The secret to consistent and profitable trading no matter what approach you use for trade selection is to never stay in a trade when it breaks back through your entry point by more than 6 ticks. I came to this Elite Trader site to clear up a matter I was told about and after I had done that I began reading some of the threads. Over all the years I have been in this business (now going on for 23 years) I have just about witnessed everything anyone could dream up. Seems to me that most people who lose money when they start out do so because they do not understand the first rule of gambling. PROTECT YOUR CAPITAL! I am not here to solicit trading principles to anyone but while I am here I can give you a little bit of advice and if you take it on board you will save a lot of heartache if you are contemplating being around this business for a long time. 1. Watch the news services constantly. 2. Bloomberg is a good one if you are trading the ES. 3. Don't buy or subscribe to newsletters that make forecasts. 4. Wait for trading setups and enter your trades when everything is in your favor. 5. Take what is there and don't try and hit home runs. Each day the market opens it sets a benchmark for the day and gravitates up and down from there depending on the mood it is in for that particular day. Traders have habits and as the market moves from level to level they are forced to make decisions. The first decision is am I winning or losing so do I risk losing more or do I stay with the trade. If you stay with any losing position you risk ruin and lose the opportunity to identify new situations from which making a profit is easy. So if you can understand that the only way to give yourself a reasonable chance of making money is to cut positions quickly if they are not working you will be doomed to failure.