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Anek, Quite the contrary.....my success is based primarily on my ability to read price action. The ER2 takes dramatic plunges into extreme levels when stops are being hit and when they are finished getting run the instrument reverses. It happens again and again and again. It happened on...

Yeah but the evil-doers will probably know better next time.

Just from skimming the article, I completely agree with this, "3. Use the next highest time frame from your preferred trading time frame to decide where to place a stop." If I trigger on the 1's I stop on the 5's. I'll read it over the weekend. Thanks.

You are exactly right. On one hand, these two giants need to go under but letting them go under would mean massive unemployment, and a depression at least equal to the one in 1929. The housing market would cease to exist, which, in turn, would also crush the financial markets. It would be a...

Another concept that is often missed in trading, that is somewhat related to money management and stops, is the true support and resistance levels of the market are diagonal, not horizontal. A stop should <b>never</b> be placed below a horizontal level of support but that's exactly where they...

And be sure to keep in mind how well the SEC/CFTC is doing at keeping non-accredited investors out of hedge funds - even though they are sophisticated enough to understand the risk but aren't loaded - and turning them toward much safer investments like F, GM, FRE, FNM, CROX. Oh yes, we cannot...

Don't forget the FDA!

I got the same problem. That damn P/L! I just accepted it and trade with that handicap, if you want to call it that. There are times when I take them and regret it and times when I don't regret it. It all comes out in the wash. If you can't let profits run then take them relentlessly and...

Interesting. I don't remember that but I definitely believe you. Not that long ago they added C, AIG, and many others that don't come to mind, to their "just sell list." These groups have done nothing but go up since. It's been my experience that GS is just horrible at recommendations, but...

Didn't they say in a year or so? Don't recall exactly, but I don't think they said next week. Summer is winding down so it's logical the greasy stuff would fall off.

Very interesting research and I couldn't agree more. Random stops create a series of small losses but no stops leave you open to one massive loss, which can be equally as destructive. Trading is an art, not a science, and it should come as no surprise that knowing how and when to use stops is...

These are some very valid points. Technology failures have to be planned for and adverse news has to be planned for so you need to take your max risk tolerance and decrease it for "shit happens." I've had the news thing happen to me. The technology thing hasn't <b>yet</b> but that's because...

I did try that and I had a 65% win rate and stops were mandatory. I win over 90% of the time this way. I like this better. As I mentioned in the opening thread, there are many ways to skin a cat. What works for me may not work for you, or vice versa. Just do what works.

Exactly Pholeuon! Thank you for the clarification, there's a big difference. Every order I put on the market has an OCO attached but the stop is away. I leave it hanging out there for a time I need it, and there are definitely times I need it!

Alright, I'll give you a little more. The S&P is based on 500 stocks while the Russell is based on 2000. Since the Russell has very low volume, cheap stocks in the index, and trades more thinly than the ES the volatility is higher, but that pushes the market to extremes faster. Generally...

Trading is all about "risking a little for a chance to make significantly more... over and over again". -------->>> Now this part I agree with, and; "If you can't accept that, why don't you just send me half of your trading capital and spend the other half on hookers and cheese... we'll both...

I see. So 4 losses instead of 2 wins, with one being a very nice one, is the preferred method? My God, you guys are clueless.

Yeah I know, I laugh my stupid ass off all the way to the bank! Gnome, you make it sound like I will just keep buying and buying and buying and buying and buying and buying and buying and buying and buying and buying.....until I eventually show a profit. Now I agree with you here, that...

Nope, not saying I don't lose money but when I do I determine when and how I lose it, not the market. And to whoever else wants to tell me I'm going to blow up and that I'm not using money management, you're dead wrong. I trade small with a large account and manage the fluctuations of the...

Thanks for the heads up on that book. I'll check it out. There's another element to this strategy that would take WAY too long to explain and that is time. In a nutshell, the longer the market goes sideways w/o showing you a profit the greater the risk becomes and stopping out may be...