ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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This frame and the next will show the first charts that I look at everyday. I always look from the larger frame downward and I never trade against the larger frames. If someone is daytrading the 5 minute chart, they would consider the 30 and the 240 as their larger frame charts. If one is trading the daily as I do for position trading, one considers the weekly and the monthly for their basis. What this means is that if you miss a setup on the long frames that I trade, you must be patient for the next set up and try not to force the trade by shorting the bottom or buying the top. It is rather unlikely that a setup will be missed though when you trade long frames like myself because you have quite a bit of time in order to consider all the variables and risk. I believe I have now accomplished what I set out to do in this journal which was to demonstrate the negative aspects of daytrading. ie stops too close, stops too far away, chasing the market, indecision etc etc etc. I will continue to post, but the knowledge one will have gained here by watching me demonstrating failure should be very helpful. Good trading all--
Compare this monthly chart with today's posting of the monthly. I have been told that my tools are antiquated (RSI, BB, MACD). But it turns out that it isn't so--
http://www.elitetrader.com/vb/showthread.php?s=&postid=2074984&highlight=monthly#post2074984
http://www.elitetrader.com/vb/showthread.php?s=&postid=2074984&highlight=monthly#post2074984
when you say you're out of equities, do you mean that you are short as opposed to flat? you are dollar cost averaging by shorting every time there's a rally?
Quote from Buy1Sell2:
We have made it to 800 like I had thought we would. Long term downtrend looking good here. Long signals are only bounces in a very long term downtrend. I would imagine 200 is not out of the question on the SP and 1600 on the Dow within the next year or two. Fortunately, I have been out of equities for a year now and am just dollar cost averaging back in at small rates. Once, I see the Super Long Term Trend reverse to the upside, I will once again be long full force in my portfolio. That could be years away. Hopefully, everyone has seen why successful traders only trade with the trend and not against it and why it is important to avoid the trades which are countertrend.
according to this chart, why didn't you think the market was going to turn around at around april?
Quote from Buy1Sell2:
This frame and the next will show the first charts that I look at everyday. I always look from the larger frame downward and I never trade against the larger frames. If someone is daytrading the 5 minute chart, they would consider the 30 and the 240 as their larger frame charts. If one is trading the daily as I do for position trading, one considers the weekly and the monthly for their basis. What this means is that if you miss a setup on the long frames that I trade, you must be patient for the next set up and try not to force the trade by shorting the bottom or buying the top. It is rather unlikely that a setup will be missed though when you trade long frames like myself because you have quite a bit of time in order to consider all the variables and risk. I believe I have now accomplished what I set out to do in this journal which was to demonstrate the negative aspects of daytrading. ie stops too close, stops too far away, chasing the market, indecision etc etc etc. I will continue to post, but the knowledge one will have gained here by watching me demonstrating failure should be very helpful. Good trading all--
2 areas am looking at right now.
If intervention happens on usd/jpy, a strong break below of 780 and snap back above, a strong rally is in play.
If no intervention, I wanted to see limit down before buying.
p.s. I repeated that many times here - no limit down, no bottom.
If intervention happens on usd/jpy, a strong break below of 780 and snap back above, a strong rally is in play.
If no intervention, I wanted to see limit down before buying.
p.s. I repeated that many times here - no limit down, no bottom.
If one were to take a position trade short here where the market is already oversold, that person would need to realize that a lot of pain could be inflicted prior to them receiving a financial gain. When you sell on an oversold basis like this, the correct stop is necessarily going to be well away from the market. In this case, the correct stop out would be 1075, a full 280 points away from entry! I'll put one contract on short here at 795 with a stop of 1075 in order to demonstrate.
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