Trading a trending market is easy. You appear to be working at being a trend trader, as it appears you trade long or short depending on the Pivot. So when you can find a trending market 4 out of 5 days then trading that market will make for an easier trading life. I do not believe in learning to trade only one market. If you have a good complete trading system then if you are a trend trader you can make more money trading the markets each day that are trending. Today trading CL was an easy money making day.
Why do you only trade from 930-1130?
I trade from 2am-3pm CST so I can capture the London and NY secession. Some days the best setups occur during the London session and some days they occur during the NY session.
Also you are limiting yourself by only allowing yourself to make 3 points a days. This is a business so treat it as such. Do you think that Wal-Mart says today we will make $100k and then we will close the doors until tomorrow.
I only trade the ES because its what I was first introduced I was told you should learn the characteristics of the market you are trading and Im still learning its ways
Usually the other futures markets seem to be following what the ES is doing or maybe vice versa but the chart patterns look similar around the same times
Ive never tried to trade 2am-3am which would translate to 3-4am where im at! What instruments do you trade? are there any signifigant differences? hows the volatility at night! I have noticed on charts it looks like there is activity around that time but i didnt think it was signifigant please give me more info on this
I only trade for 3 points for a few reasons when I first started trading I had a problem with over trading, with a 3 point goal it cures that and makes me more selective on what trades to find, its also a realistic goal and technically my goal is 3-5 points a day! sometimes i hit 5 sometimes i dont but 3 keeps me satisfied I dont wanna lose being greedy! I find it relaxes me to turn my system off for the day!
Also I generally win my first trade about 80% of the time I can guage it properly to atleast get a few ticks but usually it will hit my targets the ideal of a 80% success rate is appealing to me considering all i have to do after that is NOT give my money back and what better way then to not even participate
keep in mind these are my own theories and I am open minded to any suggestions on changes I should make!
Favorite Futures: currency and index futures, grains, bonds, oil, gas, metals
Posts: 51 since Mar 2012
Thanks: 6 given,
ES, EMD, NQ, TF, AND YM tend to move together. I watch/trade all of them looking for the first one to make a move, and then look at the others to see if they are setting up with a similar move and setup. sometimes they all move at the same time and other times the moves are spread apart so I can enter several trades in succession.
currency futures seem to run on their own during the night/early morning, but when the US futures market opens, then they tend to be affected by the index futures and often run in the same direction for the first hour or two after the futures market open. I watch/trade currency futures US vs euro, pound, canadian dollar, swiss franc and yen.
I am just watching crude and natural gas for this year, similar to you in trying to learn more about them. It takes me up to a year of watching and sim trading before I trade live. will probably start trading them in realtime next year.
Watching/trading 10-12 symbols can be taxing. I usually trade from 5am pst to 9am pst. After that I watch and trade only when there are good moves in the market.