ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Quote from Buy1Sell2:
Yes , at a minimum. Don't think about my stop being a risk reward ratio. It's just there in case the sky were to fall. I intend on adding to the position on dips until I get the 12 minimum per contract.
that is a nice divergence man, to be frank I liked it so much that I went long 64.50 as well near the close after your call.
Hi B1S2,
I just started to follow this thread and have been catching up with the old articles. But have not gotten the exact answers to the following questions.
I can see how you enter the divergence trades. How do you decide the exit of your trades? What do you use to gauge when to exit? And when to take loss? I know you have mentioned that you usually don't put stop loss, if the market goes against you, you add to the position. However, what if the market goes against you 50 points, what if the market drop so much and produce big trough in histgram that clearly bursted the divergence (when you are long.)? Do you have any criterions that tells that the trade is wrong, you will get out?
Thanks. This is a great thread. Keep it going.
I just started to follow this thread and have been catching up with the old articles. But have not gotten the exact answers to the following questions.
I can see how you enter the divergence trades. How do you decide the exit of your trades? What do you use to gauge when to exit? And when to take loss? I know you have mentioned that you usually don't put stop loss, if the market goes against you, you add to the position. However, what if the market goes against you 50 points, what if the market drop so much and produce big trough in histgram that clearly bursted the divergence (when you are long.)? Do you have any criterions that tells that the trade is wrong, you will get out?
Thanks. This is a great thread. Keep it going.
Quote from Buy1Sell2:
Yes , at a minimum. Don't think about my stop being a risk reward ratio. It's just there in case the sky were to fall. I intend on adding to the position on dips until I get the 12 minimum per contract.
B1, you mentioned that you have been position trading for 25 years now, successfully, perhaps you can tell us something about your experiences (pos & neg), I am, personally, very interested to hear about your estimation process of O/B areas of S&P, is it really just technicals on longer time frames?
Thanks for the interest. This answer would be too long, so I'll put it in a list format:
Highlights(some of them) in no particular order would be :
--Long the Soybean Market of 1988
--Short the 87 SP Crash
--Getting the reversal nailed in the Euro futures at the end of 04
--Coming to the realization that the indicators coupled with price were much more objective at determining where resistance and support were than subjective lines (This was big).
--Coming to the realization that option selling, not option buying, was where the money was.
--Long the SP for most of the 90's
--Realizing that the way to win was using extremely low leverage and averaging in
--Long the 93 Soybean Flood Market
--The advent of the Globex etc and electronic trading round the clock
Negatives (and there are very very few really):
--Blowing 40 percent of my account early on before I knew what I was doing(that might actually be a positive)
--letting some bozo talk me into vertical bull call spread as a low risk trade--what a joke
--Paying high commissions initially
--Having to keep my charts manually everyday which took most of the evening.
As to the question about O/B areas on the SP. Yes, it is just looking at longer time frames technicals and knowing that I am generally early when I start getting in.
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