help needed

after bracketing the first hour on a 10000v chart i noticed that the es kept coming up to the 1345 area and was turned away about 4 times, the trin kept dropping and i saw what looked to me as a reverse head and shoulders. I watched the breakout and bought the pullback to the 1345 area, since I am very new to daytrading can someone tell me if this play was the right call even though it worked in my favor, I want to trade good setups not just get lucky! I have yet to figure out how to upload a snapshot of the chart if someone could help me or upload todays 10000v chart. Thanks in advance!
Sean

If I read your description correctly, it sounds like you did the following:

1. stayed on the sidelines while the market was caught in a trading range / chop

2. recognized the consolidation pattern and the subsequent breakout from it, in other words, you let the market decide the direction it wanted to go once it broke free of the range.

3. you entered at a logical point (price support) in harmony with this new trend direction.

4. the market rewarded you with a profit.

Trading consolidation/range breakouts is a common trading strategy, usually associated with trend following and momentum based trading styles. Just keep in mind, not all breakouts will "stick", resulting in the potential for a loss if the breakout fails. Thus, as with any trading method or style, it is important to always use an appropriate stop loss strategy.

Thanks pt_emini, Ive watched the market do this several times on the chart over the last 2-3 weeks and figured with a tight 1.5-2 point stop it was worth the shot. For the record this was the first time I actually traded it as I am trying to get comfortable watching the charts.

Sean, looks like you've already got a good grasp of the basics of a breakout strategy for a beginner. My question to you is: What would you have done if it hadn't gone your way? Would you have taken a small stop and left it at that? What would you do if you got stopped out and then the market turned and went in your direction? Would you have jumped back in? Controlling your losses is just as important as taking the profits.

Well done in a profitable first trade!

I place my stops with ninja trader automatically and have sim traded and taken losses, I used to look for any excuse to jump back in but now I keep telling myself that I can always get another trade, just let the trade come to me. I realize Im no expert trader but I think trading is not just about set-ups but also state of mind, when I took my trade today I didnt get excited that I profited and I wouldnt have been upset if I got stopped. I am trading very small to my overall account and feel this keeps my objectivity.

You have an excellent and very mature attitude to day trading. I think you'll do well.

OK, today I bracketed the first hour again. after watching it break through I put a fib from the high of the run up at 10:15 to the low at 11:00 and again at 11:20, the 50% retracement lined up with the bottom of the first hout bracket, the total days fib retracement from high to low was also around 1361 so I figured with a 2 point stop and entry at 1360 it was worth a shot. With one contract I was able to get to 1353.75 which was the low till then. Feel free to comment on this trade if anyone doesnt agree with what I did. I feel posting my trades will only help me and a lot of other new daytraders.

Great trade and congratulations on another winner. My only concern is that you are not trading a method but some feelings. You might be one of those rare traders that can very quickly develop an insight into the market and through watching the action be able to read the chart intuitively. If so, then you will do well with this approach. However, if this is luck then you need to be using a system which over the long run will be more right than wrong or produce much bigger winners than losers if it's not right more than 50% of the time.

That's just some food for thought.

Also, you seem to be controlling your risk very well by using 1 contract, having a well defined stop that you will take and not trying to over-extend yourself. If you keep at it and continue to profit at this rate then you will have a very good return on capital.

From my calculations you made 6.25 points today and I'm guessing 2+ points yesterday so that's 8.25 points or $412.50. Considering that the margin that you needed was probably $2,000 then your return in 2 days is.... 20.6%. If you stopped right now then you will probably beat 99% of all fund managers this year.

[Edit...]
I didn't take commissions into account. Those trades would have cost you about $10.

Careful with that endorsement Ill advertise "20% return in 2 days let me show you how". Seriously though, I have been looking at market profile to help me trade and if Im right today was an open test drive, it hit resistance at around 1370 which it has run into 3 times in 2 weeks and it didnt get any higher in pre-market, since I missed the buy at the cross of the open I know that people buy a 50% retracement of the down move. The other day was also market profile related in that I bought the test of the breakout of the IB. I am still learning but Ill heed your advice and I wont let this go to my head.

I'm enjoying your comments. You appear to have a very logic yet natural approach to this.