ES Journal Archive (2006 - 2008)

[Buy1Sell2]

Quote from johnpinochet:

Buy1Sell2,

I find your posts to be interesting all of the time and I try to learn from your trading, however, I don't quite follow this one. Would you be able to elaborate? You are maintaining a stop of 280.00? Have I understood your post?

Regards,

John

Yes, I am demonstrating that when one sells in an oversold market, one must have a wide stop in order to give themselves a chance to be profitable at some point. Otherwise, the trader will be stopped out many times and eventually end up with more losses and commissions than the original wide stop would create. The other option would be to wait for a new sell signal where the stop could be placed much closer.

 

[Lawrence Chan]

Quote from Jahajee:

I think it will be another wild day -- may go as low as 770 and as high as 840.

The backdrop of this pop up (i.e. Citi rescue) is very odd.

First, it avoided bankrupcy, ok.

But, its bad mortgages will stay forever bad (super discount payment for the disstressed owners) and it cannot issue foreclosure on anything into the future. Isn't that subsidized housing?

That cannot be good for its earning ...

I may have to wait for the open to see what the actual impact is

Edit: My logical thinking says most if not all mortgages hold by such banks in the future will be collecting this kind of "discount payments" in the very near future

 

[Buy1Sell2]

Quote from Tradethefade:

Jack---------

Please refrain from posting analysis of Jack Hershey here. There are other places for that. If you would, please delete your previous post. Thank you in advance for your consideration.

 

[Lawrence Chan]

818 shut out play again, implying at least touching 778.

808 trend line defense ... if successful, will upset the shorts leading to 840.

 

[ggoyal]

Quote from Buy1Sell2:

Yes, I am demonstrating that when one sells in an oversold market, one must have a wide stop in order to give themselves a chance to be profitable at some point. Otherwise, the trader will be stopped out many times and eventually end up with more losses and commissions than the original wide stop would create. The other option would be to wait for a new sell signal where the stop could be placed much closer.

so you are not daytrading obviously, more like swing trading. correct?

 

[startraitor]

Looks like a brick s...house at 825-28 and some early, shorting 23.75,25, and 28, 1st target 808, stop 35

 

[Buy1Sell2]

Quote from ggoyal:

so you are not daytrading obviously, more like swing trading. correct?

I am looking only for extended gains with minimal commissions.

 

[HooLee]

Quote from Buy1Sell2:

I am looking only for extended gains with minimal commissions.

Only way to have extended gains is to forget about support in a downtrend and resistance in an uptrend. IMHO

 

[Pekelo]

Quote from Buy1Sell2:

Short one contract at 795.00
Initial stop 1075.00

This trade is meaningless because:

1. Either win or lose, it won't effect your portfolio because of its small size.

2. Nobody trades here with 280 pts SL (or should).

3. Chances are that it will expire sooner than any meaningful profit can be taken.

Not to mention it is against my bullish view.

P.S.: we are just reaching the SMA on the daily around 835, a nice try for a short....

 

[Buy1Sell2]

Quote from HooLee:

Only way to have extended gains is to forget about support in a downtrend and resistance in an uptrend. IMHO

This is correct. I will be rolling the short into March at the appropriate time.