This ES futures daytrade turned into our day trade of the week. The core of our trading is 2:1 to 3.5:1 reward to risk, and that consistency is what really drives our profitability. Sure it is great to have a homerun trade, but if you are consistently losing money it will not help your account. Our consistent profitability is the key to a healthy trading account. This trade in particular gave us a 15:1 reward to risk, which amplifies our account.
Let’s break down this ES futures daytrade. We got short at 2084 with a stop 2 points above at 2086. By keeping risk small our profit does not have to be astronomical for us to consistently make money. Our profit target was 15 points away, so it was a trade that was too good to pass up.
2 contract short entry @ 2084
2 contract initial stop @ 2086
2 contract exit @ 2069
This equates to a profit of 30 points or $1,500
One factor that makes day trading so difficult is that money is not managed and emotions are allowed to run wild. Daytrading can be very lucrative, but so many people get confused by the speed of that data and the ambiguity of the trades. Our brains really dislike ambiguity and that affects our trades along with any other factors that may be hurting us.
When I first got into trading I did all the bad things that negatively impacted my trading and it was hurtful to my P&L but even more to my self image. Trading is an endeavor that takes hard work and dedication to achieve, much like reaching the NFL or NBA. Trading is a great business to be in, and trades like this are like water to a dolphin.
Daytrading can provide very nice reward to risk as well as more precise money management if used correctly.
We do trades like to this on all timeframes in the emini trading group.
Comment below and let us know your daytrade of the week.
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