ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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I agree with you 100%.
If someone else does not, don't worry about it, just keep doing what you know to be correct and build your wealth.
Good trading.
Not to start a fight here ...
The reason some people view that money management is the only critical component is for a very good reason.
Consider this - if a market move in perfect sin wave, where it goes up and down, in perfectly predictable manner, then entries that are random WILL be profitable as long as the stop loss is set outside of the range that the wave covers, and that profit is protected with a tight stop. The worse case scenario here is that you bought the top and from that point onward there will be no more trade.
For those who use a high leverage, such trading style is less than acceptable ... thus the attempt to time the cycles, to find better entries and exits.
Thus the core difference is not that who is right, but the very choice that one makes on how to engage in trading, would determine the requirements needed to be successful.
i.e. requirement of precise entry and exit is a function of the leverage being used
Did both extreme. Prefers the lower leverage way as I aged.
The reason some people view that money management is the only critical component is for a very good reason.
Consider this - if a market move in perfect sin wave, where it goes up and down, in perfectly predictable manner, then entries that are random WILL be profitable as long as the stop loss is set outside of the range that the wave covers, and that profit is protected with a tight stop. The worse case scenario here is that you bought the top and from that point onward there will be no more trade.
For those who use a high leverage, such trading style is less than acceptable ... thus the attempt to time the cycles, to find better entries and exits.
Thus the core difference is not that who is right, but the very choice that one makes on how to engage in trading, would determine the requirements needed to be successful.
i.e. requirement of precise entry and exit is a function of the leverage being used
Did both extreme. Prefers the lower leverage way as I aged.
Quote from Lawrence Chan:
Not to start a fight here ...
The reason some people view that money management is the only critical component is for a very good reason.
Consider this - if a market move in perfect sin wave, where it goes up and down, in perfectly predictable manner, then entries that are random WILL be profitable as long as the stop loss is set outside of the range that the wave covers, and that profit is protected with a tight stop. The worse case scenario here is that you bought the top and from that point onward there will be no more trade.
For those who use a high leverage, such trading style is less than acceptable ... thus the attempt to time the cycles, to find better entries and exits.
Thus the core difference is not that who is right, but the very choice that one makes on how to engage in trading, would determine the requirements needed to be successful.
i.e. requirement of precise entry and exit is a function of the leverage being used
Did both extreme. Prefers the lower leverage way as I aged.
point well taken. after working on Wall Street as a systems trader for many years I can tell you that I have traded 100' s of systems with REAL MONEY and I know what works and what doesnt. It doesnt mean that people still won't argue their respective points of view though. Thats what makes this forum so great........."The market place of ideas".
Quote from Lawrence Chan:
Not to start a fight here ...
The reason some people view that money management is the only critical component is for a very good reason.
Consider this - if a market move in perfect sin wave, where it goes up and down, in perfectly predictable manner, then entries that are random WILL be profitable as long as the stop loss is set outside of the range that the wave covers, and that profit is protected with a tight stop. The worse case scenario here is that you bought the top and from that point onward there will be no more trade.
For those who use a high leverage, such trading style is less than acceptable ... thus the attempt to time the cycles, to find better entries and exits.
Thus the core difference is not that who is right, but the very choice that one makes on how to engage in trading, would determine the requirements needed to be successful.
i.e. requirement of precise entry and exit is a function of the leverage being used
Did both extreme. Prefers the lower leverage way as I aged.
This is very very wise, drop a rock in a pond how far will the wave travel, we don't really know, 2 sigmas 8, 50? entries aren't that big a deal playing small size as the loss is small, most experienced players will only trade or lose a % of the account.
If there is no good news released, 1000 will be tested.
market wants to go lower. what makes it a scary place is the slow grinding way that its doing it. When the short sellers are allowed to play again on Thursday/Friday then you will see a massive selloff that could last for days to come. The Dow 800+ point drop will be nothing compared to what could come by next week.
:eek:
:eek:
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