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Opinions on My Trade Plan

  • #1
  • First Post: Feb 7, 2014 10:46am Feb 7, 2014 10:46am
Hello,

I am new here and I only trade the /ES. Although this is FX forum, the material here is good because its all trading. I'm glad i found this website.

I have been trading ES for about 2.5 years, one year of that is paper. Results, I am down -$2000 since I started 2.5 years ago. I dove in head first with real money, and loss of course.

I think something is wrong with my risk vs reward, cause I win sometimes, but trading one contract is hard. Its like I am up one week, then down the next, and I can never get ahead.

I just want to make sure I am on right track here with my plan.

Here is my trade plan in short:

Contracts: 1 contract for now (I plan to increase to 2 contracts once I make $2000-$3000)

Stop loss per trade: $100 to $125 (my plan is -2pts stop loss)
Profit taking: $400 (or 4pts)
Trade method: Only support and resistance areas and with the trend.
Time of trade: Only mornings, I look for a good trade and want trade past noon. I try to catch the first trend of the day.
Number of trades per day: Only 2 trades per day
max loss per day: two stops outs and I am done for the day

I only want to trade support and resistance, no indicators, just price.

Concerns:

1. Trading one contract is very hard. I would love to trade contracts and take one off at +3 pts profit and let the other contract ride for as much profits as possible.

Questions:
1. Should I increase to two contracts now or stick to plan? Trading one contract is just hard unless I simply change my profit rule to 10pts per trade and move stop to +4pts once the next resistance is tested or demand line breaks.

Thanks for any help provided
  • #2
  • Edited 6:42pm Feb 7, 2014 6:00pm | Edited 6:42pm
Quoting goodoboy
Stop loss per trade: $100 to $125 (my plan is -2pts stop loss) Profit taking: $400 (or 4pts)
Do you have a solid entry setup or it's just your plan ?

2 pips SL will need very solid entry points ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Feb 7, 2014 6:37pm Feb 7, 2014 6:37pm
Fixed stop loss, fixed TP and 1 in 1 out trading is a difficult way to make money.

Try to stop thinking in individual trades, see it as an account you are managing, take what the market gives don't try and impose your will on something that can not be controlled or accurately quantified.

If you have a valid entry in a good location and you can enter with small risk take the trade. Stay in that trade until you have a valid signal saying you should be trading against it... at least!. If you get another valid signal in the same direction as the first, add to it and remove risk from the first. When the market is going your way you will make much more than 4/1, in conditions not suited to your entry technique you will make less...... Do this for some time, collect some data, work out if you can increase your risk without blowing your account.

I don't think many traders work with a fixed stop fixed exit mentality, they may have a figure of 4/1 in their head, but you can bet your ass if the market is ripping they will stay in and ride it for as long as possible... thats the mindset of a trader...

Remember the market only goes up and down, if you can find a simple way of entering at turning points then there will be opportunities to ride many many trades for much greater than 4/1...

good luck
tradewith60
  • #4
  • Feb 7, 2014 8:20pm Feb 7, 2014 8:20pm
Quoting FerruFx
{quote} Do you have a solid entry setup or it's just your plan ? 2 pips SL will need very solid entry points ...
Here is my exact entry plan

1. What way is price moving up or down? Lets say its up for this example
1.a. I like to get in on the first (or second retrace) if price is trending up (or down).
2. I wait for price to get above some resistance level or return to some support.
3. Lets say for example, I wake up and price is trending upwards. My mindset is, I need to get long on support. If I can't get support, I need to take risk once price gets above some known resistance. If that happens, I enter long using the 3 min chart if candle close above resistance and second candle close above resistance.

If you like I have about 20 clear picture example I can show you of entry.

Thanks for help
  • #5
  • Feb 7, 2014 8:27pm Feb 7, 2014 8:27pm
Quoting goodoboy
{quote} Here is my exact entry plan 1. What way is price moving up or down? Lets say its up for this example 1.a. I like to get in on the first (or second retrace) if price is trending up (or down). 2. I wait for price to get above some resistance level or return to some support. 3. Lets say for example, I wake up and price is trending upwards. My mindset is, I need to get long on support. If I can't get support, I need to take risk once price gets above some known resistance. If that happens, I enter long using the 3 min chart if candle close above...
I was not requesting your trading method.

Was just pointing out that with a 2 pips SL, you must have a SOLID entry point.
MT4/MT5 EAs/Indicators/Alerts coder
  • #6
  • Feb 7, 2014 8:34pm Feb 7, 2014 8:34pm
Quoting 60minuteman
Fixed stop loss, fixed TP and 1 in 1 out trading is a difficult way to make money. Try to stop thinking in individual trades, see it as an account you are managing, take what the market gives don't try and impose your will on something that can not be controlled or accurately quantified. If you have a valid entry in a good location and you can enter with small risk take the trade. Stay in that trade until you have a valid signal saying you should be trading against it... at least!. If you get another valid signal in the same direction as the first,...
Thank you 60minuteman for responding.

Quoting 60minuteman
Fixed stop loss, fixed TP and 1 in 1 out trading is a difficult way to make money.
I strongly agree with you. For nearly 1 year, I have done nothing but break even. Cause all trades are not discipline trade ( move the stop back a bit, the one more catch the bottom trade, etc)

Quoting 60minuteman
Stay in that trade until you have a valid signal saying you should be trading against it... at least!.
I agree fully. Just blindly take exiting at 4 points sounds good, but it want net me the monthly profits. I think the point is ride the winner all the way. yesterday, i was long and exited for 8 points. The market continue going up another 10 pts for the day. Its trades like this that is good, but frustration to see so much potential profit go away.

Quoting 60minuteman
I don't think many traders work with a fixed stop fixed exit mentality, they may have a figure of 4/1 in their head, but you can bet your ass if the market is ripping they will stay in and ride it for as long as possible... thats the mindset of a trader
I agree with this as well. I have learned that its possible to have more losers then winners, and vitally important to let the winners run.

Thank you. That's why I joined to talk to experienced traders to get my mindset to think bigger, and not so conservative. I know I discipline to stick to my plan, i think my problem is with exiting to early and not getting in early on the trend. I be hesitating!

Thank you
  • #7
  • Feb 7, 2014 8:37pm Feb 7, 2014 8:37pm
Quoting FerruFx
{quote} I was not requesting your trading method. Was just pointing out that with a 2 pips SL, you must have a SOLID entry point.

I trade the /ES so 2 points is good enough. Far as solid entry plan, it varies, sometimes I get a good entry, and sometimes I don't. Right now my focus is making sure I am headed in the right direction with price and taking action.
  • #8
  • Last Post: Feb 7, 2014 10:42pm Feb 7, 2014 10:42pm
Quoting goodoboy
{quote} I trade the /ES so 2 points is good enough. Far as solid entry plan, it varies, sometimes I get a good entry, and sometimes I don't. Right now my focus is making sure I am headed in the right direction with price and taking action.
If the win rate + RRR give you a global positive result, so all good ...
MT4/MT5 EAs/Indicators/Alerts coder
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