Hello traders,
Today i wanted to write a quick article on trading with regards to taking trades out of boredom or frustration when the ES is choppy and not moving fast enough to keep you intrested. One of the worst things you can do as a trader is to take trades out of boredom, it will program very bad habits and you will most likly lose on the trade as even if you enter in the right direction it is very hard to hold the trade to the profit target if the markets are trading slow. So what this will do is alter your risk / reward on those trades.
When the ES is trading slow try looking at the Russell symbol (TF) as most of the time the TF will trade faster than the ES. Each full point in the TF is worth $100.00 unlike the ES where each full point is worth $50.00.
Also the TF seems to break harder one way or the other if you are a breakout trader. We are not breakout traders we always want to enter on pullbacks, but if you are a breakout trader the TF is a great contract to trade. We beleive the reason whey the TF breaks out harder than the ES is because there is not as much hedging going on in the TF as there is in the ES. This is just something we have noticed in our years of trading.
The TF also trades more stocks if you like trading stocks. The TF trades like a AAPL or GS something that really moves throughout the day and the faster it moves the quicker you can bank your profits. Some people will say the TF is too thin, but this can work to your advantage if you are on the right side of the trade, plus unless you are trading more than 100 lots we would not be concered about the TF being thin.
Keep an eye on the TF if you feel like you are getting bored or frustrated during the day trading the ES if the ES just seems to be chopping back and forth for the day.
The chart above is a 3 Minute TF chart. We had a very nice sell signal (the 2nd set of reds) for a nice 6.00 point winner on the short side. Also notice how on both legs down the blue bars came in at the low of each of the moves to give us a very high odds of a turning point which nailed the low of both of the moves down. Looking at the chart would you trade long against our sell signal? It is very key in your trading to have a real time visual on the market to keep you trading in the right direction!
Happy Trading!
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