ES Journal Archive (2006 - 2008)

[Pekelo]

Quote from Buy1Sell2:

I am diversified across a number of markets for two reasons. 1, To not get hammered in one individual market--- ...Also keep in mind that I am closing in on 200 points unrealized gain in my NQ trade which is the bulk of my equity futures position right now.

2 Observations:

1. Being long both ES and NQ are basicly the same positions, because they are VERY correlated. So I don't see any diversification there.

2. Last Thursday NQ went from 2215 to 2145. Since you have been long from 2026, that was a 30% loss of unrealized gains on a FULL position. (there was another 25% drop yesterday) Is there a stop loss on that one?

 

[Buy1Sell2]

Quote from Pekelo:

2 Observations:

1. Being long both ES and NQ are basicly the same position, because they are VERY correlated. So I don't see any diversification there.

2. Last Thursday NQ went from 2215 to 2145. Since you have been long from 2026, that was a 30% loss of unrealized gains on a FULL position. Is there a stop loss on that one?

1. That is right. The ES position is much smaller than the NQ position and I only put it on as a demonstration of a trend following trade.
2.No hard stop on NQ. My style of trading allows for giving entire profits back and then some in the pursuit of the homerun. I generally take profits when I see a trend reversal on a longer term basis.

 

[dmartin]

Quote from Buy1Sell2:

1. That is right. The ES position is much smaller than the NQ position and I only put it on as a demonstration of a trend following trade.
2.No hard stop on NQ. My style of trading allows for giving entire profits back and then some in the pursuit of the homerun. I generally take profits when I see a trend reversal on a longer term basis.

From my experience Buy1 Sell2 by the time the longer term trend has changed (assuming one can figure that one out with consistency) your gains are in the red which is now true of your ES position.

 

[fearless9]

This discussion is why I maintain that ET is a fascinating pyramid of human achievement.

A place where readers can observe and ultimately draw their own conclusions.

 

[Buy1Sell2]

Quote from dmartin:

From my experience Buy1 Sell2 by the time the longer term trend has changed (assuming one can figure that one out with consistency) your gains are in the red which is now true of your ES position.

From time to time though, I hit homeruns with a full position on and that is all I want as it more than makes up for the smaller gains here and there that I miss as well as the numerous small losses and commissions.

 

[dmartin]

One further question Buy1Sell2 which you have never answered. Why didn't you take just a small amount off at resistance levels in the S&P which have proved formidable in the past few years?

 

[Buy1Sell2]

Quote from dmartin:

One further question Buy1Sell2 which you have never answered. Why didn't you take just a small amount off at resistance levels in the S&P which have proved formidable in the past few years?

As a rule, If I take some off, then I need to remove all positions. I do not believe in trading partial positions. I want my full position on when the trade goes to the moon. It also reduces the decision making. The less decisions, the less chance for stupid decisions.

 

[dmartin]

Quote from Buy1Sell2:

As a rule, If I take some off, then I need to remove all positions. I do not believe in trading partial positions. I want my full position on when the trade goes to the moon. It also reduces the decision making. The less decisions, the less chance for stupid decisions.

Thank you!

 

[smilingsynic]

Quote from Buy1Sell2:

One further item-- I never put on a position in a daytrade that I cannot hold overnight. I always trade in the direction of the predminant longer term trend for that very reason. Also, thank you both J's for the defense. --All are welcome here--all opinions excluding personal attack and foul language are welcome here--

If you hold overnight, it is not a daytrade anymore. It is a position trade, and position trades entail more risk.

I don't know how long it has been since I have heard a daytrade going 20 points against.

As I said before, the longer one is in a trade, the riskier it becomes, since time = exposure = risk. Good luck to you.

 

[Buy1Sell2]

Quote from smilingsynic:

If you hold overnight, it is not a daytrade anymore. It is a position trade, and position trades entail more risk.

I don't know how long it has been since I have heard a daytrade going 20 points against.

As I said before, the longer one is in a trade, the riskier it becomes, since time = exposure = risk. Good luck to you.

That's exactly right. I really never put on a daytrade. It's just an entry on an intraday chart.