Step by Step- Crude Oil-Anatomy of a Holistic Trade in a Live market netting $2470 in 15 minutes and $4500 for the day.

In the past few days with volatility of Crude oil picking up it was  just a matter of time before we see some parabolic  moves  in that markets. Prices trading just below 55  signals the near term bottom with risk of dramatic short covering against the bears. This trade was the 9th sequence for the day . Out of 9 signals I executed  7 trades long and 2 shorts. That told me the market is decisively  bullish. With short term trend and the long term trend Intraday in alignment. I started to look for triggers to get into another profitable trade for the day. The signal arrived at 10:42:45 am central  with price immediately pulling back. To some trades that can be a sign of trouble. However, I had two things working for me.

1-Market in Harmony.
2-Protective Zone around 56.41.
3-My stop was 20 ticks from entry due to market Volatility.Also, 20 ticks is the most productive stop amount per my Tick/Stop analysis study. That study shows me 82% profitable trades with 20 ticks and 57% if I use 10 ticks.

Now its just a function of  harvesting the profits so what are the rules.

1st target typically is 10 ticks. However, due to market volatility I increased  that  amount to 30 ticks to take advantage of the wild swings. I executed the first target at 56.96 for 30 tick profit. Now I am moving my stop to break even +2 and this trade is free of risk.

Now.. Price started to pick up steam in a very unusual way. levels started to disappear at a rapid pace and I knew I got myself a runner I need to maximize. As a rule for my second contract I do not have a target price to exit.  I only use a trailing stop so I can take advantage of unexpected  parabolic moves. That rule kept me in this trade.  I trailed price by 2 candles or 5 ticks below  the transition line and that kept me in the trade all the way till 58.81 for 214 ticks on last contract.

Trading by the rules generated a harmony trade resulting in a $2450 profit  in 15 minutes. and over $4500 trading 2 contracts for the day.
 This trade was posted live in Stocktwits: http://stocktwits.com/HolisticTraderAcademy

Let me know if you have any questions

Wish you Health,Wealth and Happiness .

Regards,
Holistic Trader
George Habash.

How to emotionally manage an expense ( losing) Day- Trading Crude Oil.

Lets agree on one thing if been a professional trader is a an easy profession, You would have everyone doing it and making millions in their pajamas. Some days you are the hammer and other days you are the nail. Today I had an expense day and would like to discuss some of the factors that lead to the performance.

Out of 15 trades made today  2 of them were actually a signal and 13 are non-signal. The net result with commission- $-230. Now the amount of expense money not bad at all but what bothers me is trading outside my system.

Some of the highlights of today

1- Felt tired and distracted and overall run down- coming down with the a stomach bug.
2- Market  did not generate any signals during the morning session. I got restless and took sub par set ups. lead to a quick 2 stop outs.
3- I got stubborn and continued to take sub par set ups and the losses accumulated to $-630.
4- I took a break came back and looked for premium harmony trades and cut my losses to only -$230.



Lessons learned today:

A-The result of one day or one week does not matter. AS LONG AS you are following your system.
B-My edge leads to profits  over time so be patient. If one day the markets is not providing any signals do not compromise  and take Sub standard setups. ONLY TAKE harmony trades.
C-Do not look at your P/L as this will lead you to act emotionally to the market.

What will I do next trading session:

1-Focus on  making the next 10 trades a well managed  Harmony Trades.
2-At the end of the 10 trades  reward myself .Reward will be determined later.
3-Work out and meditate to reduce stress .

5 Tips to becoming a successful Equity,Futures or Forex Trader.

(Simple Guide for the novice and seasoned trader).

1-Why Do you want to be a Trader: - If you are focused on the great deal of money to be made in trading.  In my opinion you got your priorities twisted.  The most successful traders are in love with the trading process and not the outcome. Defining entry and exit and managing risk. They like the challenge of doing something most people find daunting at best. They thrive at been in very stressful situation and coming out a head. For me I make trading feel like I am playing a puzzle or a video game. Money is not money it’s just a soldier in this financial battle. All I want in everyday is to recruit as many soldiers as I possibly can. When you make trading fun and like a game. You free yourself to enjoy it and succeed in it.

2-What kind of Trader are you?-Figure out what type of a trader you want to be. (Position vs. scalper). This part is critical. You have to know yourself well to understand your own temperament for risk. If you are new and do not know. I suggest you Demo trade or better start a Mini-Forex account and practice with real money. In a Mini-Forex account the losses are limited and your emotional reactions to trades are more real than a demo account. In my case I feel scalping is a better option for me and I only swing trade if I am already in the profit to justify the overnight risk. If you are an established trader analyze your results and see if you make more profits from swing vs. scalping then trade more toward what works best.

3-Routine: - Routine creates predictability and consistency. It’s critical for a new or established trader to start his or her day in a focused and consistent manner. For example, on a daily basis I make sure to wake up between 6:30 Am to 7:30 Am to start prepping for the trading day.Also,I built a 12 question List I have to answer to  qualify myself to trade for the day. Working out and meditation prove valuable in putting me in the right state of mind to conquer the trading day. Routines like this prove very valuable in building structure in my trading and can be valuable in yours as well.

4- OH these Dammed Indicators:-Dump All the Indicators and stick to price and volume trading and reading. Think about it for a second. Do you think Goldman Sachs or JPMorgan are trading based on RSI or MACD crossover or any New or Hip Indicator? Trust me they do not. Actually they are taking the opposite side of these trades. Nothing beats understanding the forces of Supply and demand.  Build a Simple Rule Based system that will prompt you to get in and out based on price and people behavior. Your Risk should be measured not based on how many ticks you can afford to lose but on price break points. The technicality of it all cannot be summed up in this paragraph. However, The Main point to take is to have a very specific set of rules to govern every aspect of your trading.

5-Manage your Emotions:-This is the killer of many traders including myself. In my Trading career I have blown up many accounts trading equity, Options and futures. I sat down and analyzed the common denominator between all of these failed attempts at trading riches. The single reason was my lack of ability to manage my emotions in a constructive manner. So if you are reading this the odds are you have experienced similar results and looking for a way out of the cycle. I   figured thru trial and error that my effective trading times are the first half of the day between 8:00 AM to 11:00 Am. I built a rule based system to reduce the emotional impact of trades during my peak times. Finally, I do meditate before the beginning of the day and use breathing and mental focus exercises to manage my mental states while in the trades.

Finally, Trading is a journey of self-discovery. Focus on the positive of every experience and every trade you make. Mentally decide no matter what you are a winner even thou your trading account does not reflect it yet. Seek knowledge from people who are experts in the trading discipline you seek. And the most important thing is never ever ever give up. Stay in the game long enough and you will figure out a way to win.