ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Action today created a MACD Histogram Bearish Divergence at the close today. However, no reaction lows have been violated longer term and the pattern was not as strong as I like. Does that mean that the market will not go down again Monday or even a lot Monday? No, but it simply means that I will stay on the sidelines for now looking for long entries as I view the longer term trend as still up. 
Quite a number of us recognize Saxon's posts as being a put on. No one who wishes to remain in this business for any length of time puts on even one(1) contract in order to obtain 1 point each day. The proof of the logic is in his statement where he indicates that he attempts to get the 1 point when the market is trending strongly. Think about the logic behind that statement and you will see that the idea is a put on. Fairly well done Saxon.
Quote from Buy1Sell2:
Quite a number of us recognize Saxon's posts as being a put on. No one who wishes to remain in this business for any length of time puts on even one(1) contract in order to obtain 1 point each day. The proof of the logic is in his statement where he indicates that he attempts to get the 1 point when the market is trending strongly. Think about the logic behind that statement and you will see that the idea is a put on. Fairly well done Saxon.
Perhaps so, but there are some who DO aim for only a point or two. There used to be a very active ES journal here (I've been reading ET for years, even before I officially registered a few years ago) called something like the "S/R Journal," based on a strategy endorsed by a group called Traders International (or something like that). The trader was actually somewhat successful with getting a point or two (or sometimes three), but kept pretty close stops. The journal was definitely interesting, but only to observe what someone else was doing.
Each of us is free to choose which strategies and which money management principles are for us, but I will say this: if Saxon is making a good profit with that kind of risk-reward, he must be something else with his entries, because I don't know how he does it. If it works, then good for him, but for most, it would probably not work.
Couple of comments
I agree with B1S2...no one with an understanding of trading would seriously try to obtain one (1) point at a time as a retail trader.
First, it would be impossible to obtain a sufficient risk/reward ratio, especially trading indexes which are quite noisy.
Second, it is unlikely that a one point gain would be sufficient to overcome expenses.
Steve
I agree with B1S2...no one with an understanding of trading would seriously try to obtain one (1) point at a time as a retail trader.
First, it would be impossible to obtain a sufficient risk/reward ratio, especially trading indexes which are quite noisy.
Second, it is unlikely that a one point gain would be sufficient to overcome expenses.
Steve
Your post regarding the S/R Journal is incorrect. The journal was started by 4re and his trading technique was to Buy/Sell breakouts based on the strongest support/resistance levels of the previous days/weeks or even month's worth of price action.
4re took the Traders International course (which is based primarily on divergence trades) but did not use the technique to trade with on his thread.
Saxon has quoted that he scales-in with a 5pt stop multiple tiers of lots to achieve a 1pt, maybe 2pt aggregate profit.
This is very tempting technique to employ, and can generate successful trades probably 8 or 9 times out of 10, but when he loses (and he will), it's going to be a whopper!
Good trading,
Jimmy Jam
P.S. I don't actually have any problems with Saxon's (or anyone else's for that matter) trading. If that's how it wants to do it, fine by me, but I personally would take the exact opposite tact.
Quote from Buy1Sell2:
Quite a number of us recognize Saxon's posts as being a put on. No one who wishes to remain in this business for any length of time puts on even one(1) contract in order to obtain 1 point each day. The proof of the logic is in his statement where he indicates that he attempts to get the 1 point when the market is trending strongly. Think about the logic behind that statement and you will see that the idea is a put on. Fairly well done Saxon.
Since I place my orders counter trend (as stated in my previous posts), going for more than 1 point profit on a counter trend is impossible, especially when the trend is very strong (like today for example). Once I determine that we are reaching a top or a bottom I scale in going counter trend. I purchase 1 contract at point x and then add another contract at point x + 1, x +2 ect. Once the trend reverses and I get my profit of 1 point per contract, I generally get out, unless there is potential for the trade to go further. I place my limits, lock in my 1 pt. profit and hope it will go higher.
This is not a "put on". I have called live trades on this board several times in the past and I will continue doing it in the future, so we will see who makes $$$$ at the end of the day.
Again, my profit target is 1 point per contract, not 1 point per trade. When I am in for 5 contracts the trade must be in green for 5 points in order for me to hit the sell button.
I also have no problem with anybody on the ES J. thread.Quiet the contrary, I think you guys are extraordinarily bright and talented traders. This is why I am posting here. I have absolutely no "beef" with any of you and I am glad that you guys devote some of your time to analyze my style. So, keep 'em coming. I have a thick skin and I much rather not win an argument than be in the hole $$$$wise.
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