Do ES daytraders fail because they use 2 point stops?

Trading for ticks is a form of addiction. I went through that stage myself years ago. All methods are used as an excuse to justify the addition. A false feeling of doing something worthwhile while you are actually playing with noise.

A master trader is one who learns how to position trade. Both technically and emotionally. Risk management is the key.

A wealthy trader is one who learns how to ride trends and make the most out of them. Trends of all kinds, lasting from a few days to several months.

Daytrading in itself is a game of survivorship. Those that win, do so accidentally, they are random picks out of a large universe of failures. Their success is totally random.

I am still a bit addicted so I day trade a small account ONLY in the direction of my position trades.
 
Trading for ticks is a form of addiction. I went through that stage myself years ago. All methods are used as an excuse to justify the addition. A false feeling of doing something worthwhile while you are actually playing with noise.

It's an addiction if you don't have a methodical way of trading the markets. If you're making impulse decisions, then sure it's an addiction just like gambling


A master trader is one who learns how to position trade. Both technically and emotionally. Risk management is the key.



So there are no "master trader" day traders? Only position traders?


A wealthy trader is one who learns how to ride trends and make the most out of them. Trends of all kinds, lasting from a few days to several months.


So you can only make money in trending markets?

You've made some pretty bold/general statements there. Be careful about the beliefs you develop about the markets. They'll limit your abilities more than anything else could.
 
Quote from jmcnabb26:

[BYou've made some pretty bold/general statements there. Be careful about the beliefs you develop about the markets. They'll limit your abilities more than anything else could. [/B]
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The same holds for you too. If you want to be a noise trader, be a noise trader. Nobody is stopping you. It's your money and it's your life.
 
traders of any instrument fail because they don't know wtf they're doing

'if you have to use a Stop you don't know what you're doing'

what - before you enter it - would constitute a 'wrong trade' ?

the longer the trading time period the less monitor time required

not using Stops means several techniques are available:
Rogue Trading - keep Buying/Selling at lower/higher prices
Close the trade when the price falls/rises above one's entry price
S&R trading - Stop and Reverse - or just Reverse which closes the trade and
enters a new one in the opposite direction
Reverse button - when available - trading is a lot of fun, a Real swinger's tool
 
Its not the stop. Traders fail because they do not take sufficient profits to offset the trading risks.

2 point stop with 1/2 point profit taking requires > 80% winners just to break even.

2 point stop with 5 point profit taking only needs 1 in 3 to be profitable.

2 point stop with 10 point profit taking only needs 1 in 5.
 
Quote from intradaybill:

The same holds for you too. If you want to be a noise trader, be a noise trader. Nobody is stopping you. It's your money and it's your life.
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It's all Noise. Long term, short term, it's random. Whether someone trades it using statistics and probability, or experience, they pick up on the characteristics that can yield a profit.
 
Quote from traderrn:

A 2 point stop in the middle of nowhere is no use. A 2 point stop which protects you from a critical PA level can be golden.

So it is not the size of the stop, rather the trading strategy and where the stop is, which is relevant.

Remember stop is there to protect your capital and you want to make sure you have good RR and overall positive expectancy for your system. Without these two, even a two tick stop will lead you nowhere.
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win
 
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