Staying on sidelines for now as I was stopped out earlier on Fri for 33 point loss per contract on the short term trade and 20 points per contract on the medium term trade. Only looking long right now while weekly remains bullish. Not interested in going long this instant, but will post when I do.
ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Thanks for sharing that detalied level of information about your trading style and account size B1S2.
That's a great way of trading if one has those types of resources, but if you don't, you must adjust your trading style accordingly.
Regards
That's right. Most trading should be considered as a one contract affair which is the category that I would estimate most retail traders fall into. Thus, many retail traders are taking positions that are too large and thus have to fall back on "scaling" with stops that are too close.
Oh, I'd say that there's a pretty wide range between the one lot traders and someone who takes a 30 pt loss trading the ES, but thanks again for the info.Quote from Buy1Sell2:
That's right. Most trading should be considered as a one contract affair which is the category that I would estimate most retail traders fall into. Thus, many retail traders are taking positions that are too large and thus have to fall back on "scaling" with stops that are too close.
If someone is trading the ES and cannot take a 30 pt loss, then that individual should not be trading the ES and should rather be trading the cash index. Currently, a 30 point loss is roughly 2.17% of the face value of an ES contract. What would happen if there were another 911 and let's say the Globex goes down and doesn't reopen for 3 or 4 days? This might be a tragedy for everyone including the traders who thought that their stop would protect them. Trades should always be considered beforehand to be long term trades as a worst case scenario.
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