Regular readers know that I take an ultra-conservative approach to my trade setups.
Over-trading is totally unnecessary in my opinion. Get in, get paid and get out of the way.
As I often say, the longer you’re in the market, the greater risk of something happening that you can’t control.
It’s just part of the deal…
And once you’ve committed and have confirmation, you’ve got to follow through.
The Technical Picture
That brings us to the S&P 500 futures (ES) market, as there was a great daily and weekly 1%+ confirmation.
Let’s take a look at the chart…
Price broke out of the orange descending channel by a daily and weekly 1%+ confirmation margin.
I identified a low-risk stop loss area below it, along with three upside potential targets for this trade.
Since this article was written, the first target has already been hit.
If I was in this trade, I would have traded it to the first target and taken my profit, put my cash aside and waited for the next confirmation to enter the market again.
On the other hand, some traders might sell 25% at target #1, 25% at target #2, 25% at target #3 and leave the remaining 25% position on to hopefully keep running.
But like I stated earlier, the longer you’re in the market, the more likely you are to experience something that’s an outside force that causes the market to have a knee-jerk reaction.
Perhaps you have the stomach for staying in the trade longer.
But if you’re like me, you’ll take one low-risk, high-probability trade at a time, ring the register and await the next opportunity.
That, of course, is ultimately up to you, your trading style and your trade plan.
Rules to Live By
“If my life is going to mean anything, I have to live it myself.” Rick Riordan
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.
