Monday, May 27, 2013


1) THE ES trade plan called for focus to be placed on the back of the trade zones on first touch. The WHITE ZONE was originally placed at 1645.25-1647.50. ES opened at  1639.50 & pushed up into the 1641-1643 ZONE.  Responsive buyers stepped in at the middle of the zone & pushed down to the 1636.25-1634.25 zone.  A trade placed from the middle of the 1641-1643 zone yielded a potential 7pt + potential trade and easily hit the 2 points a day I so often talk about on my blog.  All you need is one good trade to build an account.  That is it.

2) Responsive sellers were able to push all the way to the back of the 1636.25-1634.25 Zone where responsive buyers stepped in once again.  Again,  For traders with less aggression the idea is to only trade in the direction of control & only on first touch.  More aggressive traders may choose to trade both directions regardless of control but the risk of a losing trade grow significantly.  The same goes for 2nd & 3rd touches into a zone.  Responsive buyers were able to push ES back above Globex lows & back into the 1641-1643 zone.   I tweeted out that the WHITE ZONE should be moved down from 1645.25-1647.53 to 1641-1643.  In addition I mentioned on twitter that the close above 1643 on a 5 minute bar put buyers in control & trap late shorts.  My focus now would be on the long side.

3) After chopping around for the better part of NY lunch buyers pushed ES up to 1645.25-1647.53 resistance zone. 4) The back of the zone found sellers who were able to eventually push down to the top of the 1641-43 zone.  While on paper the push up & the push back down looked pretty easy I would argue that it was mentally very difficult & required a great deal of discipline to execute.  Both trades simply chopped for an hour or more.  It is exactly this type of environment that chops traders accounts to bits.  Nerves build up over time & small gains are taken by many at best, the trade is entered & exited many times by less disciplined traders racking up unnecessary & painful losses at the end of the week.

4) Finally, Just an example of why I do not fade the last hour.  With 30 minutes to go till the old 3:15 close shorts started to scramble with ES moving up 7.75 points to close on the high of the day.  It also demonstrates the power of the WHITE ZONE.  By knowing who had control & adhering to a  less aggressive risk profile you free yourself from these kind of hits which take a toll not only financially but also emotionally.  Maybe its worth considering.

Looking back on the end of the day my focus & discipline were well rewarded. Did I get every trade? no.  I did however get enough of my setups to top off an excellent week.  Trading like a professional does not mean capturing every move nor does it mean getting every trade right.  It does mean knowing yourself & just how much risk you can financially and emotionally handle.  It means trusting yourself to follow your own rules, what ever they may be.  It is also KNOWING you have an edge.  That means stats are carefully taken, attention to small details, carefully journaling my trading decisions both numbers wise & emotional responses to my decisions.  I do this on good days and bad days.  That is how I survive & thrive as a professional trader.  Its not easy & it takes work but it allows me to accumulate profits and get to play in the market every day.  Wouldn't you like to have that for yourself?  

There are methods & steps to attaining this type of performance.  If you are serious about getting your trading to a consistently profitable level  & are tired of losing money or trading in cycles of boom & bust you may consider contacting me. Individual coaching can be highly effective in setting you on the path to success & ending destructive patterns in your trading.  I offer an introductory rate of $200 for 3 one to one coaching sessions that have helped many get on the path to consistent profitability in trading.  You may contact me at TRADENPERFORM@GMAIL.COM

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

No comments:

Post a Comment