ES Journal Archive (2006 - 2008)
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LOL What's stopping you asking Qs here and applying them in your papertrading/simulator account?A swimmer has to swim 1 mile in streaming water, which direction will he swim? With the flow or against the flow?
If he swims with the flow he will cover the distance fast, with little efforts, with almost no risk that he will be forced in the opposite direction, and even if he doesnât swim but just keeps floating, he will automatically cover the distance carried by the streaming water.
If he swims against the flow he will maybe cover the distance, but it will take a long time, lots of efforts, lots of risk and he might be forced in the opposite direction by the power of the streaming water. He might even get so tired that he will drawn.
The same rules apply to trading, but many traders break these rules. These traders will be in the long run the losers.
If he swims with the flow he will cover the distance fast, with little efforts, with almost no risk that he will be forced in the opposite direction, and even if he doesnât swim but just keeps floating, he will automatically cover the distance carried by the streaming water.
If he swims against the flow he will maybe cover the distance, but it will take a long time, lots of efforts, lots of risk and he might be forced in the opposite direction by the power of the streaming water. He might even get so tired that he will drawn.
The same rules apply to trading, but many traders break these rules. These traders will be in the long run the losers.
Although this subject has been discussed a gazzillion times before, I'll offer my opinion.
The commeraderie is cool, but if you use it to get into or out of trades, or even for bias or confirmations, your natural thinking process is being modified whether you like it or not. Which in the long and short run, will mess you up. You have to have extreme discipline to trade as it is without other influences taking bits and pieces out of your own processes.
Sorry for the mumbo jumbo.
Are you sure ES/YM was down pre market because of bonds? I was following Dax, and since it dropped 100 points and ES was following it almost exactly, I was sure that it was europe that dragged american markets down. But everybody seames to have a different answer to what happened so I don´t know what to believe
Thanks for all the good comments. Keep them coming! One thing to keep in mind here is that these trades are very tiny right now in relation to my overall portfolio. They are "probe" trades where I eventually find the winning trade. It is not a Martingale where you double each time, rather I relate it to my overall P/L in the portfolio. I do raise the bet on the probes with small losses and then generally get a big win.
Missed the stop by .5 I would say in all honesty, I rather enjoy when the position goes against me because I start out so small. This gives me the opportunity to increase the bet after small losses. My strategy would be bad if I was using a lot of leverage. Long ago, I decided that I could trade this way, by not going all in on the first one. That's where I would get into trouble. My leverage is extremely low and this gives me the opportunity to have a bit more of a position when it does go my way. One other thing to bear in mind, the short term trading is an experiment for me right now. I have been a long term position trader for 25 years.
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