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I've shown them in this book. A breakout from matching congestions, my four major entry signals, my intermediate and minor signals - all are explosive situations.

My own preference is major entry signals. They don't happen every day, and that is one of the main reasons I will not trade every day. I want the greatest chances for success when I trade. Explosive situations give me that chance.

When I began trading this day, I had no idea how well it would turn out. Not all my trading days do as well. Yet I find I have trading days like this quite often. I HONESTLY BELIEVE IT IS MY TRADE SELECTION THAT IS IN LARGE PART RESPONSIBLE!! Ninety to ninety-five percent of traders overtrade. They trade too often and too much.

1 have seen many futures contracts make beautiful one day moves on the daily chart, yet had I traded them intraday, I would have been chopped to pieces. Conversely, I have seen "nothing days" like the one I just completed in the S&P, where on the daily chart the whole thing amounted to not much of anything, yet intraday I've made a lot of money.

This is not an uncommon occurrence when daytrading. If a nice move on the daily chart occurs gradually intraday, I often lose because I get whipsawed by the shallowness of the ascent or descent. On the other hand, if the market moves steeply while still giving me a chance to get in, I may have a great day intraday, while the daily chart shows a "nothing day". Such was the case with this last S&P trade.

A significant lesson I hope I have taught here is the importance of size, and correspondingly taking just a few ticks out of the market on a portion of the position. If the market runs, the remainder of the position will take care of the big profits.

Chapter 29

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