ES Journal - 2015

Your stop is too large for a day trade

 

DT UM Long 2056.75 Initial stop 2053.25

 

Stopped out for loss of 3.5 pts

 

And now you see why close stops using high margin, is the right way to daytrade. In fact, my second stop was really too large

 

DT UM long 2041.25 Initial stop 2038.25

 

days like today reminder us why small stops should be used and yes momentum trades require smaller stops but I believe your entry was during chop so slightly larger stops are used.

 

Stopped for loss of 3 pts.

 

DT Long 2039.75 Initial stop 2036.00

 

epic head fake, long 2040 sl 2038

 

The beauty of using small stops is that we go to the sidelines, and we review. Then we may able to use our full position at much lower prices as we could today. Trades may not work out, but trade 3 was able to be entered at 12 points below where were stopped out on trade 2.