Going to The Beach Trade

One of the traders signed up for the trading has told me that he likes the idea of just one trade a day and then "going to the beach". He asked how he could do what the guy I had written about did - the guy with the Porsche.

There are a few trade setups that are like that. Not all of them come up every day but between them I think that the "beach" trade is a viable idea as long as you have determined your needs and risks and have the capital to support that profile.

Today's trade when ES RTH opened was one of those.  I sold 1076.25 against the bottom of the triple prints of yesterday's Profile with the vision of it running down "the zipper" to at least 1071.25 or lower.

It was an easy trade to put on as order flow clearly supported the trade. I scaled only once on the way down to protect myself in case I was completely off base and then covered during the bar at about 14:54 London time as the order flow had stalled and looked to reverse.

As value was accepted above 1077.00, I looked for how to go long. The guys in their Porsches had already gone to the beach with the 5 points per contract profit, not too shabby even if you were trading on just a 10 lot, or even a 3 lot.

The long came at 1076.00 and my target was the bottom of VA of yesterday. There were 2 numbers: the TPO and Volume VA. As it happened the Volume VAL of 1080.00 was hit and I exited as order flow dried up.

When trying for CP, there is something for deciding on a smallish profit target and stopping live trading when you get there, moving back to SIM for the rest of your session.

We are going to cover all of these "the business of trading" subjects in the training. It's an important part of the whole path to CP.