Steady day trading is the way to go…..

I could find nothing to trade today. Wheat immediately moved higher and any breakouts to the long side would have had targets above the high limit, so naturally they were declined. Maybe price will turn down and take a run back towards the short side, but I’m not inclined to wait around for that. A "no-trade day".

Reviewing the shortened holiday week, there has been 1 winner, 1 loser, and 2 no-trades. The winner made 21 points, the loser lost 7.5 points, so net gain was 13.5 points less commissions. The total time money was at risk in the market was under 10 minutes. Not an awe inspiring result, but I’ll take it….

One of the reasons I started this diary was to illustrate the "steady" nature of earnings when you day trade in a disciplined manner. As the weeks click by, I hope you are seeing this for yourself. Of course, losing weeks will inevitably occur, but they are quite rare. Equally, there are those special weeks when you walk away with three or four wins.

The importance of keeping the average loss less than the average win is reinforced by the fact that I’ve had as many losers as winners in the last two weeks, but still managed to keep earnings positive. A good average win to average loss ratio gives you a margin for error if your percentage of winning trades happens to drop below targeted levels.

 

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