Hello, Today is Monday February 23rd and the market is still trading while I write this, currently up 3 S&P points.
So far with 30 minutes to go, the market is holding up. The volume has been so slow, just now at 1 million contracts and 30 minutes to go. I can not remember a regular session being that slow, even back during the holidays. With low volume and movement, you have less opportunities to profit. That is why I feel it is important to be able to scalp a few points out of small trading ranges. Often, that is all the market is going to give you. You can always elect to sit it out and wait for things to improve but if you don’t have patience enough to do that, you may be tempted to trade in an environment that you are not trained for. The best course of action is getting trained for it, so that if you find yourself in it, you will know what to do and how to do it.
Scalp trading is not for everyone, that is true. It can be better for some to wait for moves that are for several points, but as I said, you don’t always know when they are coming. If you blow your opportunity, you may have to wait now for hours. Do you have the patience to do that. The answer for many is “No”. That was and is my answer too. I don’t want to wait for two hours to take one trade and wait another 2 hours for the next trade. I don’t need to hit a 3 to 5 point trade to come out on top. Three one point trades counts just the same and with the trading leverage tied to the emini’s, you really don’t need much. To me, two to four points per session is plenty. If you can average just the two points per day, that is 40 points in a trading month. Some days you will have more points and that can make up for the days you get stopped out for the day. I have a 4 S&P point daily stop out point. This ensures that if I am having a bad day, that I don’t do any really bad damage to my account. Getting the upper end of my daily trading goal, is always nice at times. This also protects me from any day that I may come up short.
I was working with someone earlier this morning who was having a little trouble. After our session, he saw things much clearer and had a new sence of confidence, always a good thing. His confidence reconfirmed in the method he had learned and trained on, but needed a little guidance and one on one time. After our session he took three trades for 3 points in an hour. I felt happy for him, but better than one days profits, he has a clear picture of what he is looking for and how to go about getting it.
In todays trading, I took a few trades, nothing earth shattering and could have done better, but it was enough. Trades are as follows; flat, +4 ticks/+5 ticks, -1 tick, +2 ticks/+2 ticks, +2 ticks/+1 tick. The last trade was the only counter trend trade that I took and am trying to take less of them these days. The bigger move came from just above my last trade short and was what I was seeing, but decided to not trade any more and let it go. Tomorrow is another day.
Just a reminder, it may still be a little while before I get the “Free Book on Concentration” up on my website. If anyone wants it now, just email me. It is very good. It pertains so much to trading and what we do, that I am sure it will help every trader who reads it with an open mind and applies its principles. When you start reading the first chapter alone, I believe you will be impressed.
Day Trading has much more to it than getting the entries down and knowing where to exit. You will discover so much more about yourself than you ever thought you could. Some of it good and some of it, not so good. It will bring to the surface all of your weaknesses and expose them, to yourself. Unless you know what to do with that and how to adjust, you will eventually be working against yourself. Why would we allow ourselves to do this. Well, many traders do not realize how the mental side of trading is always at work here. The path of least resistance is to do the wrong thing at the wrong time.
Having the mental clarity, focus and mind power to do what you should do and when you need to do it, is imperative while trying to trade the markets. If you find yourself listening to competing voices in your head, second guessing yourself about every trade, not allowing the market to work for you instead of against you, as so many traders end up doing, you will struggle.
I too have to watch myself in this area and need to be in the right state of mind when I trade. So, as I have stated before, I am often times talking to myself while I am sharing with my readers. I know what it is that I need to do and want to be sure not to go outside of that. If I am in the red, I am very confident that I will come back, but should not be looking at or dwelling on my past loss at that time. Traders to often, trade with their P&L in mind. It is hard to have the right perspective when money is on the line. The best place to be in when trading, is not having to need the money. If you need the money and the trade, you will be trading from a position of weakness, not strength. That is a mindset and often an economic reality for many. Try and get yourself out of that position and trade from a position of strength.
Mental preparation can make all the difference in the world. I strongly encourage any trader who is serious about making consistent income from the markets, to get my free book. If the book is all you want, that is all I will give you, if you want some advise, I can give that to you as well. (Free)
You have a lot to gain, if you have not considered the real impact, the power of your mind can have on your trading results. You have everything to gain and nothing to lose from asking for it. I have sent it out to some who have requested it and will report back here on how they liked it and how it has made a difference in there trading.
So, until then, Good Trading.