I hope you watched my video from yesterday because today was the day to show the strategy works! I only traded low volume nodes with order flow today. I had some problems with my video recorder crashing but did manage to do a review of the day’s trades with some live snap shot of entries. Check it out – what a day! Sorry about the missing screen shots in the video – you would think you drag a pic over while you are recording the screen and the recorder picks it up – NOT! Screen shots below.
There are a lot of ways to add to a position in trading. Some folks do it when the market goes against them – trying to better their position by averaging. So if they buy at 67.11 and the market drops to 66.80, they will add hoping the market turns. The problem is this type of trading can go really bad really fast. In this video, I add to the position as the trade moves in my favor. I enter on a high volume node trade print from NodeTrader on the 2 minute chart. I don’t typically trade low volume nodes on the 2 minute time frame so had those trades turned off, but when I recognized the setup (hey, I don’t need the prints I created them lol), I added to my position. Then when the 300 tick chart gave an entry after another move higher I tried to add but no fill. Finally, I added on another print on the 2 minute chart. My profit target I clearly established at 2 standard deviations early in the trade and that didn’t change – I took all the trades off there. Watch the video and if you think you can’t trade like this – THINK AGAIN. You can TRADE LIKE THIS.
A nice high volume node short set up Sunday evening that I couldn’t pass up. The trade took about 90 minutes – you can watch it in 5 – and nope that’s not Market Replay for the doubters – just check out the clock which I place in all my videos now. Can you see a trade print on the screen and enter the market, place a stop, and take some profit at clear targets? I think you can!
ValuTrader NodeTrader Results
February 3, 2015 – Entire Trading Session Video
Want to see the difference between a real live trader and a machine? The first statement is my trading which coincides with the video link above. The second statement is from the Auto Trader all on its own. It barely had a loss! But my wins were much larger. Man or Machine? Which is better?
Check out the video of the trade I took this morning CL Trade and then the FOLLOWUP VIDEO of the reason behind taking the trade. Need help with your trading? Could you have taken the trades in the video? NodeTrader gives you everything you need to be successful – a stop, the proper position size, an entry and targets. The NodeTrader ATM can even take the trade automatically and manage it for you. OUR RESULTS
Let’s face it – we wish all our trades could be winners. What separates the men from the boys as it were or the successful from the unsuccessful is how you handle a losing trade. Anytime you take a losing trade it can break you – mentally, emotionally and financially of course. The key to limiting those debilitating outcomes is to trade within your reality. What I mean by that is to trade within reasonably established industry parameters – those that successful peers in our industry employ to trade every day. I like to find my reality by answering 3 questions:
1. How much am I willing to lose on the day? – Professional trading firms and funds typically limit this to 2% of your account. That let’s you be wrong many, many times before your account goes belly up. So if you have a $5000 account – guess what? You can only lose $100 on the day. Are you trading futures? Forget about it. Try trading Forex with Oanda for instance who will let you trade down to the unit level. The answer to this question lets you live to trade another day.
2. How much am I willing to lose on a single trade? I like to take the answer to question 1 and divide it by 2, 3 or 4. The reason for this is if you risk the day’s acceptable loss on a single trade and the first trade of the day is a loser (like it was for me today – Results Page), you are DONE – KAPUT – FINISHED trading for the day. If you risk a portion of your daily loss, then you can afford to take another trade. The answer to this question lets you live to take another trade.
3. After how much gain will I quit trading? Many people I interview answer, “As much as possible.”. I believe that is a recipe for disaster. It leads to over trading and feeds the GREED. Do some research and you will find the average hedge fund last year made just over 10% for the YEAR. So if you get to 1% on the day – that is a fantastic day! Quit trading. I believe a good daily range is .25%-1% of your trading account – the lower the better. Many argue that since they are only trading a $15,000 that this is not enough to pay the bills, but that is the reality of the matter. Qualify to trade with a professional firm and trade with much more leverage but don’t over-trade, over-risk, or over-extend your own account – small or large because the professional firm is surely not going to let you do that to their account.
Trading is challenging and rewarding. Give yourself every advantage possible. If you don’t know the answers to those 3 questions – find them and live by them. If you need help position sizing, drop me a line or contact me on Skype.
I just got back from my week long trip to Montana. What a beautiful state and what a beautiful town, Whitefish, that my folks live in. Last Monday we arrived just in time to witness the most snowfall they have ever had in a 24 hour period! Awesome for us – not so much for the snow shoveling residents – lol. We did some snow hiking, tobogganing, and skiing. This trip reinforced for me that we all need a break from trading to find our center and refocus our energies. I did leave the NATM NodeTrader Auto Trader on in simulation all week long with some pretty tight parameters. I set it to risk $800 a trade and to trade all week long from 0600 CST – 0900 CST. I also allowed it to take an HVN trade Sunday evening and manage that to completion while I was away. Here are the results and I look forward to trading the rest of this week:
Here are 2 videos from this morning’s session of the January 2015 contract of CL.
What one man can do…another can do
That is a famous line from the movie The Edge with Anthony Hopkins – worth the watch. If you missed the NinjaTrader webinar on NodeTrader and haven’t started trading with me yet – ugh, why not? Take a look at yesterday and today HERE. If you didn’t have these excellent trades or trading results, trust me that is easy to correct, just do what I do. What one man can do another can do. Here are a couple of charts from today and the results.