If there’s one thing that I miss about day trading in India it was eating food.
When it was time to eat we were always concerned about getting sick afterwards (read our day trading & India travel blog)
There is no nice way to say this but it is not an exaggeration. I tossed out my food (from both ends) more in the two months in India than I have in the last 15 years. I know what you are thinking and I’m not that old.
It has been tough traveling around the world as the dollar has continued to decline in value. India was the exact opposite as the country continues to struggle economically.
With the recent blizzard passing through the Northeast it was important to plan ahead. There was a funny discussion between a friend and myself about preparing for the storm. In Florida we have hurricane parties whereas in the Northeast they stay home and be boring.
I stated it was probably important to stock up on food and snacks since restaurants would be closed and delivery would be nonexistent. The New York native told me “no this is New York they still deliver in the blizzard”.
God bless America.
The market today moved very well it comparison to the movement that we had last week. Even though the volume is lower the actual movement has been better. The day started off with two great trends and a massive run to the downside that could have netted close to four points.
We covered two new trade setups that we are developing for the pros room and advanced traders. It dawned on me that most traders that don’t understand how to read the market would consider the pro trades ludicrous.
It was a big mistake to take a trade based on instinct rather than rules.
Even though the trade netted a positive 2 ticks it kept me out of two pro trades that could have netted over 2.5 points. It dawned on me that many of these Pro trades do not fit the classic risk versus reward ratio that many traders look for.
This is another aspect of trading that most outsiders don’t understand. All the advanced and pro traders at the Day Trading Academy choose to combine a lower risk versus reward ratio with a higher winning percentage.
We just posted the beginner results for December which strictly abide by that to 2vs1 risk versus reward ratio. In other words, a trader risks $50 to make $100.
When traders begin to develop an advanced understanding of the market and know how to read momentum things change drastically. There are trades that went over 90% of the time but may only have a 1vs1 risk versus reward ratio.
So the question is should traders only take traders with a winning average of roughly 60& or 70% at a 2vs1 risk versus reward ratio. Or should traders focus on more advanced trades that went over 90% of the time but only have a 1vs1 risk versus reward ratio?
In our studies we have found that many of those Pro setups which normally would look very aggressive are extremely profitable. Keep that in mind when it comes and something to consider implementing right away in your trading.
Stay profitable my friends.
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