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joshdance: You need to remove time from the equation. One of the trap's is trading on a time based chart. I use mainly a 6PF (reversal chart) for entries in the spoos. I work off the last weekly swing for volume profile purposes. Charts attached... Ronnie

FP: By "risk management principles," I meant that I had no concept thereof... I used to be right so often (fading extremes) that when a trend day came along, I'd repeatedly try to fade (having been right 83% of the time or whatever the stat may be). That proved very costly when trend days came along the other 17% of the time. In my defense, as I've grown as a trader, I'm now usually on the right side of the trend day. I normally take just one ES trade per day, especially if it's a winner. I may take another if I miss the first to get my loss back. I trade primararily during the 1st 2 hours of the ES when there is plenty of liquidity. Each time you enter a trade you are assumming risk so why do so unneccesarily? I sometimes make a 1st hour bond trade, but even if I don't, it gives me so much of a better feel for the ES come that opening. Stop placement needs to be based on structure. Period. If that's too much of a monetary risk then contract size needs to be reduced accordingly. To the amazement of the mentors who I am eternally indebted to, I've brought my individual risk per trade down to -4T, which is really nothing more than noise in the ES. I just prefer stopping out and re-entering if structure demands a larger stop. And once you get better at reading flow, you'll begin to see the traps and when traders are trapped underneath/above a level. Ever wonder why you get stopped out and then trades resumes in the direction you anticipated but you're left behind. Larger traders know that retail is using 1-2 handle stops. That's not to say that you should use a larger stop, but rather devote some time to reading flow and understanding the retail mindset. In addressing the professional trader, at least the ones that I workd with, they would populate orders at the front, middle, and back of the level because they couldn't be sure exactly where the turn would be. And they would do this and trade every level, because statistically and mathematically that was their proven edge. Yes, on trend days they would have small losses, but they had a mathematically edge and those losses were viewed simply as a cost of doing business. They traded mutiple models (swngs, etc) in order to smooth results. This is the true essence of professional trading. But the bulk of profits were obtained by trading large numbers of contracts in low volume areas as markets tend to grind in those areas when revisiting and it was a simple matter of "grinding it out." Not to yank my own chain, but I improved accuracy dramatically by incorporating volume breakdown and deltas in BALANCED MARKET situations, and adopting a different strategy for OUT OF BALANCED (trend) situations. Hopes this helps a bit... Ronnie

Be careful in the bonds/notes... Fixed income is propogated mostly by institutional traders who are very savvy and therefore the most difficult to trade. I do okay because I have access to floor information and paper's levels but even with that I spool my contract size way down (especially with the ZB). I will however trade them when ES volatility is up or use them to trade the spoos when the inverse trade is on. The good thing about them is that risk can be held to just a tick or so. They'll turn on a dime, unlike the ES. That should tell you something about who is across from you in a bond trade. Much more to be aware of in the bonds/notes also. Auctions for example, and the games dealers play in order to push yields up/down early in the session in order to fulfill their agenda come the auction later in the session I was a victim early in my trading career, not understanding the true composition of the bond/note markets. Exercise caution... Ronnie

There were so many things that flew in the face of popular (mis)conception, and those things were learned over a period of time by submitting my trades to them and then receiving feedback. So as far as a concise list of do's and don't's (aside from the obvious with regards to risk control and aversion - limiting to a single trade per day during the early AM when liquidity is high - remembering that each time you take a trade you're subjecting yourself to risk - most times unnecessarily), it would take a novel to teach all of the principles. Most traders have the mis-conception that professional trading is holding for enormous gains. They do in fact have certain mathematical models that do such that, but from day to day they are mainly trading in rejection areas (LVN's), profiting on the daily grind as the market tends to turn and/or backfill in those areas. These guys are running multi-million dollar offshore accounts for clients and their clients understood what real trading is all about. When trading large amounts of contracts, huge profits can be made by simply grinding out from day to day. I worked with them for about 5 years, the last 3 hanging around in order to help some of the more novice traders coming on board (they limited the membership to 50 traders worldwide because of time contraints upon themselves. I felt that I had my own debt to repay, and during that time I made the methodology they were teaching my own and grew into my own. I was catching many of the same trades of some of their other models (which they weren't sharing due to trying to help without complicating matters with various different methodologies). They traded many models in order to smooth results. I don't mind posting my trades and descriptives, even the pre-market analysis, for those serious traders interested in learning market structure and making the transition into the foray of professional trading. I have a FaceBook site that I post for the beneft of other traders I'm trying to help. If interested in the link, send me an email. Ronnie

Yes. I have been making my living solely trading the ES for the past 3+ years. But I must say that before then I was a horrible trader (primarily due to poor risk management principles). Giving back weeks of profits being on the wrong side of trend days. It was only due to the efforts of some prop traders (and this is not a plug - won't even mention their firm) that turned my trading around. I can't even count the number of accounts that I blew out. I'm new to posting on this board and because those prop traders took the time to help me, I feel that I have a debt to repay by helping others. True professional trading has nothing to do with setups, technical analysis, or any of the commonly accepted garbage that is out there. I have nothing to gain. nothing to sell, and my only motivation is to help traders who are in search of valid trading information to fill the void... Ronnie

ES is the easiest to trade due to the preponderence of novice traders who have no concept of risk management and risk aversion tactics. Fixed income on the other hand (bonds and notes), populated by savvy institutional traders, is much less forgiving.... Ronnie

Years ago, after blowing out a few accounts, my trading was turned around by a group of prop traders who wanted to give something back to the trading community. With the help of those traders, I was able to learn to read flow and learn market structure. I have been profitable for a number of years now. I feel that I have a debt to repay and have been helping other traders for quite some time now. I'm not selling anything, nor do I ask for anything in return. With all the garbage and broker sponsored methodologies out there, it is very difficult to find valid trading information. Independant traders are therefore at a severe disadvantage. My only desire is to give back to the trading community.... Ronnie