Be Water My Friend

Hello Traders,

bruce lee be like waterToday, I want to take the time to talk about trading. In particular, I want to talk about my opening two trades this morning and how I should have been better prepared.

My opening trade in crude oil did not happen, because I was not prepared to trade. I got up a hour later than I normally do and this set me behind and I wasn’t fully prepared mentally and mechanically to make it.

So I missed it. It went on to a 1P target, which today was 20 ticks on one contract and the other was taken off when it would have moved to breakeven.

So I was roughly $200 out of the money to open up my trading day and this influenced my next trade which I did take.

BTW, my first trade should have placed me long (buy) at 9419 at 8:04AM CST. My second trade was a short (sell) at 9432 at 9AM (CST). This trade I made and here is the chart directly below with some of my notes.

Looking at the chart from Left to Right you can see the opening long position failing to reach that red line, which in this case is a 2P target.

Today this was 40 ticks from the entry point. What is not shown on this chart is a high volume spike bar that is blue in color a little to the left off screen.

You can see that in the chart directly below:

So what we had was a closure of the opening long trade and the short trade showing up on the first chart above as the market could not continue to make higher highs on its swings.

The market went 10 ticks in my favor eventually and I moved to breakeven on both of my contracts (this was a mistake) in hindsight.

I was driven out of the market with a very minimal gain and this is where I got caught trying to “catch” a breakout.

Here is what I should have done … I should have only moved at most 1/2 of my position to breakeven to lower the chances of both contracts being stopped out, but also give me some room to negotiate with if the other contract stayed in the trade.

In this case, it did …

Here is a chart of what I could have made … (I know if candy and nuts …)


This point with the blue arrow could have been an exit point on a trailing contract today … it was 9314 roughly give a tick or two.

From entry point today to exit would have been over a 100 tick gain on one contract simply holding and allowing the market to take me out of my runner.

In this case, the blue line is a simple 200 moving average! The crossover could have brought you out of a trade that had moved considerably down on the day.

ziglar plan to winI did end up on the positive today with a gain, but it took a lot more of my concentration and losing more to make that happen. This is not the way to wealth as a trader …

I will be entering into the combine at TST (Top Step Trader).

As Zig Ziglar said, “Plan to Win, Prepare to Win, Expect to Win.” All of this has to be ready to go before you can go!!


God Bless and Good Trading,


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About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.