You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
- Start date
- Status
- Not open for further replies.
S 1167.25
Target and Stop 2 Points.
Target and Stop 2 Points.
Quote from emg:
My definition of a small account es day trader is less than $200K risk capital in the account. Fund managers (big accounts) have a minimual $800K in their risk capital accounts, however, i say the average is $5- 500 million in the accounts. The gov reports that 97% of the people lose trading in the futures market and i believe the reason is the small account traders are going against the fund managers or shall i say this, the las vegas tourist gamblers are challenging the casinos (the house) and in the end, the casinos (the house) always win. Or shall i say, in the end, the fund managers always win.
Therefore, if placing a stop, the fund managers will make sure u get stop out by using their million dollar leverage.
Another fascinating post.
But it does not flow on from your last post.
It reads more like a stand-alone statement hopefully attesting your intelligence.
viva la diferencia
Quote from dalen:
That has to be the scariest plan I have ever read...
You forgot the 3rd and most important scenario, if those fund managers don't exit and push higher.
First off if you added at 76.75 you would be averaged in at 74.25, not 74.75. And you say that 1173.75 is a 1 point target, but price isn't at 74.75, its currently at 76.75. (where you last added). So now you are down 2.5 points per car. Already 2.5 times your reward. So when price keeps climbing higher do you add again? At say 81.75? So now you're averaged in at 76.75, Target 75.75? Given you are trading 1 lot from the start, currently you would down 5 points PER contract, total 15 points in the red when your original trade was to make only 1 point on 1 lot?
I wish you luck man..
'Averaging down is like shitting the bed and pushing it out with your feet, you only make a bigger mess.'
Risk reward ratio in trading is not absolute there is a variable you are not mentioning that is accuracy, with this you complete expectancy which is most definitely absolute and the only thing that matters.
There's usually two type of trading styles.
- A positive risk reward ratio, with low or adequate accuracy
or
- A negative or par risk reward ratio, with high accuracy
Both can be profitable with the right edge.
As far as I know, a fairly high risk reward ratio with high accuracy is very hard to achieve and otherwise known as a holy grail.
Need to have an open mind in trading, particularly when analyzing other traders. There is no one way, there are many ways.
Thanks for reading.
Quote from No.Heat:
As far as I know, a fairly high risk reward ratio with high accuracy is very hard to achieve ................................
Need to have an open mind in trading,
Try putting these two independent statements together.
I never said it is easy, but you might grow very fond of the outcome.
- Status
- Not open for further replies.