Ideas for struggling traders

From my standpoint, one of the biggest problems struggling traders face is letting winners run.

I discuss this now because, you have to let winners run to overcome expenses and drawdown...This is key to becoming profitable.

This is one of the hardest things for a new or struggling trader to learn. That is why I suggest trading multiple units and scaling out

Again my scale outs are at 2, 3 5, 7 10 and I try to leave at least one unit to run.

The one area where I often fail is that I get out if I see an event at 10:00 am EST. Sometimes that event is impetus for a continuation move. I don't like it however so I am usually all out at that time and willing to wait for the next setup.
 
and here is that "next setup"

A test of the longer MA

and a short entry after the failure

Sorry again I could not do this in realtime

But you can compare it to the many other just exactly like it in the previous posts.

Good luck everyone.

Steve
 

Attachments

As you can see, this one failed

I got stopped out

Short entry at 1245.50

One scale out at 1243.50

then it reversed on me and I took the two point loss
for a breakeven trade less commish.

plus 2 on the scale out, lost 2 plus commish on the exit
 

Attachments

I got stopped out on that trade

took a 2 point loss plus commish

Total for the day is 15 points minus 2 points minus commish

Choppy action so I am standing aside
 

Attachments

Here's another concept that may help struggling traders

I call it "peekaboo"

While we still have an S&P pit, you should be aware of the way that locals drive the market. What happens when price consolidates for a while is that locals and institutions move the market above/below a point of consolidation a tick or two. I call this a "peekaboo" move. What it is, is the locals trying to find stops.

They get a quick look to see if there are any resting stops above or below (in this case above) and if they don't trigger a significant move up, they know they can drive it down and they do so with confidence.

Check out the chart
 

Attachments

and another chart to illustrate a couple of concepts happening
concurrently

1.) "Peekaboo"
2.) Test of the 80 period MA
3.) Lower Highs

So my comment here is a simple one. What you want to do is to get enough screen time in, that you see these things and you realize the significance, and you act

The only way to get there is

A.) Scroll through the screens after hours
B.) Watch the screen during RTHs
C.) Collect the data and backtest it

I encourage every new and struggling trader to get into the habit of doing their own research. If you can't verify it, don't trade it....
 

Attachments

You must log in or register to reply here.
Back
Top