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ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Quote from OldTrader:
Really this is an easy issue to resolve. Just post a wider stop, and adjust it as your trade progresses, or simply close out when you want to.
I almost always use a wide stop in my real trading, let alone this journal. Normally 10-20 points is what I'm comfortable with. But, I rarely get stopped out at that level, because as time goes along I adjust the stop and/or simply close out my position. In my case, the stop is more of a fail-safe.
In real trading, I've done it both ways...hard stops, mental stops. I never quite understand the "mental stop" in the end. The fact is that if it's truly an important level, the price will blow past it so quick that you won't have time to close your position. And, I always wonder what it is that someone is looking at when the price hits a level where you have this "mental stop".
Not to mention these 1-2 point stops that I see alot of you guys using. I don't understand those at all. My personal opinion is that a stop of that type is way too tight, even for a day trader.
Either way, for the purpose of the journal it seems really easy to use a wider stop, the adjust or close out. No need to quit the journal.
OldTrader
Im really starting tosee the light on these uber tight stops, you end up getting stopped out of trades way early that would have been great i.e. my 2 longs at 1392 this am. i guess it's just part of the learning process though
Quote from Rtrader2525:
Im really starting tosee the light on these uber tight stops, you end up getting stopped out of trades way early that would have been great i.e. my 2 longs at 1392 this am. i guess it's just part of the learning process though
The way to use tight stops IMO is to make sure when you enter you know at what price you original entry is wrong or invalidated.
This way you get very nice entries based on your plan and you can use 2-3 pt (ES) tight stops without getting hit by the noise.
Whenever i enter a trade i see what level my entry is no longer valid short/long based on my plan and therefore i can use a tight stop. I will therefore only enter at a price in which my stop (usually 2-3pts) will be outside the level where my plan dictates that trade is negated.
I have found many times that if you jump into a trade impulsively that your stop has to be larger for the original entry to be invalidated. Avoid being impulsive and simply play the probabilities.
There is no need for large stops in day trading as markets like the ES are very efficient in some respects. Entry to me is what matters most in trading.
Quote from fearless9:
Risk Mins risk.
It is only about risk.
Entry is a part of the sum and the sum is risk.
regards
f9
Yes obviously Fearless but with good entry risk is always very small on each trade. I don't use standard 2-3 point stops as stop is only based on price action. Therefore, sometime stop maybe 0.5 pts or 1.5 pts.
Risk never more than 3 points on any trade. Entry to me dictates my risk.
Quote from Mins:
Yes obviously Fearless but with good entry risk is always very small on each trade. I don't use standard 2-3 point stops as stop is only based on price action. Therefore, sometime stop maybe 0.5 pts or 1.5 pts.
Risk never more than 3 points on any trade. Entry to me dictates my risk.
fair enough
regards
f9
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