Phase 1 -- Theme is how newbie traders think Overtrading, Grasping, No stops, Don't want to be wrong. Phase 2--Demonstration of trader beginning to realize that stops must be placed. However, due to wanting to be right, stops are placed way away from the market so as to give tremendous leeway in hopes of being correct. Trading slows down but sophomoric trader still takes experimental trades without regard for bigger picture and the current trend. Phase 3-- Theme is Socratic with trader asking questions like "Wouldn't I be better off just taking a real small loss and taking a full profit target. Trader begins to realize that commissions play a huge part in profitability and success, Trading slows a bit more and the trader realizes that perhaps just one or two trades a day or a week using high leverage and small stops is all that is needed to outperform the market. Occasionally, but increasingly, trader follows prudent money management rules. From time to time trader gets stopped out for small loss and gets right back in for huge success. Phase 4--Trader is now accepting the fact that he can be wrong a lot and be a winner. The individual trusts his rules 75 to 80 percent of the time and is rewarded thusly. During this phase, the trader realizes that there is no perfect entry and exit system and that his ability to control losses and obtaining full profit targets when right are his edge in this business. Trader begins to see snake oil for exactly what it is. Trader commences acceptance of the bigger picture and looks at longer time frames first before deciding upon entries on smaller frame charts. Trader removes most of the emotion from trading. Phase 5--Trader follows rules 100 percent of the time. Trader trades with no emotion. Trader views endeavor as business. Trader exercises tiny stops and very prudent money management techniques. There is no question concerning trader's success in the future.
With this is mind, I would now like to look at the trade from today. 4 hour not complete when trade was entered, but it certainly wasn't ringingly positive. 60 min chart in downward trend and not yet oversold. 30 min chart showing same signs as 60 and certainly not oversold. 15 min chart in downtrend. 5 min and 1 min charts attempting a bottom and they were oversold. What we know though is that although a few points might be able to be made when the trade was taken, the signals are more likely a bounce rather than a new trend. So we would be better off waiting for a short term trend change upwards before taking longs.
The correct stop for today's trade would have been 2086.75. It's best to keep stops at 2 pts or less in ES when daytrading. Profit target should be at least 6 points preferably at least 7 if using targets.
Are you on demo? That would make you get a fill at previously mentioned price. Just want it clarified out of concern for others, since you're risking more than 2% of a $20,000 account.
No, not on demo. Remember that I don't risk more than 2 percent of Total Liquid Net Worth not the account size. I use stop limit orders the vast majority of the time.
The 240mn BB channel continues, 94/98 continues to provide a channel ceiling. The 120,90,60min continue point up. We appear to be awaiting news?