New Targets

Crude Oil Trading June 25th 2015

Just as I suspected in Crude Oil Trading … Volume has dried up now in the Summer months … historically this is the time I take off from trading. Basically Mid to Late June until Mid August. I have decided to keep trading selective days during this time period because I am in a TST Trading Combine.

What I now know is this … I will have to adjust my stop loss to reflect the lack of momentum in any movement and be more selective of any entries.

This trading chart sums up my last two trading days … getting whipsawed right out of the market on both days giving up all but $6 of my trading gains.

If I would have stayed with a full stop loss and a more defined trading pattern, then I would still be in this trading day. My first entry with a full stop loss would have brought me in long at 5995.

This trade hit its stop loss at 5976 today or 19 ticks overall.

The second trade of the day was to take the opposite of the long … which was to go short at 5964. This would have placed a stop loss at 5983, which at the time of this blog post has not been hit.

With the higher R, this will limit my entries against the $500 Max Daily Loss. But until volatility and velocity come back into the market … the only thing that will happen from this point in time until it does is whipsaw action in your trading.

So this is my story and I am sticking to it …

Now, with the higher R I will have to accept a higher overall win goal on any trading day and I will have to be very reluctant to move to breakeven at any point in the early part of the trade.

This might perhaps be a valid way to approach your trading … and the end result will it will decrease your number of trades … and I know from past experience will stop the overtrading that I have seem to have placed myself into over the last few days with no volatility and velocity to help out.

What this means in today’s trading I am looking for these targets … the long is out … but the short is in where I am looking for 5874 on the downside in my trading. I must be willing to accept profit targets much higher to compensate for the increased RISK in my trading now.

 

Kind Regards, Good Trading and God Bless,

David M. Knight
TradeCraze

 

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.