ES Journal Archive (2006 - 2008)
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Athough this site is overkill in regards to your question, it should answer all your questions (and more) in a snapshot glance.
ETF's ve. E-Mini's
Just remember, the more leverage a trader uses, the more sophisticated they have to be.
Good trading in '08,
I
its a small possibility that the shorts keep pushing it...
but excessive leverage used to push it, needs to be removed before a significant event, such as NFP, thats the basis for the trade.
but excessive leverage used to push it, needs to be removed before a significant event, such as NFP, thats the basis for the trade.
Quote from Icarus5:
None of my charts show a weeks worth of data holding in one direction do they?
They show charts where positions (hence the word, position trading) are held for anywhere from 2 to 5 days to catch the bulk of the move in the direction of the trend for the period of time in which you are trading.
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But since you decided to go there:
Your argument (despite the fact that I never mentioned holding for weeks on end) regarding trading on a longer time-frame (weeks, to be exact) is actually quite spurious and shows, well, a certain lack of knowledge and sophistication on your part in regards to trading.
This intra-day scalping "catch the latest wiggle" in the E-minis isn't the only type of trading (though it is quite lucrative when you get the hang of it) that people can do.
Historically, many traders have held positions for months and even years if the trend which they determined according to the fractal (very important word, that one) they observed gave them a signal to do so.
Examples:
1. Currencies are dependent on a country's global monetary policies and can trend for years in the same direction.
2. Financials depend on a countries' policy towards its big business, populace and taxes. When the climate is right, it will grow like wildfire and continue to move in the same direction for years at a time.
3. The metals, Gold, and energies, Oil are affect by still other criteria which includes supply/demand and political unrest ... once again a trend is established and (obviously) can (and does) go on for years.
4. Total Supply/Demand game for Ag, with similar results.
Etc.
Don't make me post charts ...
Good trading in '08,
I
Well I am just a village idiot in comparison to some here, so what can you expect hey?
You did say position trading, to me that means a lot more than 2-5 days, 2-5 days comes under swing trading. I don't scalp, I daytrade personally.
All I was saying at the time how not easy it is to trade off weekly charts (I failed to notice time frame of your charts). Good luck in 2008 with swing trading.
Edited - I remember reading in this journal when you previously tried swing trading and got cained on a YM trade after hours or pre-open, I can't remember that far back (I believe it was YM), that means you would need to reduce position size to avoid that happening again.
You can think of spy as the future without the time premium plus dividends, similar but not the same as $spx.x. They will not move the same as the future has time value depending on what day you buy it, this site is helpful.
http://www.indexarb.com/fairValueDecomposition.html
buy stop 78...
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