ES Journal Archive (2006 - 2008)

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Quote from Buy1Sell2:


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Everyone should define what longer term means to them. High leverage uses 2 minute and 10 minute charts, so 60 and 240 become the long term, not daily and weekly. :)
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As usual, I disagree with B1S2, at least semantically.
Use of time frame has NOTHING TO DO WITH USE OF LEVERAGE.

Osorico :)
 
If I may...

Quote from osorico:
Use of time frame has NOTHING TO DO WITH USE OF LEVERAGE.
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That is incorrect. Since it is hard if not impossible to daytrade using a 240 mins chart, we can assume that the person using it is position/swing trading, holding the position for days rather than for minutes. Thus he needs more margin because overnight margins are higher and that DOES effect the aviable/possible leverage.

So as you can see it, it is safe to say that most likely users of smaller timeframes also use higher leverage, than users of bigger timeframes... :)
 
Quote from Pekelo:

If I may...



That is incorrect. Since it is hard if not impossible to daytrade using a 240 mins chart, we can assume that the person using it is position/swing trading, holding the position for days rather than for minutes. Thus he needs more margin because overnight margins are higher and that DOES effect the aviable/possible leverage.

So as you can see it, it is safe to say that most likely users of smaller timeframes also use higher leverage, than users of bigger timeframes... :)
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Seconded, I can't daytrade 240 due to the above, too wide stops are required.
 
Quote from Pekelo:

If I may...



That is incorrect. Since it is hard if not impossible to daytrade using a 240 mins chart, we can assume that the person using it is position/swing trading, holding the position for days rather than for minutes. Thus he needs more margin because overnight margins are higher and that DOES effect the aviable/possible leverage.

So as you can see it, it is safe to say that most likely users of smaller timeframes also use higher leverage, than users of bigger timeframes... :)
More...

You have now interjected trading style into the discussion. The fact remains, usage of a time frame DOES NOT HAVE ANYTHING TO DO WITH LEVERAGE. I wonder if there has ever been a trader who entered a trade off of say a 5m tf with intent of a daytrade, and decided, for whatever reason, to expand the trade into a short-term swing? What about the inverse, a trade entered off the 240m, and for whatever reason, exited based on the 15m the same day? LEVERAGE HAS NOTHING TO DO WITH THE TIME FRAME USED. ES has a 12.50 tic regardless of account size, position size, or an individual traders trade style, risk tolerance, or trade expectancy.

IMO, the question is "should I", NOT "Could I". Use of leverage in this discussion implies a "Could I" approach. Professional or otherwise business-minded traders use the "should I" approch. It's not about leverage at all. jmho

Osorico
 
I expect to see a bull-reversal at mid-day tomorrow, unless it's seen overnight. I'd expect ES to work its way to 1470 this week on reduced volatility. Risk to 1425 on futures. JMHO.
 
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