ES Journal Archive (2009 - 2010)

[Lawrence Chan]

No more gap up I guess.

 

[MandelbrotSet]

HOW NOT TO TRADE!
(aka don’t try this one at home kids)

Step 1: Enter a trade against the trend.

Short 62.50

Stop 66

Step 2: Double down on your trade as it moves against you.

Doubling down 62.75

Same stop

Step 3: Hold the trade for an enormously long time ... just to get a few points of profit (iow, turn a daytrade into a swingtrade, holding into the next trading session, hoping the trade will come back into profit).

Step 4: Move your stop.

Man you just had to bring up my stop, didntcha?

I'm raising my stop to 1066.75 now that you have it all plastered over your chart.

Step 5: (not necessary, but some do it anyway) Move your stop again.

See, What did I tell ya? You opened the can of worms.

Man, am I glad I raised the damn stop. Was that close or what? I barely escaped by a single tick! :eek:

Alright, I'm raising the stop yet again to 68.25. No more!

Step 6: Watch impotently as the market moves against your position and takes out your trade at a loss, for four times your initial risk levels.

(see chart)

Note: My issues are with the trading style, not the trader. Notice I deleted all names to protect the innocent.

 

[Kovacs]

That was a kick in the balls.

 

[MandelbrotSet]

Nah, it was a lesson from the School of Hard.

• If you learn the lessons that the market has to teach you, it will give you immeasureable rewards.
• If you ignore the lessons that the market has to teach you, it will throw you into the dung heap, along with all of the other failed traders.

Good trading

 

[Pekelo]

Quote from Lawrence Chan:

1. should the mkt gap up by open, it is 2nd gap up day where the gap we have yesterday was not filled.

Where did you learn that and are you some kind of charity guru, giving away valuable info for free?

Played out beautifully....

 

[xty]

Quote from saliva:

Broke out from what?

By 2 points, I meant a rangebound move between 66 and 64 (eg. 66 - 2). Yes, it did break above 66 by 2 ticks. We'll call that an unintended head fake.

(Still, they failed to hit my stop at 66.75, which now sits at 68.25.)

I hope u managed to get ur stops out of their way................?

 

[fishing]

Quote from saliva:

See, What did I tell ya? You opened the can of worms.

Man, am I glad I raised the damn stop. Was that close or what? I barely escaped by a single tick! :eek:

Alright, I'm raising the stop yet again to 68.25. No more!

ouch :eek:

 

[JSSPMK]

Quote from JSSPMK:

Prices may rise into reports

2 major reports, a lot of stops triggered.

 

[pcvix]

An inside day in the making?

 

[Pholeuon]

I personally think that put stop out of trading hours between R1 and S1 for next day is no win situation - mostly it will be triggered. Enough safe is just stop out of S2-R2. Forget for trade if you need give stop between S1-R1.