ES Journal Archive (2006 - 2008)

ammo · Oct 21, 2008

may be an nside day til 1 pm ,pek's avg next day after trend day

Buy1Sell2 · Oct 21, 2008

Quote from Lawrence Chan:

B1S2,

I think another factor affecting people is how and where they start their trading career.

For those start with very small stake and work it up, the only viable strategy available to them is scalping or riding several points at a time in order to build up their trading capital. Then in turn, the experience and training limited them from riding bigger trends.

I agree that this is why people take to scalping etc. when they start out. This is one of the reasons though that so many fail. They are undercapitalized and are requiring themselves to be right a lot of the time. So, in essence, they go into the fight with one hand tied behind their backs. The proper way to learn trading is by positiion trading successfully first and then lowering the timeframes. What should be done by the new trader who feels that they cannot "hold" a position, is to learn trading with smaller contracts like Corn, Oats, Mini corn and the like even though it may seem boring. Today's society wants instant gratification. --Sorry, it doesn't work that way--

Thank you for your contributions as always LC

Buy1Sell2 · Oct 21, 2008

---In my opinion, breakeven stops should only be placed once the breakeven stop is outside the noise. --

W4rl0ck · Oct 21, 2008

Can someone check the plug on the exchange computers?

ammo · Oct 21, 2008

short 72,looking for 62,stop mental for time of day rev,add 73.75,stop 77

startraitor · Oct 21, 2008

When a strategy is employed to enhance the returns of an underlying long, correlated portfollio I find some room for exception with your assessment. However, if one is trading to "grow" an undercapitalized account I agree with you.

Additionally per earlier posts, not all trade management or other instruments are posted in es journal due to constraints, this is for illustrative purposes only and it is what it is.

That being said, if a guy can skin a cat with his teeth, live and let live. Everyone has to eat! Good fortunes and blessings to all.

Quote from Buy1Sell2:

My view is that the "double bottom" on the daily is just a temporary respite and the downtrend continues. Either way though, the most important part of trading is controlling losses when wrong and letting winners run when right. This is more important than simple direction. This is where the rubber meets the road. I would tell you that the toughest part of trading is letting the winners run. Most traders will exit soon after an initial profit is shown. This is not the way to trade over the long haul. An undercapitalized trader, which includes most retail traders, will grab a quick profit in order to "grow" the account. It feels good to bank a win and have a high win ratio. This is unfortunately the undoing of most. A poster a while back said that with their R:R ratio of roughly 1 to 1 , that they only had to be right 58% percent of the time. --This is not the way to trade and grow wealth. --That individual is controlling losses for certain, but misses all the gains that a good trend can offer with perhaps the same risk. My view is that letting the winners run even with pullbacks is the better method and it is the only method that I employ on any timeframe. Good fortune to all--

Lawrence Chan · Oct 21, 2008

Quote from Buy1Sell2:

I agree that this is why people take to scalping etc. when they start out. This is one of the reasons though that so many fail. They are undercapitalized and are requiring themselves to be right a lot of the time. So, in essence, they go into the fight with one hand tied behind their backs. The proper way to learn trading is by positiion trading successfully first and then lowering the timeframes. What should be done by the new trader who feels that they cannot "hold" a position, is to learn trading with smaller contracts like Corn, Oats, Mini corn and the like even though it may seem boring. Today's society wants instant gratification. --Sorry, it doesn't work that way--

Thank you for your contributions as always LC

Thanks. Fun to post here when I am watching ES.

Actually, the scalping mode can be untrained once the person is determined and properly capitalized at that point in time.

It is pretty tough in the beginning ...

ammo · Oct 21, 2008

Quote from ammo:

short 72,looking for 62,stop mental for time of day rev,add 73.75,stop 77

out 75.75

Buy1Sell2 · Oct 21, 2008

Quote from Lawrence Chan:

Thanks. Fun to post here when I am watching ES.

Actually, the scalping mode can be untrained once the person is determined and properly capitalized at that point in time.

It is pretty tough in the beginning ...

Yes, it would be tough. Sort of like putting on pair of boxing gloves and going into the ring against the champion on the first time out. --I understand your statement, but the reality is that the vast majority will never see their account properly capitalized and get to the point where they could be untrained. It's much better the other way around, just as chess is taught on the longer frames first.

webbma · Oct 21, 2008

If margin requirements aren't an issue...why would someone trade ES over SPY or vice versa? or is the lower margin/performance bond requirements the main issue?