ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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yeah, no worries, been down 500K intraday before.
family is heavily long been buying last few weeks, net shares.
FWIW, this works well sometime, but sometimes you can get chopped on a fake break and end up with 2 losses. Since ES spends a lot of time chopping and retracing you have to be careful.
Mbusch, I noticed you have a lot of trades go in your favor, but then they get stopped out. Have you ever considered taking half off the table at that way the winners don't turn into a loser ?
Quote from Buy1Sell2:
Hourly trend continues to be downward. The 5 minute provided a bounce late in the day with a Bullish divergence. I only take divergences in the direction of the current trend. Therefore I did not trade the 5 minute bullish divergence that would have netted about 7 points. I prefer to identify the trend as I see it and then trade only that direction. This has me missing trades, but it also has me in larger winners, so one can feel more comfortable in their position size. Example: Hourly trend was long at 2 PM EST last Thurs. Then long grails appeared on the shorter term charts overnight, most specifically in the 45 minutes before the Fed announced the rate cut Fri morning. Thus, long was the order of the day and there was a large benefit.--- It is possible to trade against the trend with close stops and profit targets, but trading with the trend allows a trade to really run, either with a larger profit target or just letting it run. Each trader must learn to identify trend for themselves.
There are numerous other examples in the past several weeks that would have you on the winning side during the big runs, just by being in a trade that is with trend instead of against it. Just look at the afternoons of 8/01 and 8/08 and 8/10. By trading with the predominant trend, it would have been nearly impossible to lose money. --Yes, there were intraday trend changes.
Stops are being placed much too close to the trades in my view. If you are with the trend, the stop can be much farther away. In fact, although I advocate hard stops, I really am just championing them for the newer traders. I use stops but they are mental stops. When I am with the trend and taking signals correctly, it is very hard for the trade to move against me. I evaluate my signals and if it still makes sense to be in the trade, I stay in. My indicators and signals warn of the time that I need to be out and anyway, I am not in danger of blowing the account out because of a quick market move. Not because of a lot of capital, but because of proper management of that capital. Of course, most traders need to use hard stops.
I would never place a stop of 2 points even mentally. I'm more comfortable with 6 to 10 points, but then you need to realize that I only take the best signals and I am very very patient.
Good trading to all.
There's gold in them there sentences. The thrill of catching the mega move. Hands down, this is the best advice on ET.
those prob factors, shouldn't shift, the more they shift, the less likely the outcome.
ano 100 at 68
ano 100 at 68
if dow pushes up to 350/400 level.....i`ll be looking for a powerfull reaction.
the dow loves to paint the pic on their charts so i would`nt be surprised to see it set up.
this setup mirrors the 1510 ultimate sell on ES....that gave a quick 14 handle move & was the beginings of the 10% downside move.this setup usully provides a quick/sharp reaction.
i`ll be in mexico next week to recharge my batteries,which are fried.....so good trading next week to all.
the dow loves to paint the pic on their charts so i would`nt be surprised to see it set up.
this setup mirrors the 1510 ultimate sell on ES....that gave a quick 14 handle move & was the beginings of the 10% downside move.this setup usully provides a quick/sharp reaction.
i`ll be in mexico next week to recharge my batteries,which are fried.....so good trading next week to all.
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