There is a few ideas I have formed from watching trading screens and executing thousands of trades over the last 10 years.

To me it seems that markets trend when the majority least expect it.

This creates the fuel for a directional move as traders caught in losing positions cover and momentum traders jump on the trend.

For a group of traders to be caught out a sudden directional move is required which requires a re-adjustment to the new reality.

The past 2 posts illustrate such a move with the "failed probe".

There are other patterns like the tap pattern, pump fake and inside bar failures that create this cause and effect.

It may be worthwhile with trading to think in terms of boxing.

The advantage is gained in trading by hitting with a counter punch when your opponent is off balance.

Alexander at www.tradewithpride.com has been a great help in creating a trading structure around various setups and some proprietary parameters that I have adapted to fit my style.

A Real Trader VS the pretenders

It frustrates me that many traders and investors seek out education from gurus and investment advisers that don't make profits themselves.

If you are forking out money to improve your trading I think it is important to do your research.

Although I don't regularly post my results. (I don't have the time to teach and I think Alexander does a good job) you can see my past results on my old blog at http://davinstradingreport.blogspot.com/ on the right hand side.

Since this time my results are still what most regard as excellent returns. (I think it is important to show I am a profitable trader because many in this game don't walk the talk)

I will get my last few months results once they're audited.

Finished the week off just trading the first 2 hours and then had a long lunch.

Up US $1000 today with 2 sequence trades.

Bought a confirmation break on the uptrend with a nice structure.

Took some heat as I waited for the potential breakout.

I've made a video of this trade with Brian from Pride Trading helping with technology.

The next trade I looked to fade at the resistance highs with a stop out on the first attempt then a nice move on a fast drop.

Dax 10-7.PNG (86.50 kb)

http://www.screencast.com/t/Bg7Yafa9Y

If you click on the link above you can watch as I trade the first trade.

It is slow but it shows the timing of the entry, the heat taken on the trade and me just missing adding a 3rd contract as price expanded up.

I think it is good to experience the reality of trading. Ignore the sound as this was Alexander doing his morning projections.

Today I was not too happy with missing some great trades and settling for small profits.

My lack of speed in taking positions cost me early, so from here on I will be better prepared.

The ES trade was a secondary entry with the optimal entry at 919.25 short.

With the late sequence I scaled out quickly and with hindsight could have been a bit more patient.

A late day trade on 2 long at 913.75 and out at 914.75 was also an early exit as I find the last half hour can be choppy.

Profit was $575 US.

The Dax I was a little unlucky with today.

Scaled into an exhaustion area at 4800 support on the Dax and 911.5 support on the ES.

My stop at 4791 was hit on a spike down before reversing, which required a second entry and close at first resistance around 4804.

I scalped for a few point and finished up $210 US.

Missing the big move down and a perfect entry short at 4852 cost me dearly in profits as I was concentrating on the ES.