Welcome! It’s probably best to start with a little context. I’ve been learning to day trade for around 6 months now. I’ve primarily focused on the futures market this time around. Within the futures market, though, I’ve bounced from natural gas to gold to ES to crude oil, and have since settled heavily into ES. More specifically into MES, which is the micro version and enables me to keep my risk very small.
Today, I’m reaching back into the GC pot, specifically MGC (Micro Gold). I’ve been reading The Daily Trading Coach every night and pushed from that I’ve been studying my stats in TraderVue heavily. What it seems to tell me is that I’m generally more successful at short positions. With that in mind, I’ve added MGC back to my list of tradeable instruments to enable me to stay in short positions when MES is up-trending.
Here is what that report looks like:
As you can see, I’ve actually made money from shorts, and well… just ignore the long side. I’m still not 100% sure that this isn’t just the market environment for these, though. For example, over the last two weeks, I’ve almost only taken short positions and have lost almost every day, BUT those were all in ES and I was trading only up days during that time.
So, today’s strategy is to identify the direction of the market and pick the instrument that is likely to go down. During the time I’m trading (between 5:30 am and 7 am EST) I’m expecting the ES to trend up, which puts me in shorts on GC.
I’ve taken one trade on MGC around 5:45 am, which I won and had 8 ticks of risk on the trade. My entry is around 1577 for a short position. This trade came directly after a large downward move and I entered on the bounce back up. Here is the 5-minute chart showing the trade:
Looking back on this one, I think I should’ve stayed in the trade. I did have a good entry and stuck with my conviction on the entry levels. Gross profit on this was exactly 1R (1 unit of risk or $8 in this trade). The net was (0.84R or $6.68). This is probably a good time to mention that I’m currently trading a $150 account, so this profit represents a 4.5% gain today.
Just after 6 am I missed a good entry, my level (as mentioned above) is at 1577, but I convinced myself that the ES could be moving towards more downside and the thought of losing what I’ve made scared me out of it. It would’ve been a 10 tick profit potential. This notes another big change I’m making today, which is not looking at my P&L at all, though I still roughly know how many ticks I’ve won vs. lost. I want to get this out of my mind when I’m making trades, each one is new and isolated. The fact that I’ve won or lost has absolutely no bearing on the success of another trade.
Well, it’s near 7 am now and I have a lot to do today, so I won’t be trading past it today, especially since I’ve had my first green day in a while. I don’t wanna say it was entirely because of you, but…
I hope someone found this useful, but if not, this was a great exercise for me and will continue doing this every day I trade for now.