Thursday, September 3, 2009

Thursday 09/03/2009 - Range-Bound (again)

Today provided a few good trade opportunities but timing is always critical, and if you missed the entries, then best bet is to avoid the chop. Today was Day 2 where the day session remained within the Globex/over-night range. Again, fading the extremes would have been profitable.

I look at charts on ThinkorSwim during the day when I can take a break from work, and will put on a trade using their Simulator if I see a good area for entry. I went Long 3 contracts at 996.00 around 2:00 PM (central) and scaled out at 997.00, 998.00 and 1000.00.

Employment Situation out at 7:30 AM (central) tomorrow morning.

ES - 5-Min Chart for Wednesday 09/02/2009


  1. One thing I would suggest is always think of R/R (risk Reward) ahead of time you bought at 996 but what was your risk????? what was your reward not much??? When I put on a trade I like my reward to be 3 4 5 times as much as my risk ..... perhaps a better trade would have been buy 992 y's low overnight low 2 point stop and get 5-6 points =) .... just my .02 ... thinking around this terms will make you avoid chop and generate better trades.

  2. Thanks for stopping by the blog!

    Totally agree, but since I'm working full-time these days, I can't watch the charts all day, so I take what I can as long as it meets my risk parameters.

    My max risk on any given trade is 2 pts. The target was 999-1000 area on this specific setup, so 1:2 risk/reward but the market was being very choppy so I started scaling out. I may have held if I could monitor the trade but had to leave for a meeting so figured I'd lock in some gains, put in a break-even stop on the remaining position and then check it in an hour. When I came back to my desk, ES was trading around 1001 and I bailed at 1000.

  3. Here's a post I wrote on Risk/Reward earlier this year in February titled
    R:R is the Holy Grail

  4. wrong... you wanna think bigger locking gains like that will generate you more loosers in the long run when I put on a trade I barely watch monitors anymore as I know what my risk is!!!! You have to be comfortable with the losses and letting winners run as you said trade at specific places and give trades TIME to work......

  5. I enjoy reading this blog as those were some of the same mistakes that I made on my earlier days which made blew my account out....

  6. I appreciate your comments! Will try to improve the R/R


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