Conservative Numbers

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Even though you have a potential of three to nine trades a day, that

does not mean you have to take every trade. "Every day is not a

trading day" from a reward-to-risk standpoint. You want to take the

trade that gives you the best signals and the highest profit potential.

Some days are obviously better than others. There will be days

when you are not at your best physically or emotionally. Despite

your desire to trade, do your trading account a favor and don't

trade on days when you are not 100 percent ready. The figures in

Table 3.1 make the assumption that you have only three highprobability

trades per time cycle, and they reflect only the buy entry.

Looking at the numbers, you can determine that a day trader should

have 15 high-probability, high-profitability buying trades a week, a

Table 3.1 Conservative trades

Per Day Per Week Per Month Per Year

Day trader

Microtrend trader

Position trader

153

60

123

720

144

36

microtrend trader 3 trades per week, and a position trader 3 trades a

month. Compare this to your own trading record and results. If you

are exceeding the monthly and annual conservative numbers, you

may be pushing your trading, and your results will more than likely

reflect that fact with a high ratio of losses.

Multiply these numbers to reflect both sides of the trade, the

buy and the sell. For example, if you made three trades in a day and

sold at the end of the day, you would have made six trades (3 x 2 =

6). Most successful short-term traders trade within these conservative

numerical ranges. If you are trading less than the conservative

numbers, you probably have poor performance. You are being too

cautious and may be afraid of losing. That's okay if you are a beginner,

but after you have a year or two of real-time experience, you

should achieve the conservative numbers.

Even though you have a potential of three to nine trades a day, that

does not mean you have to take every trade. "Every day is not a

trading day" from a reward-to-risk standpoint. You want to take the

trade that gives you the best signals and the highest profit potential.

Some days are obviously better than others. There will be days

when you are not at your best physically or emotionally. Despite

your desire to trade, do your trading account a favor and don't

trade on days when you are not 100 percent ready. The figures in

Table 3.1 make the assumption that you have only three highprobability

trades per time cycle, and they reflect only the buy entry.

Looking at the numbers, you can determine that a day trader should

have 15 high-probability, high-profitability buying trades a week, a

Table 3.1 Conservative trades

Per Day Per Week Per Month Per Year

Day trader

Microtrend trader

Position trader

153

60

123

720

144

36

microtrend trader 3 trades per week, and a position trader 3 trades a

month. Compare this to your own trading record and results. If you

are exceeding the monthly and annual conservative numbers, you

may be pushing your trading, and your results will more than likely

reflect that fact with a high ratio of losses.

Multiply these numbers to reflect both sides of the trade, the

buy and the sell. For example, if you made three trades in a day and

sold at the end of the day, you would have made six trades (3 x 2 =

6). Most successful short-term traders trade within these conservative

numerical ranges. If you are trading less than the conservative

numbers, you probably have poor performance. You are being too

cautious and may be afraid of losing. That's okay if you are a beginner,

but after you have a year or two of real-time experience, you

should achieve the conservative numbers.