ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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It was a nice trade and nice call...did you buy early this am when it hit?
Chop is probably the toughest trade...today the bears will be right and the bulls will be right...being on the RIGHT side of the trade is the toughest!
Quote from Buy1Sell2:
staying short here. Stop is currently 1517.00
Earlier:
Quote from Buy1Sell2:
1417.50 I was stopped in.
OK, so just to clarify, you rode the position down to 1385, +32 points in the money, then you let it ran against you by 51 points topping at 1436 yesterday.
That is -18 points from entry. So I assume the position must be small, so an -18 points adverse move against the entry is still inside the 2% accepted risk???
B1S2
Your homework is
"opportunity cost"
Your homework is
"opportunity cost"
Quote from Buy1Sell2:
yes. position size is much more important than a stop order. In fact , it is the most important aspect of trading.
I disagree, why not trade more size with smaller stops. Your winning percent will increase as well as your account because you are not trying for a low % chance homerun on every trade. Makes no sense to trade 2 contracts with a 18 point stop when you could make 3 separate trades with 6 contracts with smaller stops and smaller profit targets that have a higher % chance of getting it. Plus if you are right on anyone of the 3, you can heaven forbid, SCALE OUT partially and keep perhaps 2 contracts, THE EXACT SAME AMOUNT YOU WOULD HAVE ON THE HOMERUN TRADE on to try for the homerun trade on it. If you are wrong on all 3 and are just a terrible trader then your $ lost is the same risk amount as that huge stop on the small position. Best of both worlds.
Thank you IHS
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