ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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I think ES is a little more forgiving than CL. I went long at 1068, and the market only moved .25 in my favor before falling 2 points, so I added at 1066 and got out at 1068 with a profit. Right now CL is falling, and if I had instead averaged down on CL I would have taken a big loss instead of a profit.
Let's just say I had a plan. and it was not to keep scaling down by 2 points. I determined that ES had in fact made a bottom for the day, so I went long on a high probability trade going for 2 points target. Now since I felt I was trading with the market, I decided before hand that in case for some reason the market decided to f with me, I would go long one more time 2 points lower but above my stop instead of taking the standard 2 point stop on the 1st trade and then set my target to 1168, and the market actually did go higher than my target.
Now this is not good risk vs reward, and may not be the best way to trade, but I could have either practiced good risk vs reward, or made money. I chose to make money.
Now this is not good risk vs reward, and may not be the best way to trade, but I could have either practiced good risk vs reward, or made money. I chose to make money.
averaging down 1-2pts are a big no no result to lopsided risk/reward. the point of averaging down is the chase the market because the new resistence/support formed. when averaging down must be far away from the average price because u want to lower your average price to 2-3pts instead 2 ticks. if u average price lower to 2 ticks, u just increase your risk by increasing your leverage and the odds are hitiing your profit target is slim.
Obviously averaging down 2 ticks is useless and mostly noise, I averaged down 2 points with my plan for that trade, each trade is different. Normally, averaging down to average down is poor risk vs reward, and I try not to do that especially if I am going against the trend.
However, I do think that ES is somewhat like poker, I went long and felt I had a good hand. The other traders raised me on the turn and suggested that their cards were better, but they could be bluffing, so I decided to protect my bet, and called the raise. On the river we both checked, and I ended up having the best hand.
However, I do think that ES is somewhat like poker, I went long and felt I had a good hand. The other traders raised me on the turn and suggested that their cards were better, but they could be bluffing, so I decided to protect my bet, and called the raise. On the river we both checked, and I ended up having the best hand.
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