Thats why I use a tight stop. Since its not a higher probability but a good risk/reward. I caught almost 7 points before using a 1.5 point stop by recognizing when the support "cracked" and that if they reversed it, the trade was over. You don't need more than a small stop for that kind of trading.
ES Journal Archive (2006 - 2008)
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Thats why I use a tight stop. Since its not a higher probability but a good risk/reward. I caught almost 7 points before using a 1.5 point stop by recognizing when the support "cracked" and that if they reversed it, the trade was over. You don't need more than a small stop for that kind of trading.
Ya i hear you but risk/reward can be anything you make it.
I may have a 10 point target on each trade - with a tight stop. Therefore, i have great R:R - does not make it a good trade.
Major issue with using R:R like that is looking for expected profit target with a high probability of getting hit without any retrace.
That's the way i view it anyway - when using tight stops i would never want to short right at the lows especially at a support zone as they gonna turn it slightly to take you out.
Good trading
Yeah I know what you're saying. You can definitely camoflauge a bad trade by saying the R/R is good.
Anyway, here is a trade where I use a larger stop because I consider it higher probability.
Short 1995.25 stop 1998.25 target 1984.75 (maybe 1987... gotta see)
Anyway, here is a trade where I use a larger stop because I consider it higher probability.
Short 1995.25 stop 1998.25 target 1984.75 (maybe 1987... gotta see)
Yeah, its anything but definite. Just trying to stay with the trend and picking targets just before expected support levels. I don't enjoy having those days where you look at the chart at EOD and say "all I had to do was get short with a small stop and I could have ridden this thing all the way down", ya know? 
Downward sloping TL broken, not looking good.
Downward sloping TL broken, not looking good.
Quote from tommymoose:
Yeah, its anything but definite. Just trying to stay with the trend and picking targets just before expected support levels. I don't enjoy having those days where you look at the chart at EOD and say "all I had to do was get short with a small stop and I could have ridden this thing all the way down", ya know?
I hear ya, its just probabilities at the end of the day. Sticking to a trend system then there is no way that any trader could not have scored a lot of points of the shorts today.
Got to stick to the plan and keeping taking those shots if opportunity is there.
Object for me is not to catch all moves just a little chunk of each on going with the trend.
I am always a little bit more worried with my shorts after we already had a 3 wave move down and my turn zone at 76-78.
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