Monday, January 13, 2014

ES 30 minute Fade Short


ES 5 Minute Chart
.
E-Mini: ES
Long or Short: Short
Entry Point: 1837.75
Stop: 1839.75
Exit Goal:1833.75
Result: W
Notes: Multiple resistant points (4 points) and TICK divergence. Take half or more at 2 points and let it ride or just take 2 points and move on for the day. No reason to chase the homeruns.

I want to point out to new traders or any trader the importance of patience and taking one or two trades a day and moving on. For example today I passed on taking a trade for over 60 minutes. Sat on my hands and listened to sports radio. The setup presented itself and took the trade. Win or loss I was set to move on for the day...which means I turning off the computer as this was a slow do nothing day. Have a hobby (besides the hobby of trading) to turn to after 60-90 minutes of trading..... Part-time or fulltime job, start a blog, read a book or joining a club will keep you busy and away from the temptation of over trading or following someone on Stock Twits or any other service.

 

* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.


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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE