ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Folks, I am basically a turtle type trader with my own ideas about entries and exits. The main difference is that I am in trades much earlier than they were(are) as I don't only buy breakouts like they do. Typically if I am buying a breakout, I am already in with my initial salvo. Secondly, I also know that less trading generally nets more long term profits. The trader that gets flat everyday or uses a profit target for day trading will be presented with more opportunities, but will also fall upon more failure opportunities. In addition, they will not reap the reward of overnight gains. Now , the argument can be made that by not allowing positions to run overnight that you also won't get hurt. However, if you are always trading in the direction of the longer trend, it is very very difficult to get whacked overnight, especially if not overextended. 
Edit: Not saying you can't make money daytrading, just indicating why my preference is longer term.
Edit: Not saying you can't make money daytrading, just indicating why my preference is longer term.
Quote from Buy1Sell2:
Never ever scale out. Oh, it might be good on a particular trade ,but over the long haul, not scaling out will get you more profits.
More profits come from taking bigger positions and I am not just talking of a handful of lots.
And so......
1 ... Start by producing a steady consistent stream of net daily points.
No losing days.
So, the only unknown now is how many trades it takes to reach your target net points each day.
2 ... Now introduce your walkup plan to steadily increase your position size.
Do not give a thought to scaling or not scaling because by now you are fulfilling step 1 with ease.
If your plan says no more wiggle room than 2 or 3 pts, then that is it.
Pay particular attention to the direction of the market to your limit stops. Is the market driving into them with force on the bid/ask or is it backing into them.
You just do what you have disciplined yourself to do in step 1 and each day increase your lot size by a fixed % of your account.
Work in with your Broker to reduce your margin requirements and your comms, they will not want to lose your account by this stage as they can see your plan at work.
It is important to lower your margins as you do not want a dime more in your account than is required to sustain your plan.
Most importantly, give serious thought as to your course of action if the CME closes on an 100+ lot open position.
Yes I know that you have a 3 point stop in there. Just keep thinking about it.
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