Bracket Orders

Over the course of my trading career (six years) I have learned that the traders who make consistent profits are not hitting the huge home run trades that everyone thinks they are. In reality, they are trading more contracts profiting on smaller moves. The trick is finding the lower than normal risk and capitalizing on it. Getting the emotion out of the trade so you can actually stay with the trade and move your risk as the trade develops. Too often swinging for the fences with every trade leaves yourself open for huge losses, and you are taking on too much risk for your account size.

When I am scalping I have a defined risk on each trade (1.75 ES Points). I know the risk going into each trade. So knowing that, it is my job as a trader to wait for the right opportunity and all the confirmations to align. If one of the three confirmations is not there, I skip the trade and wait for a better entry.

The method I use is simple and forces me to only scalp in the bigger trend direction. Yes, I can see the counter-trend trades as they develop, but I stick to the rules and I skip those trades. Sean at eMiniSchool has done a great job in making a system that forces me to stick to the rules of entry. I have been trading for many years, but until I knew how to skip the counter trend trades with a clear plan, I was really just gambling more than trading.

Everyone has their own way of trading and this is just my experience, but what I have learned is every trader faces the same struggles no matter how long they have been trading. The trick is finding a system you feel comfortable trading with and then sticking to the rules of that system.

Having my bracket orders set and following the rules has helped my trading more than I ever thought it could.

Steve

eMiniSchool