Trade PB's that pull back on a trend and enjoy a winning 90%. CT trading is just stupid and a good way to blow out a account. Yes when I started doing PB's I CT traded them because that's when they show up 95% of the time. If I did not know what I was doing I would of been screwed many of the times.
Mike has a good point, think of playing the market like playing cards, only trade the rich deck's and dont screw with the 4-9 off-sute's. If you are going to CT something you better have your charts correct and know that it will not be a long term move. I went long off the 5min this am but if you read my chart I posted I knew I was against everything all trends on all times, BUT I had a setup with RSI divergence that I have traded over 2000 times and made a good living doing it for years so I did not even think about it when I jumped into it.
One thing you guys need to look at is trend, yes we do not trend all the time but we get some nice long month long+ trend moves, and this helps show what way we are going, sure you may have a day that is down when the long trend is up BUT you have to know that 80% of the time we are going to be going up.
Here is how I add it all up in my head, my trade soup.
Time = 20%
Long Term trend = 20%
PA = 50%
RSI = 10% *** Unless I am doing a CT trade then RSI is about 50%, price is 20% and TIME is 30%.
Take a piece of paper TAPE it on your screen and write down your rules, print out days you lost and go over them again and again, NEVER trade on emotion, if you get excited trading your doing it wrong.
