When I talk about paying for my trades what I mean is-i take some early profit to mitigate or remove my risk. eg, if I am long or short of the opening range in ES I cover 1/4 or 1/3 of my position for 4 pt profit to remove my risk and move my stop to breakeven or scratch.
Once I pay for my trade I have 3/4 of my position left, i will take 25% off for profit at the next target and have half my unit still on for the longer intraday target and the last 25% or 1/3 on as my runner.
After I pay for my trade I remove risk and mock in profit, I put my feet up and let the market either scratch me out or pay me and build a position. I learned to let the algos or programs do the work I used to do as a market maker in the NQ pit. It allows me to sit with a trade
A lot longer then I ever would have.
I hope that helps and makes sense. Lots of questions about what I mean by “paying for my trade”. I literally mean locking in short profit so I can then scale out and build positions on trending markets with very little risk to no risk. It give me a free trade as long i use stops
