If you trade, you need to understand that not every setup will give you your maximum gain. It all depends on your exit strategy and mine is not perfect. It will never be perfect and that is something you must deal with. I measure it in R returns of risk. If I have a + 2 R profit, I do not like giving it back. So as soon I see trouble signs, I get out. With the chance, I do not get a bigger profit. So be it.
Trading and investing blog
On this blog, you will find some articles about trading and investing. Thoughts, insights, and visions are shared. Now and then I post a trade for an example. These trades are actual trades in an account that is live. The purpose of this blog is for educational reasons only. I do not provide financial advice. Any losses that come from following the ideas or trades on this blog, website, and/or any other communication from me, is your responsibility. Acting on the principles from this website is clearly with an agreement of waiving any liability to the author of this website.
In the world of trading, there is only one thing that really matters. You need volatility to make money.
The action of the previous day was a warning for a sell-off. But when you know this, what do you look for? You look for a low-risk entry to go short.
Inventories are the things that make you, you.
There are a lot of setups you can use to place a trade with a high probability. One of those setups is what I call the opening wall play.
In part one we talked a bit about the money part of objectives. In a trading plan, having objectives is one of the most important pieces of the trading plan. You should put a lot of thought into it.
What are your objectives?
The title says it all, do you catch the high or the low of the day?
Today’s example is the oil trade. After a bigger selloff, you can expect a reaction back. Orderflow tells you when the buyers are backstepping in. After the reaction back, it goes usually to a level to kiss it goodbye for the moment. So that are two moments to watch order flow. One after the selloff and one time when you hit the level of the goodbye kiss. Both are pretty good tradable as you can see on the chart.
Like anything in life, if you want something to get done, you need a plan.
The hardest part of working with probability is that you can do everything right, and still have an outcome you do not like.
I trade for a living. Period.