Dow Scalper Emini Trading System
Not every day I press record but I am glad
when I do, there is something to talk about.
Emini Trading today using the Dow
Scalper Emini Trading system was much better than yesterday. Gone was the chopping type of action and was
replaced by price moves that made trading easy.
The YM really did what was expected and you hear me talking about it
during the video.
It was not all rosy though. I was a little premature on a buy but it
leads to a very important point.
Trading Does Not Stop Upon Entry
Risk management is not something to take
lightly. Neither is the ability to
understand price and knowing when your trade is in trouble. Note in the video how I zero in on a resistance
point and when price is not breaking through, I bring in my stop to cut
risk. It gets better. Watching the lack of buying coming into the
market, I quickly lock in some profit and then the market retraces, takes me
out and continues past the original stop.
The next buy zooms right to target.
Right idea…just a little early.
The key point is your reward to risk is not
only important before the trade, but during it as well. This trade was up 6 points at one time while
my stop was still 8 points from entry putting my stop 13 points from the
price. Moving it in was a no
brainer! The risk became horrible for
the reward of 8 which was only 2 points away.
Am I going to sacrifice 13 points to make an extra 2? No.
When price was showing zero follow through, it was not fear of a loss
that has me move price in….but a professional approach to trade
management. There IS a difference.
Have Reasons During Trading
I had reasons that go beyond fear of loss
to move my stop up. Price was at a
resistance point on a rally off a retrace and was not breaking through. As the candlestick was forming, you could see
the selling pressure coming in. Two
points from full profit and bears taking over, locking in profit was the only
option. Will you always be right? No.
Can price pick you out of the trade and then explode in the intended
direction? Yes. Is managing risk and protecting your account
your priority? Yes. In trade management is super important. Do not neglect it.
