Trading Too Often

Not all trades are created equal. Some trades are "surer" than others. Some trades have a higher profit potential than others. If this is the case and it is, why isn't it better to in the beginning, or always, only trade these types of trades?

Well, it is better. In fact, it's probably the only way to get to CP from minus. Until and unless you can qualify a trade into these classifications, CP will probably be elusive.

This attempt at classification brings it's own problems. More uncertainty. The more uncertainty the more probable it is that you will take large losses and small profits which, even with a more than 50% win rate will make it hard to be CP.

Now getting back to my trading plan, I have said that my main requirement in putting on a trade is that it will hit it's first logical scale out point, which of course, being logical, will be large enough. Now if that first logical scale out point is right against, say a resistance, then I will not only scale out but exit the whole position. Again, to trader like this and have my drop dead stop well out of the way, I need a high win rate. How do I get a high win rate? By taking "surer" trades, trades that I have defined in my trading plan, not by rigid mechanical requirements but in terms of order flow.

These are the things we will spend time on in the training. The most valuable part of the training will be what comes after the end of July. The 90 days when I will help the attendees to nail down their road map and initial trading plan that, if followed exactly, will lead to CP. I am sure that each attendee's trading plan will be different. There will be a basic commonality but the aim of the whole training is to help each trader find his way along the road to the goal. Putting square pegs into round holes has been proven not to work.

Great volatility today in the ES. I was expecting a sell off due to the long week-end but the downgrading of Spanish debt just added to the fun. Strange that I'll be in Spain for the week-end.

BTW, I have four 24 inch monitors and trade a number of markets. Just because I didn't take a trade you saw doesn't mean it was not valid. I may have been on something else and missed it.