Double Your Pleasure – Don't Double Your Trades!

Hello Traders,

One of the worst enemies of traders is over trading in any given trading day.

Stop Over Trading!

Stop Over Trading!!

It is said, Gann could just about guess the top and bottom in intraday trading.  Wyckoff even wrote about it, but does this help us as traders?

How many trades are too many on any given trading day?

April 12th, 2012:  200 Trades Chart #1

For me, any day I am over 4 trades in any given trading day, then I have traded too many times!  I have 8 trades for the day.  Trading almost up to the close of trading on this day and I netted 9 ticks.

April 12th, 2012:  200 Trades Chart #2

After paying the cost of trading – commission cost – I netted $42 on my trading day.  Obviously, this is better than a losing trading day and over trading, but still the issue of trading too much on any given day will haunt us as traders!

April 12th, 2012:  200 Trades Chart #3

On the 3 charts listed above, you notice an easy trade that went 4P on the trading day.  Today’s 1P move was 30 ticks, so it went 120 and almost 150 ticks before the HVS SKY volume bar.  120 ticks is equal to $1,200.00.

In my ultimate wisdom, I tried to short the market and got caught.  As I look over the charts, I jumped a market short, and I paid the price for my stupidity!  When will I learn to TRUST my trading signals?

Watch Over Trading!

Watch Over Trading!

I did see the morning trade, and I even debated about going long.  What I saw was 3 red volume bars and 1 blue volume bar in the premarket trading.

This believe it or not, had me thinking a long.  So why would I short into strength without an HVS SKY bar to prove the market was done going up?

So I spent the rest of my trading day looking for a valid trading setup in the afternoon.  It did come thankfully, and I was able to get control of my trading and finish positive on the day!

But at what cost?

April 12th, 2012:  200 Trades Chart #4

Overall on the week, I netted $412.00 during the trading week.  I am still $86 in the red from the start of April.  I took off trading on Friday, because the reports stacked up all the way up to 9:55AM Eastern Time.  I have found this more times than not, not such a great day to trade, unless something from the outside influences the trading day.

I didn’t see anything early to warrant any action – so I stood aside on Friday’s trading.  I have not been able to pull any money out of my trading account during the month at this point in time.  I am debating on the 1st STAB at $3,750.00 to pull money again from the account.  Since, I have had such a tough overall April with some really good trading signals, I have missed for one reason or the other.

In fact, I have convinced myself this is the best course of action.  Build some more confidence, pull some money out, and continue trading.  So this is my trading plan coming into next week.  To be able to get to the 1st STAB amount once again, pull some money out, and then take my shot at STAB #2.

Stay in control – always!

April 12th, 2012:  Trading Statement

See you next week … I will post a trading masters wisdom post sometime either Saturday or Sunday.

 

Good Continued Trading,

David ‘Tiger’ Knight

P.S.  HVS Trading Strategy/Method YouTube Video Series

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.