, this is just all part of the Natural Cyclical Nature of Trading. Having said that, there was a nice TS4 buy setup late in the day on the 3min ES. As you can see, this nailed the low, just before a nice rally into the close.

The result was a +2R Profit (ignoring slippage and commission).

So even though it was a quiet day, the 3min ES ended up with a nice profit.

Thanks, Steve

A quiet day

Hi Everybody,

Friday was a quiet day on the US e-minis. But this is OK as the earlier part of the week was so good, with some fantastic trades.

This is just the natural Cyclical Nature of Trading, where the good times are followed by quieter times and some small losses before the good time come round. So having a quiet time on Friday should have come as no surprise at all.

It will not be long before we get back into the good part of the cycle, but we still may have a few quiet days yet.

Thanks, Steve