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I just read an article in the Dallas Morning News with the title "What if most people are above average?" by Faye Flam. It is a very good article. The part I think is more relevant to beginning traders is this: "The psychologists I interviewed brought up something called the Dunning-Kruger...

I know that is how it is supposed to be. But if it is arb'd the way I have heard, then it is not really doing that. Am I missing something?

No, as I have said, trading ES is the same as trading the large index. I said nothing about smoothing. My question is how can you apply TA to an index, which also applies to ES.

The premise is this - ES, arb'd to SP500, moves almost exactly the same as the index. Anyone trading the ES is essentially trading the larger index. Very relevant, since the larger index moves as an average of the underlying 500 stocks. I don't get the cow reference.

I think TA works, I just don't know why.

Something I have always been curious about. Since ES is arb'd to the SP500 index, and the SP500 index is a weighed average of the prices of 500 stocks, how can anyone use technical analysis on it? I can understand using tech analysis on stocks which are directly traded, but an index is just...

Look into weekly SPY options. The SPY trades similarly to ES and the weeklies are cheap, even fairly deep ITM.

Actually the markets were GREAT in August. SP500 had 3 intraday trend days in 5 days of trading. Trend followers dream! From my experience, daytrading is technical price action only. Trying to factor fundamentals into it, IMHO, is foolish.

I would use this time to papertrade their ideas to see if it is worth it.

I think the math appeals to a lot of people. On a $50,000 account you need to make $2500 a month. That is $2.50 a month on 1000 shares. This is non-compounded math. Sounds easy enough. Not so easy for beginners.

In the future you might consider buying protective puts.

Where is he now?

Actually that is my point. The commentator has no information on why he trades as he does. If he has a lot more capital elsewhere he might be comfortable trading larger sizes in his small account. The commentator is making huge assumptions when he tells him to risk less. He may not be risking...

Xela is no longer with ET.

Since a lot of ETers are bound and determined to tell others how to trade, what to trade, and when to trade, here is an option - Petition the government to limit the trade size of EVERYONE to 3% of an account, no matter how much money they have. Also petition the SEC to not allow accounts under...

A friend of mine took 2K and turned it into 20K in 6 months by going all in. He did it to demonstrate how he trades and he had the 2K to lose.This was not even 1% of his total trading capital, just one account among others. I never assume what another person's situation is.

I don't agree. I have multiple accounts and when I trade, I trade the total size I want to risk based on my TOTAL capital, not just the amount in one account. The guy who chastised the youtube guy has no idea of what his circumstance is.

I don't trade ES but here is my take anyway. If I am looking for good days to trade, I look to trade every day. Today was a good day to trade. If I am looking to take a day off, I don't care what day it is, I take the day off.

There is a difference between 3% of an account and 3% of one's capital.

I am a retired engineer and I can tell you the "fee" for an entry level job is a college education. When I have looked for a more senior position I have had to take tests to show I know the job I am applying for. Some engineering jobs require a Professional Engineer, which means more tests at...