ES Journal Archive (2009 - 2010)

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long since my target was hit at 876

first target 895.75

second 902.75

third 906.50


im willing to risk the 7 points I was up because of the reward. The first target is 20 points, risking 2 to make 20

10 to1....sounds nice to me right?
 
Quote from Lawrence Chan:

I am not going to quote anyone in this post, just a summary of thoughts from so many posts lately.

1. Position trading or not with low leverage does not make that superior to day trading.

Size move markets. The biggest size right now, is daytrading volume. The daily volume is 2x that in the open interest by end of last year.

Thus proper exploit of intraday price actions will surely produce more money than position trading now. If the daily volume shrinks, then the controlling parties may change in the future.

Since May, the daily volume has started to shrink.

2. Riding a trade does not imply superior performance to scalping style.

If you can consistently make 1 pts (all in all out) net everyday without much risk involved, then it could be better than riding a move of 5+ pts where you have to take more risk.

It is all about the expectancy and risk control relative to the account size.

To make that even shorter - consistency rules!
More...


so what is your stop versus mine? I use 2-3 pt stops MAX, and my reward is usually 8-15 pts. means I could lose 3-5 times and get one winner, just one, and still be positive. Whats your stop and risk to reward to gain one point?
 
Quote from Lawrence Chan:

I am not going to quote anyone in this post, just a summary of thoughts from so many posts lately.

1. Position trading or not with low leverage does not make that superior to day trading.

Size move markets. The biggest size right now, is daytrading volume. The daily volume is 2x that in the open interest by end of last year.

Thus proper exploit of intraday price actions will surely produce more money than position trading now. If the daily volume shrinks, then the controlling parties may change in the future.

Since May, the daily volume has started to shrink.

2. Riding a trade does not imply superior performance to scalping style.

If you can consistently make 1 pts (all in all out) net everyday without much risk involved, then it could be better than riding a move of 5+ pts where you have to take more risk.

It is all about the expectancy and risk control relative to the account size.

To make that even shorter - consistency rules!
More...

Bravo...well stated!
 
Quote from MandelbrotSet:

Long @ 881.00
Initial Stop @ 877.00
Initial Target @ 885.00
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Trade stopped out @ 877.00

I had the initial 2pts of profit, but with the Dow up so strongly this morning, I was looking for a little bit more follow-through, but it didn't happen.

Good trading
 
Quote from david666:

so what is your stop versus mine? I use 2-3 pt stops MAX, and my reward is usually 8-15 pts. means I could lose 3-5 times and get one winner, just one, and still be positive. Whats your stop and risk to reward to gain one point?
More...

It is about consistency.

In your case 2.5 pt stop x 4 times stop out = 10 pts. With one winner at 12 pts. The average per contract is 2 pt / 5 trades = 0.4 pt per trade.

So you need only 20% winners to be profitable.

For those who likes scalping, they would then need a higher hit rate to achieve the same.

Assuming 10 trades a day, then,

0.4 pt x 10 trades = 4 pt net profit.

If it is 1:1 risk for the scalper, then winning trades take 1 pt, losing trades cost 1 pt.

So, we solve for N, the # of winning trades needed,

N x +1 + (10 - N) x -1 = 4
N = 7

Thus the scalper needs 70% winners to make the same amount of money as you do.

Since trading style is greatly affected by the person involved, some will do better with your style, and some will do better as a scalper.

So, you see, a scalper who can net 1 pt per trade can strike it big time. =)
 
I'm a believer that a trader can use a scalper's stop to catch a swinger's profit. It might take multiple stop out sometimes, but if the entry is timed to perfection, this is do-able.

Lure's style seems more or less in this camp.

Quote from Lawrence Chan:

It is about consistency.

In your case 2.5 pt stop x 4 times stop out = 10 pts. With one winner at 12 pts. The average per contract is 2 pt / 5 trades = 0.4 pt per trade.

So you need only 20% winners to be profitable.

For those who likes scalping, they would then need a higher hit rate to achieve the same.

Assuming 10 trades a day, then,

0.4 pt x 10 trades = 4 pt net profit.

If it is 1:1 risk for the scalper, then winning trades take 1 pt, losing trades cost 1 pt.

So, we solve for N, the # of winning trades needed,

N x +1 + (10 - N) x -1 = 4
N = 7

Thus the scalper needs 70% winners to make the same amount of money as you do.

Since trading style is greatly affected by the person involved, some will do better with your style, and some will do better as a scalper.

So, you see, a scalper who can net 1 pt per trade can strike it big time. =)
More...
 
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