Sometimes traders can make mistakes due to too many historical order text displays that appear near the candles. If you place many orders in NinjaTrader, your charts can become cluttered with this order text. You can remove all the order text and disable it from occurring again by right-clicking the chart > Data Series > scroll down to Plot executions and select the “DoNotPlot” setting.
Another common point of failure is subjectivity. If you are using a trading system that allows for too much interpretation, the guessing aspect can lead to big losses. We prefer to stick to objective rules and follow those rules closely. This way, we avoid temptation of risking too much or staying in a trade for too long. The Trade Scalper is one such trading system that has concrete rules. Watch all the buy and sell signals that appear.
Indeed, a 2.25 point winner occurred with five contracts in place. With the E-mini S&P 500, each tick is worth $12.50. A point is considered to be four ticks. Therefore, one point equals $50. If you take the 2.25 points and multiply that by $50, you get $112.50. If you trade five contracts, multiply by five and you get $562.50. Remember, we are describing theoretical profit before any broker and/or exchange fees. Before trading, speak with a financial professional and a broker to see if trading is right for you.
Traders can also get tripped up when they enter trades too late. For many systems, the Trade Scalper included, it’s important to place the trade as soon as possible after the signal appears. In most cases, you will have to wait for a certain condition to occur before the rules of the method allow an action. Wait too long and the market could take on a new personality. If you are too greedy, “forcing” an entry may cause significant loss. Hopefully, your trading method accounts for timing. You may want to preconfigure commonly used profit targets and stop losses using the ATM Strategy feature within NinjaTrader.