Over the past few weeks I’ve been guilty of posting the bigger winners of the day. Four-figure wins garner more attention and apparently it’s what people like to see, so I feel mostly justified in favouring them here. But it’s important to remember that the bread and butter of the business is the regular smaller trades that come along day after day. Trades like this one:
This little short on DD is what 80% of my trades look like. A regular setup (a bit messy at the open, but it sorted itself out), a confluence of signals, and a nice easy entry on momentum. Then an exit at an obvious place or, as was the case here, when the momentum simply runs out.
$280 is not going to make anyone rich, but that’s not the point. The point is that we can always find a few of these each day. They add up to a nice profit at the end of the morning.
That’s not to say the bigger winners don’t count as well. Here’s the now almost compulsory ROKU trade for the day:
ROKU is the gift that just keeps on giving at the moment. I was a little wary of the blue line here, especially as we had only just crossed the MA, which is why when things slowed down I got out quickly. That’s the thing about momentum trades — when there’s no more momentum there’s no more trade.
These five-to-ten-minute four-figure profit trades certainly look more impressive, and it’s fair to say that between ROKU and TSLA there’s usually at least one out there every session. But it’s important not to lose sight of the simple, smaller bread and butter trades like DD above. They can be relied upon to put food on the table day after day.