Tuesday Log - Work on Risk / Reward

Today was more of the same as far as not letting trades work. Once price could not push through yesterday high, saw short opportunity but got in a bit late and then did not let the trade work. More conviction needed. A three point stop would have worked. Result: +.5

Two other trades were scratches as both would have worked with 3 point stops. Tried a couple of entries with stop limit but seems to work at low of range when going long and high of range when looking short unless a breakout is expected. Result: -1.0

In order to supplement this diary, today I put together a spread sheet to improve tracking my MO & DLTW trades. By tracking these types of trades, the result should be to develop more confidence and conviction with my trades.

Also, thanks to FuturesTrader71 for sharing his risk / reward methodology with me. He is really quite good at calling out various TA observations and how he enters and manages his trades. I found it VERY insightful. Although there is some variation and discretionary management of positions, the following is how he managed a trade in the AM session:

Entry: 942
# C’s PO Size Taken Off B/E
12 940.0 1/6 942.5
10 939.0 1/3 944.5
6 938.25 1/6 948.0
4 936.5 1/6 959.5
2 runner 1/6 964

Obviously there is more leverage when working with more contracts. Pick the best trades and manage the trades properly and the P&L will take care of itself.

Trade Well !