Wednesday, October 26, 2016

Only Take the Best E-mini Trades

You don't have to take every trade you see. The Trade Scalper produces, on average, eight to twelve E-mini S&P trades from 9:30 a.m. to noon. If you took every trade, you would be subject to more risk. Instead, John Paul from believes traders should only take the best trades. How is this accomplished? One way is to use the ATR (Average True Range) to see how volatile the market is. When the ATR is between one and five points, the market is considered good for trading. For scalping, an ATR of at least two or three ticks is preferred. Because the ATR is less than that, John Paul avoids this trade altogether.

With multiple good short trades prior to this one, you can see why taking this trade is tempting. If all the other signals were right, what are the chance of this one being wrong? That can be dangerous thinking. Instead, it is better to stay objective. Another psychological problem is beating yourself up after not taking a trade that would have been a winner. You may think that the missed trade may have made up for a losing streak or paid a bill. That's also an unhealthy perspective. Remember, if you follow a strategy objectively, the strategy should provide you with more winners than losers in the long run. Don't sweat the small stuff. Let missed trades roll off your back. Continue to monitor your progress and take notes. The live training that's included with the Trade Scalper will teach you other ways to manage risk.

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