ES Journal Archive (2009 - 2010)
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JUST DID
Exited my long NQ on 1595.50 and 10 seconds later it pops 2 pts instantly.Oh well, have to head back to my MBA class (which is partly why I exited my trade), but also being long against B1S2's short felt awkward.
I have a history of getting creamed while holding positions against B1S2's law of the trend...
Quote from M3peat:
Thanks for the response. Funny thing is, I started at 4 ticks and then after researching all my losses, I noticed I was usually 5-6 ticks from optimal entry (on those trades anyway), so I switched to 7 ticks and now I get stopped out there. It gets a little frustrating at times. My other demon is getting out too soon when I do make a right trade. I'll take 8 ticks and run and if I had waited on at least half of them, they would have turned into some huge gains (think 10+ points). Overall, I'm taking all my wins and losses as experience and hopefully learning from each of them.
My account is starting to form an IHS, does that mean it's about to burst!! Haha
Those are still tight stops. I used to use 2 and switched to 3 a few years ago. As market conditions and volatility changes you will find you may need to adjust your stop. As far as cutting winners short, you may want to try scaling out 1, some, 1/2 etc at your usual target and letting the rest ride while moving the stop to entry for the part that is left on. This will satisfy your need to bank some profit while letting you still participate if the move continues without risking any of your initial capital. Worst case is you get stopped out at breakeven and still are net positive on the trade. This will help you with finding the balance between fear and greed.
http://www.traderslibrary.com/moreinfo.asp?item=2121&SID=&lc=gurus_homepage
Thanks again and I agree on scaling out but since I'm new at this (sim traded for 7 months and now live for 1 month), I'm only 'swinging' a 1 lot till I'm more comfortable about my trades.
Its hard to moves my stops that wide when my r/r would be 1/1 for the most part. I see your point on everything though. If/when my account is bigger, I'll change my tolerances.
I know everyone knows this already but sim trading and live trading, although trading the same market etc., is way harder with real money. I was a sim trading champion before I went live. I knew the old saying but didn't realize it would affect me that much.
Stop should be a function of volatility, not a fixed one. =P
Current 15-min RTH average range stands at 2.6 pts.
And in case anyone ask about the total risk, you then adjust your size to match the total risk of your risk capital.
p.s. w. upthrust again, against open and R1 - bearish formation.
Current 15-min RTH average range stands at 2.6 pts.
And in case anyone ask about the total risk, you then adjust your size to match the total risk of your risk capital.
p.s. w. upthrust again, against open and R1 - bearish formation.
The all magical 95 is used to defense against any form of sell off again.
Boring!
Boring!
Quote from Lawrence Chan:
Stop should be a function of volatility, not a fixed one. =P
Current 15-min RTH average range stands at 2.6 pts.
And in case anyone ask about the total risk, you then adjust your size to match the total risk of your risk capital.
p.s. w. upthrust again, against open and R1 - bearish formation.
Hi Lawrence,
Has your LT view changed to the downside? You mentioned 990. If that is maintained, would you say that LT to the upside is still intact?
Thanks.
This is not a dumb question by a long shot. The answer is not so simple. Market making firms pay for order flow, that is a retail broker will get paid a fee for your order. Now why would market makers do that? You should look up anonymous matching engines on the cbot website. In the old days, you got 500 locals in a pit looking for a meal. Retail order comes in and everyone wants a piece of it. Ok, now an institutional player comes in and starts buying and buying and buying, now the locals are scared and will cover. This is the yin and yang of the market although the game is played out electronically now. My answer to you is it doesn't really matter if they can see your stops, unless you are trading institutional size lets say 500+ contracts on the emini, you are not going to affect the market. I think someone said you should be more than 1% of the volume in any security (someone else can chime in here), so that if a thinly traded stock trades 100,000 shares a day then you should have no more than 1% or 1,000 shares. The emini traded 1,920,576 contracts yesterday so take it easy if you get up to 19,205.
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