ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Quote from Buy1Sell2:
Scary is a strong word. Set your position size and your stop so that you do not lose more than 2 percent of trading capital or total liquid net worth(take your pick--for me it's TLNW) and there is nothing scary about trading.
Thanks for the advice, new to ES, I've just been doing 1 contract and will continue to until i feel confident in my strategy. problem with 1 contact is when to take the profit. Would you set a target, or set a stop target and let it run?
I like to let trades run and just trail stops. The big win will make up for all the other bad decisions. Many times, I give back a lot of profits so it may not be right for you. Here's the key and it's more important than when to take profits--- Never lose more than 2 percemt of trading capital or TLNW on any trade. --Period.
Would you be willing to comment on what you think the minimum stop is acceptable on the ES? It's obvious that anything less than 1 point will easily get whipsawed but still want to maintain tight stops. If I use 2 or 3 * ATR it seems like the stop becomes too wide. Not looking for a hard and fast rule just a feeling I suppose.
Example-- My initial stop was at 1435 and represented .9 percent of TLNW. We have a bounce going right now, but there is no reason for me to panic. I will not lose more than .9 percent of TLNW no matter what happens. Also I have trailed my stop now to 1431.50, so it is even less. Bottom line-- I am giving back profits right now, but I am not concerned because I am limiting my actual losses. I play for big wins and small losses. It will be argued that I give back too much. On individual trades taken by themselves, that may be true. However, I am in on the bigger winners and the only way you can do that is to live through give backs from time to time. Learn to embrace the bounces and retracements--Learn to enjoy them
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