ES Journal Archive (2006 - 2008)

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Quote from Buy1Sell2:

Clearly bullish divergence here, but in an overall downtrend.
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I think the downtrend is ending today. We went lower then my expected 1345ish (first bottom was 1330 cash a few days ago, I didn't expect to go down to the same level and today we stopped at 1335) but now we have a beautiful double bottom with RSI divergence on the daily chart. Trend should be up from here...
 
ok, lets see if we are on the same page here. imo money management is about getting out of losers fast and letting winners run. Risk management is about the size etc of the trades taken. Risk management is about NOT overtrading either with size or amount of non-quality trades.
 
Quote from bighog:

risk management and money management are two different items.

i love options...........that example you gave is bogus because it is the worst case you can come up with. no trader would do that worth his/her salt. Breakout trading is indeed about jabbing the mkt over and over trying to nail the knockout .

breakout trading is where the old saying came from about keeping the losses small and let winners run. Thats what we all strive for, thats a winning combo.
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Read first who came up with this worst case scenario before telling people they're bogus.
 
Quote from smilingsynic:

How are you defining "money management"? You seem to be defining it as trend following (cut losses short, let profits run).

If the system has no edge, there will be few big profits to take, but there will be many small losses. After all, one cannot get water from a dry well.

In a trend following system that happens to be applied to a trending market, the system is responsible for the profits.

Poor money management (risking too much per trade) can bankrupt a trader who happens to have a winning system. But if a trader has a losing system, or is trading in a discretionary way according to unwarranted assumptions, no system of money management can turn that trader into a winner.

This principle is the reason why casinos win (as long as they limit max bets). The casinos have the edge, so they ultimately prevail. Gamblers might have their martingales and reverse martingales, and although individual gamblers might win on occasion, gamblers overall are losers, regardless of their money management systems.
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Actually, money management can turn a losing system into a winning system without question. The casino example is a bit flawed because typically there is not the same ability to move your stop up and let a winner run. In the casino, you definitely need to have more winners than losers. That being said, there are games where you can have relatively small losses and big wins without a high winning percentage. Slots and Keno come to mind.
 
Quote from bighog:

ok, lets see if we are on the same page here. imo money management is about getting out of losers fast and letting winners run. Risk management is about the size etc of the trades taken. Risk management is about NOT overtrading either with size or amount of non-quality trades.
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It's all the same thing. When you are deciding on position size, you are really just managing the money you want to lose.

Here is how I view money management:
When I make a trade, I immediately count that money as gone. Then everytime I move the stop closer to the trade, I look at that as money that I am earning.
 
Long waiting 2 contracts at 1344.75 (Sept).
Stop 1337.50
Targets 1355, 1359.
Not great rr but I like the support we have here.
Edit: Filled
 
Technicals today are garbage. Must be options day.

<a href="http://www.sweetim.com/s.asp?im=gen&ref=11" target="_blank"><img src="http://content.sweetim.com/sim/cpie/emoticons/00020185.gif" border=0 ></a>
 
Quote from Pekelo:

I think the downtrend is ending today. We went lower then my expected 1345ish (first bottom was 1330 cash a few days ago, I didn't expect to go down to the same level and today we stopped at 1335) but now we have a beautiful double bottom with RSI divergence on the daily chart. Trend should be up from here...
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It's possible, but it doesn't appear to me to have based out enough yet.
 
Quote from fearless9:

time for a break

Right now the price is jammed between the rth midpoint (support) and the rth open (resistance)

regards
f9
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Never ceases to amaze me how levels work so efficiently.

regards
f9
 
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