Click on chart for a larger chart picture. Today we had a breakout in the afternoon, but our entries did not work out. This happens at times. We get a valid signal, nice volume, but ol momo doesn't want to come along for the ride.
What do you do when these times happen? You either tread water waiting for the next trade, or you could even possibly take some time off waiting for the market to pick up again. With that being said, you tighten down your entries only looking for the best possible setups and trading them.
In the long run, trading is a numbers game when you are trading a trading method. You have to take the good with the bad. You will have draw down periods followed by gain periods, then breakeven periods. Your overall shape of your equity curve over time should be in an upward pattern, but with this being said, you can't SWEAT the SMALL stuff.
If you have a valid trading method or system, then trade it. Do not be afraid to adjust to current market conditions, as not everything goes in a straight up pattern.
Trading is not like movie, Back to the Future, where we can tell someone what to do. What we can control is our entry point, our exit point, and the size of contracts we will trade on each trade.
When you are first starting out trading one contract, I personally believe that this is the hardest thing to get yourself to the point where you can add contracts. Because when you have additional contracts, you can always scale back, but when you are trading one contract, there is no such thing as 1/2 of a contract.
My advice for what it is worth, is to be patient, disciplined, and self-controlled. Trust in your trading method, and allow the numbers game to work in your favor.
Good Trades,
David AKA Tiger
Click on chart for comments on the ES market trade. Here is the trade that we waited all week to happen. It was a very nice trade after treading water basically all week.
