Oh my, B1S2 is becoming a skilled daytrader!
ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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I wanted to impart something to you that I have come to learn in the past year. You may recall that I switched from an "average in" strategy to a trendfollowing stopout workplan. I used to try and avoid stopouts and that is why I chose the average in method which did work. However, I have come to the following revelation: ---In order to trade MORE effectively, one must not only accept getting stopped out, but must EMBRACE it and genuinely look forward to it. ---- See, you can teach an old dog new tricks. Stops must still be outside of noise of course. 
LOL. Yeah, I figured you missed the part where I scaled out. I think you make a good point about it. However, it's what I've become used to more than anything else.
In this case, we're up against a declining trendline from 1440. Trying to poke through as we speak. Sometimes they break on through, sometimes they turn back down. So in this particular case, it seemed like a good point to lighten up some. I'll regret it later of course if we keep on going up. Or, I'll wonder why I didn't sell everything if we go back down.
I enjoy your posts by the way. Always alot of good trading information contained in them.
OldTrader
I know this is true.
But, why?
P.S. I do it, and take my trades as they come and always end-up ahead at the end of the day, but taking the stop is like taking a needle from the doctor or the dentist ... there's always a "little sting".
Thanks for your nice comments and I enjoy your postings as well.
I would muse that scaling out is not necessary if one employs an agressive trailing stop that enables the entire position to stay on. For example, if a stop out occurred here at 1390.50, then it would be a better result than having half go back to 1383.50.
Quote from MandelbrotSet:
I know this is true.
But, why?
P.S. I do it, and take my trades as they come and always end-up ahead at the end of the day, but taking the stop is like taking a needle from the doctor or the dentist ... there's always a "little sting".
That's how I got over going to the doctor. I'd go in and tell him to make it hurt. Before that, I was scared of needles etc.
Very true. However, the reason I don't use 1390.50 is that I can't see a technical reason to do it. It seems too aggressive to me.
I can see a little natural settling here, especially since we bumped against that trendline, and because the run-up to it was so fast. But there may also be some support now around the 1388-1389 area.
I'm not expecting to get stopped out at 1383.50. I just put it there for now because it takes me out if something happens that I don't expect. In the meantime, I leave enough room for them to digest the gains of this morning if that in fact is what they're going to do.
That said, we watch the leadership over in the NQ, which is threatening to make a new recovery high for this move.
OldTrader
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