Max Daily Loss

Crude Oil Trading June 9th 2015

Tuesday: June 9th, 2015

Crude Oil Trading: Lost 28 ticks on 4 trades today. I must pay better attention to what the market is showing and telling me against simply taking a trading signal on my charts. The Max Daily Loss on the $10K TST Trading Combine is way too easy to reach with really only able to take on any given day a 27 to 28 ticks loss before you can’t trade again.

On Today’s Trading ReCap Video I talk about the 8P Gunning for 10P area of a trading chart:

CLPORT Method: Took a 12 Tick Trading Loss today.

This trade really says all I need to say … I attempted to trade against the trend of the morning session. There was a breakthrough of the S2 Support Level, but I didn’t allow my trade entry to work below this area.

In other words, this was a much stronger long trading day than a short trading day … I should have forced the market to prove it wanted to go down by placing my short entry below the S2 Level today and taking that signal …

This would have perhaps got me to trade the correct way on the long side today; instead of, trying to go against the $60.00 a barrel level I was fighting against this morning in my trading.

It was simply too strong an area to ignore in my trading today. What I know is I can make up any trading loss on any one good trade so as I trade against the Max Daily Loss on any given trading day … this will continue to by my nemesis where I have been successful in my trading past by rope a dope with the cl market.

Overall, what this is forcing me to do is to have a “better” trading plan against the TST Max Daily Loss and not simply take a trading signal because it says so … what I am noticing is I need to pay more attention to significant support and resistance areas on my charts and be more selective on my trading entries to keep from going against max daily loss on any trading day.

In addition, I need to get away from the hail mary play on my trading … asking the market after entry not to retrace one tick is just not going to happen on most trades so save the $10 for another trading day.

In addition, if possible to set my stop loss against the “swing high” or “high” of trading day and this will allow against two losing trades of equal amount, then I believe this is a good idea.

Like today, my opening two trades brought me down 27 ticks, whereas, if I forced the market to make a new high today then I would have only been down 15 on one.

Another thing I should pay more attention to when the market is trading up … as I am more apt to be right with the market is trading down is to pay attention to any weakness signals against the overall daily trend.

Although, this signal came into the market … the market went on to create a new daily high at 6023 a little later on. This perhaps, will keep me away from bucking the trend against a stronger trend like today to the long side.

There were 1000 Trend Bars (blue) in color all over the charts today and I ignored them and went short anyway … in addition … I allowed myself to trade above the S2 line which had not been decisively penetrated on the trading session.

What I know about myself … is I am very comfortable shorting the Crude Oil Market … but I need to be more comfortable taking a long in the Crude Oil Market when it is there like it was showing on the charts today.

Kind Regards, Good Trading and God Bless,

David M. Knight

P.S. Key Take Away from Crude Oil Trading Today is this … The Max Daily Loss at TST of $300 on the $10K Trading Combine is forcing me to become a better more disciplined trader. This is not a bad thing!

P.S.S. A Trading Gem For You Today as I am looking over the CL Market we went above my 8P Profit Target on the day (see 8P Gunning for 10P blog post) … there is an 80% chance in trading today that we will see 6063 on the trading charts today to a high of 6110 (10P to 12P). 🙂 At time of post, CL Market is trading at 5983 at 12:24PM CST.

Trading Chart Stopping Volume Stops 10P Move Today:


Crazy thing about today’s Crude Oil Trading … made 10P before the day was out … just the stopping volume chart above stopped the CL Market at that point in time …

10P on the Trading Day was located at 6063 from the Open at 5831 of the CL Market. What this means overall … is volatility is increasing and with that the velocity and volume are coming along for the ride as well.

10P Crude Oil Hit (8P to 10P Gunned again!)



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.