ES Journal Archive (2006 - 2008)

[Buy1Sell2]

Quote from volente_00:

I have no problem paying more commissions in return for the opportunity of having more profitable opportunities with less market risk than a swing trader.

This is the common fallacy of the day trader. The small stop outs actually add up to more than the larger one time stop outs that I take. It would be the very very rare trader that would be able to beat the swing/position trader. If you are that 1 in 40 or 50, then that's fine.

 

[volente_00]

Quote from VoodooMMI:

From the original turtle trading rules: "The most important aspects of successful trading are confidence, consistency, and discipline. Rules that you can't or won't follow will not do you any good."

If you posted your edge on ET most readers wouldn't have the confidence to follow your trading system.

 

[volente_00]

Quote from Buy1Sell2:

This is the common fallacy of the day trader. The small stop outs actually add up to more than the larger one time stop outs that I take. It would be the very very rare trader that would be able to beat the swing/position trader. If you are that 1 in 40 or 50, then that's fine.

I disagree. I have 33 chances to capture 10 plus points on any given trade risking the same 100 points that you use on 1 trade. It is possible to make what you make on one of your swing trades in a day. It is even more realistic for a good es day trader to match one your swing trades totals in a week. Now compound that by 51 more and what are your results ? Now multiply that by the fact that a day trader has the ability to use 130 - 1 leverage while doing the above. Can everyone do this ? Probably not. But not everyone can swing trade using 100 point stops either.

 

[Buy1Sell2]

Quote from volente_00:

I disagree. I have 33 chances to capture 10 plus points on any given trade risking the same 100 points that you use on 1 trade. It is possible to make what you make on one of your swing trades in a day. It is even more realistic for a good es day trader to match one your swing trades totals in a week. Now compound that by 51 more and what are your results ? Now multiply that by the fact that a day trader has the ability to use 130 - 1 leverage while doing the above. Can everyone do this ? Probably not. But not everyone can swing trade using 100 point stops either.

This is the common fallacy of the day trader unfortunately.

 

[volente_00]

Quote from Buy1Sell2:

This is the common fallacy of the day trader unfortunately.

how can something be a fallacy when everything it consists of is factual and can be proven ?


The math does not lie.

 

[Buy1Sell2]

Quote from volente_00:

how can something be a fallacy when everything it consists of is factual and can be proven ?

The issue is that it can only be proven for 1 of every 40 to 50 daytraders. For the rest, it's just a pipe dream. The vast majority will be stopped out continuously with nothing but losses, commissions and slippage. It's best to bypass rule of 10 and T day theory. They are not significant enough to warrant attention by the serious trader.

 

[volente_00]

Quote from Buy1Sell2:

The issue is that it can only be proven for 1 of every 40 to 50 daytraders. For the rest, it's just a pipe dream. The vast majority will be stopped out continuously with nothing but losses, commissions and slippage. It's best to bypass rule of 10 and T day theory. They are not significant enough to warrant attention by the serious trader.

LOL, can you show us where you get your statistics from ? So you advocate using a 100 point stop by a rookie and let them have months of sleepless nights and put them open to the chance of losing it all plus more on a limit move ?




what is 83.25 - 73.50 ?

 

[volente_00]

"The impossible can become possible with an open mind and a belief in one's self"

 

[Buy1Sell2]

Quote from volente_00:

LOL, can you show us where you get your statistics from ? So you advocate using a 100 point stop by a rookie and let them have months of sleepless nights and put them open to the chance of losing it all plus more on a limit move ?




what is 83.25 - 73.50 ?

If the 100 pt stop represents less than 2 percent of TLNW, then most certainly!

This is my last post on this topic. Feel free to discuss if you wish.
Bottom line: rule of 10 and T day theory are insignificant by themselves and can be discarded. There are other means that have better reliability in getting significant gains which is all that I am interested in.

 

[TouchdownNY]

If you both have a technique that works for you, why argue about it?