Iâm avoiding setups like trade#1, but overall Iâm happy with my trading. Trade#1 â Wanted to test the strength of the retrace of the LOD. Went short at the first sign of resistance but I was proved wrong on a continuing downside follow through. Covered position immediately to regroup! *Short 1116.50 - 10:17 EST Stop: 1119.50 Target: 1114.50 *Cover 1117.25 - 10:57 EST [ P/L: - 0.75 ] Trade#2 â Price lingered in the 1117 resistance zone for over an hour without retreating back to the downside. After price broke my trendline I decided to get long as this could be a possible change of trend! Set my profit target around the open. Entered on time with this trade. *Long 1117.50 - 11:38 EST Stop: 1115.50 Target: 1120.25 *Cover 1120.25 - 11:45 EST [ P/L: + 2.75 ] Trade#3 â Took small divergence signal on 3 minute in the resistance zone from yesterdayâs high. I realized this trade was going to take some time considering the lunch hour was approaching. Although ES traded higher a bit my divergence setup was still intact and we didnât have a breakout. My initial profit target was the open at 1120.25 but I reset it after having a lack of patience. I wish my entry was around 1123.50 on my second divergence signal. *Short 1122.50 - 12:22 EST Stop: 1124.50 Target: 1120.25 *Cover 1120.00 - 14:30 EST [ P/L: + 1.50 ]
Incredible patience on the last trade !! I was in the same trade but got out WAY too early. Glad to see you focusing on those divergence trades. I believe they are for you. You'll only get to know them better and better. See you in the room.
Awash: Most of your stops are bigger than the profit targets. Is there any reason why you are using this practice? I think you need to have a high win/loss ratio to make profit, don't you?
ADX_trader, Youâre right, most of my initial stops are larger than my profit targets. Iâm fully aware of the basic risk/reward principle but I donât make it standard practice to follow it. In my opinion, you donât necessarily need to have a high win/loss ratio to make a profit! This weekend, when I have extra time I will attempt to explain my reasoning for initial stop placement and how I find it effective for me. Nevertheless, all constructive criticism is welcomed!
I was a bit impatient on a trade or two but overall I'm okay with my trading for today. Trade#1 â Price trickled down after its premarket run-up to a high of 1130.50. We had an opening low of 1126.75 at 9:32 and price bounced off that level pretty quickly back to the open area. I decided to test the strength of that low when price returned back to the downside but I didnât enter on time. I was suppose to be in the market by 1127.75 before the low but entered at the low and decided to cover out of frustration for being late. *Short 1126.75 - 9:44 EST Stop: 1129.75 Target: 1125 *Cover 1126.75 - 9:47 EST [ P/L: 0 ] Trade#2 â Price continued to show a lot of downside momentum and I just wanted to stay with the predominant direction. Went short on time and set a descent target banking we would break the previous low of 1125. My profit target was good but unattainable after a positive divergence signal generated, covered at first sign of divergence! *Long 1126.00 - 10:11 EST Stop: 1127.50 Target: 1123.50 *Cover 1124.25 - 10:32 EST [ P/L: + 1.75 ] Trade#3 â Took a positive divergence signal but at a bad price, decided to hold but ran out of patience because I was watching my bid/ask screen too closely. I didnât deserve money on this trade! *Long 1126.00 - 11:09 EST Stop: 1123.50 Target: 1128.75 *Exit 1126.00 - 11:29 EST [ P/L: 0 ] Trade#4 â Played a negative divergence signal late in the afternoon but got over zealous on my profit target. I was a bit more patience late in the afternoon but should have been more patient earlier in the day. Reset my profit target when price went in my favor and got stopped out as price traded higher. *Short 1129.50 - 15:35 EST Stop: 1130.75 Target: 1127.75 *Stop 1129.25 - 15:54 EST [ P/L: + 0.25 ]
I stayed disciplined throughout the trading session and focused on trading with strict caution during the small range. Trade#1 â Price traded higher at the start and hit my first resistance area of 1124 and retraced. I decided to get short around my pivot of 1122.50, 1 point prior to test the strength of the open. We traded below the open and hit my target for a quick two points. *Short 1122.50 - 9:47 EST Stop: 1124.25 Target: 1120.50 *Cover 1120.50 - 9:53 EST [ P/L: + 2 ] Trade#2 â Took small divergence signal on my 1-minute chart and I wanted to test a potential breakout above the 1124 price area. I quickly reset my stop 1 tick in my favor but as price continued higher it quickly retreated and hit my stop. *Long 1122.75 - 10:54 EST Stop: 1120.75 Target: above 1125 (on breakout) *Stop 1123.00 - 10:59 EST [ P/L: + .25 ] Trade#3 â No signal but rather was convinced the market would retreat based on heavy downside price action. Once price moved 1 point in my favor I decide to reset my stop to protect my position. However, my stop was hit! *Short 1122.00 - 10:59 EST Stop: 1124.50 Target: 1119 area *Stop 1121.75 - 11:10 EST [ P/L: + .25 ] Trade#4 â Entered short off reliable resistance zone of 1124.25, confirmed a bit later with a negative divergence setup. However, s/r setups take priority over divergence setups on range days only. My target was the open but I covered 1 tick before it. *Short 1123.50 - 12:28 EST Stop: 1124.75 Target: 1121.50 *Stop 1121.75 - 12:46 EST [ P/L: + 1.75 ] Trade#5 â Price didnât breakout like I thought it would and I decided to enter short, confirmed a bit later via negative divergence signal. Next time I wonât be too aggressive on the short side. Price action finally moved in my favor and I reset my stop. I also missed judge a few support levels before my target of 1121.50. Will study a few S&L patterns. *Short 1124.50 - 14:04 EST Stop: 1125.50 Target: 1121.50 *Stop 1124.25 - 14:51 EST [ P/L: + 0.25 ]