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From the 5 minute perspective I was only ready to a short position.
The market established a new high for the day at around 9:37, but formed an inverted hammer. The next 2 candlesticks indicated a move lower. I hadn’t traded Lean Hogs in a while so I hesitated to put in the trade and waited for the next candlestick. Took the short trade with a 3 tick stop. Market moved favorably. The black line is a zone of support which I anticipated the market to either bounce off of, or push through to establish new lows.
Good trade overall.
Market: 5 Year T Note
Trade: long
Reward-to-risk Ratio: 4:4
Risk percentage: 2%
Trade Rationale:
Ignore the regular arrows, the drawn in arrows are where I entered and exited the market.
From a long term perspective, the trend was upwards. The market appeared to be in the upward swing so I entered a long position. Due to my trading style I was only looking for a few ticks.
5 Year Note also moves very slowly and I was in this trade for about 40 minutes. This is much longer than I normally am in a trade for, but I expected and was fine with this. I had to go out of my way to not overreact or overthink it. Good trade overall.
Can you help answer these questions from other members on NexusFi?
Took a 2 tick loss on Lean Hogs by being very stupid and taking a short position on Lean Hogs. Reasoning is irrelevant because I was physically in a location I could not concentrate and it was stupid to even attempt to trade then
9/28/17
Market: Lean Hogs
Trade: Short*
Reward-to-risk Ratio: 3:3
Risk percentage/outcome: 1.8%, 3 tick loss Trade Rationale: Market was trending downwards, so I entered a short position. Rationale was not completely wrong, but with limited funds, my tight stop was blown by and it took the market longer than expected to push down.
Market: 2 Year T Note
Trade: Long
Reward-to-risk Ratio: 4:4
Risk percentage/outcome: 1.8%, 4 tick gain Trade Rationale: same as above, there was a trend and I wanted to follow it. I waited for the market to established higher lows, then got in as it began to push higher. Hit my take profit and went quite a bit further. Excellent trade.
My highest profit rate seems to be when I prep out an expectation ahead of time, and wait for the market to react in my direction, and this trade was exactly that.
Sorry about no pictures, forgot to take any after the trades.
Trade Rationale: Market was trending downwards, so I entered a short position. Rationale was not completely wrong, but with limited funds, my tight stop was blown by and it took the market longer than expected to push down.
I don't know how to imbed videos on the site, so here is a link to the video for the trade, not live however.
Trying out a new market from now on. I'll be trading the e-micro Euro FX, which functions like the EUR/USD for a currencies perspective.
Market: e-mini Euro FX
Trade: Long
Reward-to-risk Ratio:*8:8
Risk percentage/outcome: 3%, 8 tick loss
Trade Rationale: Market was consolidating, and I took a long position where it appeared the market would bounce back up, even if only for a few ticks. Market went in my direction for a little, then completely reversed.
Note: I accidentally traded the e-mini, instead of the e-micro Euro FX.
Market: e-micro Euro FX
Trade: Short
Reward-to-risk Ratio:*10:10, 0.7%
Risk percentage/outcome:, 10 tick gain
Trade Rationale: After the trade above, I re-evaluated the market and I took the smarter trade, recognizing that after notable consolidation, the market tends to move in the same direction as it was previously. I waited for a little pullback before I entered the trade.
Market:e-micro Euro FX
Trade: Short x2*
Reward-to-risk Ratio:*7:7, 5:5
Risk percentage/outcome:, 7 tick gain, 5 tick gain*
Trade Rationale: Both times market reacted off resistance levels, took the opportunity to go short. Set my take profits more akin to my stop, but I also took note of potential levels for reversal.
Reward-to-risk Ratio: 8:8
Risk percentage/outcome:, 8 tick gain
Trade Rationale: Initially set a take profit of 12 ticks, later realized that was the wrong way to set it up, because the market was in a channel. Changed it afterwards to reflect that. There was a lot of mental stress with this trade to be honest, and it took much longer than most. Happy it was profitable, and acceptable management in the end.
Reward-to-risk Ratio: initially 7:7
Risk percentage/outcome: 1 tick loss
Trade Rationale: Initially tried to take a short trade, which is fine if I just accepted the bullishness of the market for the day and taking a very quick profit. However it reversed (obvious this would happen) and manually removing myself from the trade was a good decision.
Trade: short
Reward-to-risk Ratio: initially 12:12, changed to 5:5
Risk percentage/outcome: 5 tick gain
Trade Rationale: Market broke weak support, decided to ride the bearish day to next key support level.
Your reward to risk ratio is wrong. If you are risking 5pips to make 5 pips it’s a 1:1 Risk to reward ratio. If you risk 5pips to make 10 it’s a 1:2 risk to reward. Normally traders talk about it or type it in reverse so I might say “I only take trades with a 2:1 RR” meaning I only take trades with a target twice my risk.
