Today's Trades on the ES (10-Nov-2008)

My goal is $300/day when I trade. Today I grossed $425.

Total Trades = 18 (1.5 hrs from 1:47 pm to 3:22 pm EST)
Contracts Used at 1 Time = 1 to 2 ($500 margin/contract)
# Profitable Trades = 14 (78%)
# Costing Trades = 4 (22%)
Range of Profitable Trades = $12.50 to $187.50
Range of Costing Trades = $50 to $200

Total Profits = $937.50
Total Costs = $512.50
Commissions = $71.82
Net = $353.18

What are some lessons learned today?

1. I started off on a timeframe that was too fast for me, the 3 min. timeframe. Though I got enough sleep last night, I was feeling a bit sluggish. Perhaps it was that small slice of cranberry walnut bread I made last night, which might have been too foggy?

2. It seemed like I was going the opposite direction of where I needed to for many of the trades, though, most of them still turned out profitably, but when they went against me, which the first 3 were bigger costing trades than they should have, but I was watching the shorter timeframe instead of moving to the 15 min. timeframe.

3. Was watching the "money" instead of the trade. Trade well. Do not watch the money.

4. Know where you are. When I traded where I knew I was, even if it turned against me, as long as my indicators were fine, I continued to stay in and what I was reading WAS correct.

5. Observe trends in your price action, RSI, volume, MACD. When the trend is broken, you need to either get out of the trade. It's good to go to a smaller timeframe to see more specifically when to get out.

6. Verbalize your trades. Everything sounds and looks good in your head, but when verbalized, doesn't often sound too good.

7. Took small profits here and there, which is fine, but this creates more commissions.

8. It helped to have my stops (for taking profits and costs) set and walk away from the computer momentarily so as to not get out unnecessarily.

9. Today I said I would stop trading and I did at the 1.5 hr mark or when I would hit $300. The last trade gave me $187.50, so that was it for me.

10. When things look like I can't figure out what is going on, it's best to stay out of the trade and wait for something clearer. There is plenty of money to be made, I do not need to decrease my chances of profitability.

11. Know where support & resistances are with indicators as well as price action. Check various timeframes. If it's at support for RSI on the 15 min., it may not push further down on the 3 min. and it would not be wise to take a bearish position here.

12. Take a break.

13. Know when you need to physically, mentally take a stop.
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