ES Journal Archive (2006 - 2008)

Buy1Sell2 · Jan 16, 2008

Quote from dmartin:

Buy1Sell2:

Still didn't answer my question. If your short from 1417 with a stop at 1517 (which is your stated 2% maximum loss) and we reach 1317 is that 2% gain for you a home run?

DMartin

The risk becomes much smaller as I trail the stop down. 100 points would not be a homerun 200 points would be a standup triple.

By the by, I don't believe that I said 1517 represented 2 percent loss.

dmartin · Jan 16, 2008

Quote from Buy1Sell2:

The risk becomes much smaller as I trail the stop down. 100 points would not be a homerun 200 points would be a standup triple.

By the by, I don't believe that I said 1517 represented 2 percent loss.

I was under the impression you "always" stated to never risk more than 2%. Are you saying you risked more than 2%

dmartin · Jan 16, 2008

Buy1Sell2:

By the way--if 200 points is only a stand up triple there were no homeruns made on the S&P in 2007.

Buy1Sell2 · Jan 16, 2008

Quote from dmartin:

Are you saying you risked more than 2%

No

Buy1Sell2 · Jan 16, 2008

Quote from dmartin:

Buy1Sell2:

By the way--if 200 points is only a stand up triple there were no homeruns made on the S&P in 2007.

Correct. I still go for them, so that I allow my trades to run. Very important point here is that I never have a large loss. The stop gets trailed and I get stopped out small.

apex82 · Jan 16, 2008

Quote from apex82:

offering 1901 on the nqh08... lets see if it can get up there

stop will be larger than normal about 8pts but target will be 25 pts+

anyone take this with me...? absolutely beautiful looking to hold this for a month if I can...

candles · Jan 16, 2008

trying a short here 1372 - big stop

dmartin · Jan 16, 2008

Quote from Buy1Sell2:

No

Thank you--you answered my question. In addition, if we go down to 1317 and you make 2% (100 points) that is not very good money at least from my perspective. And really, how many times in a year does one make 100 points on a trade?

smilingsynic · Jan 16, 2008

Quote from Buy1Sell2:

Correct. I still go for them, so that I allow my trades to run. Very important point here is that I never have a large loss. The stop gets trailed and I get stopped out small.

Considering that there are certainly more potentially rewarding markets that DO regularly make homerun moves--crude, corn, gold, to name a few, then why allocate capital to a very different market such as the S&P?

Not all markets are made for the trend-following approach you seem to employ.

Buy1Sell2 · Jan 16, 2008

Quote from dmartin:

Thank you--you answered my question. In addition, if we go down to 1317 and you make 2% (100 points) that is not very good money at least from my perspective. And really, how many times in a year does one make 100 points on a trade?

It doesn't but I trade so that when it does, I am in. In the meantime, I pick up other gains which are larger than the losses that I incur. Last years net gain on the trading account only was 92 percent. This means that my total gain on TLNW was less than that of course.