My virtual trades on the ES as followed, all based on price action and volume.
26 Jan 2010 (Tuesday) - Profit = $187.50
Regards,
Tony Chai
Saturday, February 6, 2010
ES Trading - 26 to 29 Jan 2010
Dear fellow traders :
My virtual trades on the ES as followed, all based on price action and volume.
26 Jan 2010 (Tuesday) - Profit = $187.50
27 Jan 2010 (Wednesday) - Loss = $300.00
28 Jan 2010 (Thursday) - Loss = $75.00
29 Jan 2010 (Friday) - Profit = $212.50
Regards,
Tony Chai
My virtual trades on the ES as followed, all based on price action and volume.
26 Jan 2010 (Tuesday) - Profit = $187.50
Regards,
Tony Chai
Thursday, February 4, 2010
ES Trading - some thoughts
Dear traders :
In my current strategy of trading the ES, I'm risking a 3 points loss for a 1.25 to 1.5 point profits per contract.
I know in the long run my return of investments would be negative as you'll realize the risk is double the profit target in the risk/profit ratio.
But I come to realize there's no fixed rules of entry and exit in trading. In other words, there's no holy grail in the world of trading where you enter in a perfect setup, target a perfect exit and eventually attain an expected, perfect profit.
Even though I set my stop loss at 3 points, I don't let my trade run to that amount of loss unnecessarily, unless it happened real fast and I know I will lose more if I didn't even set the 3 points loss in the first place. Having said that, when any of the price action and volume signals tell me that my original trade no longer works, I will get the hell out.
Though I mentioned a profit of 1.25 point per contract, this is not a fixed figure I've targeted. 1.25 point profit is a realistic figure to attain in the current ES trend. This profit target will change as the ES trend changes, and we all know it'll change. As traders, we simply have to adjust. I tend to grab more points in a reversal, where the movement tends to be strong currently. Naturally, this will also change in the future.
Another thing which is obvious but worth mentioning is to enter a trade with the highest probability setup. It may be a setup that you've learned or one which you've devise yourself. You know very well how it turns out when your impatience strays you from trading based on your setup rules. Trade strictly according to your setup, even if it means taking much less trades than necessary.
Just my 2 cents worth.
Tony Chai
In my current strategy of trading the ES, I'm risking a 3 points loss for a 1.25 to 1.5 point profits per contract.
I know in the long run my return of investments would be negative as you'll realize the risk is double the profit target in the risk/profit ratio.
But I come to realize there's no fixed rules of entry and exit in trading. In other words, there's no holy grail in the world of trading where you enter in a perfect setup, target a perfect exit and eventually attain an expected, perfect profit.
Even though I set my stop loss at 3 points, I don't let my trade run to that amount of loss unnecessarily, unless it happened real fast and I know I will lose more if I didn't even set the 3 points loss in the first place. Having said that, when any of the price action and volume signals tell me that my original trade no longer works, I will get the hell out.
Though I mentioned a profit of 1.25 point per contract, this is not a fixed figure I've targeted. 1.25 point profit is a realistic figure to attain in the current ES trend. This profit target will change as the ES trend changes, and we all know it'll change. As traders, we simply have to adjust. I tend to grab more points in a reversal, where the movement tends to be strong currently. Naturally, this will also change in the future.
Another thing which is obvious but worth mentioning is to enter a trade with the highest probability setup. It may be a setup that you've learned or one which you've devise yourself. You know very well how it turns out when your impatience strays you from trading based on your setup rules. Trade strictly according to your setup, even if it means taking much less trades than necessary.
Just my 2 cents worth.
Tony Chai
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