I took a trade off the 15 minute chart of United Healthcare (UNH) today. The ticker came up on a 15 minute scan. The initial risk was 25 cents. I closed the trade out about 10 minutes before the market closed for a 53 cent profit. Had I lost money on the trade, it still would have been a great trade. Why? Because the setup was perfect and the risk to reward was great. If I focus on the right setups with the right risk to reward the money will come. I always like to remind myself to focus on the fact that good trades are trades where you follow your process, regardless if they are winners or losers. If I Focus on good process, I will win over time.
Joel Stahl
Thanks, Joel, for the illustration of a good trade. I would love to see more set ups to get a better idea of what we should be looking for.
Posted by: Dweller | November 14, 2007 at 02:15 AM
Great example of an intraday trade with a 2:1 reward/risk ratio in your favor. Glad that you emphasized why you would take the trade again even if it didn't work out in your favor.
Posted by: Day Trading Stock Tips And Lessons | January 28, 2008 at 11:12 AM