Thursday, February 6, 2014

ES 60 Minute Breakout - question from a reader


ES 5 Minute Chart
.
E-Mini: ES
Long or Short: Long
Entry Point: 1761
Stop: 1759
Exit Goal:1763
Exit Goal 2 (optional): 1765
Result: W
Notes: Question and the chart from a reader.....

I took a trade today, 1 hour breakout off R2.

I'm finding it hard to use 1 contract with 1:1 R:R.

Today I tried 2 contracts, just to lock in some profit when I moved stops to break even.

I used 1.5 stop loss, 2 points profit first target, and 3.75 points profit second target with stops moved to break even when first target is hit.

The TICK was above zero line for the first hour, it is difficult to read, so I placed SMA on it. Do you look at the TICK ALL the time?

Can you comment on my trade?

First the best breakout opportunity was at the 15 minute High. No resistance and plenty of room to run. While your trade worked out I would have passed after being extended and up against resistance (would not fade either with strong morning)

Stick with one contract until you are have consistent success, over 70% win rate. Take the 2 points and get out. You must learn to walk before you can run. One to One works because it forces you to only take the best setups....and not depend on a 4-5 pointer to bail me out. 

If the TICK is difficult to read make your screen larger. I watch the TICK like I do the ES. 

Always open to adding trades from other traders. If its a bad/embarrassing trade (we have all had them) just send anonymous. Only way to learn. 
 

* 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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