ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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Rashid introduced me to the concept of "survivable stops" quite some time ago and I thank him very much for that. It helped me hone my trade entries so that my stops were less likely to be hit, and it helped keep me from chasing trades when I missed the initial entry signal. I say it "helped" me, but didn't cure me; I still managed to chase a CL short today @ 76.95 after it had already dropped 1.58 from NYMEX open; "It's going straight to 76.00 without me!", I thought irrationally, whacking the bid. Fortunately, I escaped with my life. It was quite amazing how nicely a "proper" entry signal worked shortly after that
So, you have to place a survivable stop, and if a survivable stop is more than you're comfortable with, then you avoid the trade at that point. If you shorted ES @ 1075 around 2:03pm eastern time, for example, a minimum survivable stop was 1079.25. If you shorted @ 1075 earlier in the day, then you missed the early short signal and the confirmed breakout entry and you were chasing an entry and doomed to either scratch the trade or take a loss if you use a fixed stop loss on all trades.
5 min
No wonder I don't remember that... everything I teach I forget. I actually "give" the thoughts away...
Seriously, lately I have a horizontal channel that represents my account risk stop and simply drag it around as needed.. Once there is a reversal, place it immediately and price must venture back into the channel or no trade..
In the heat of the battle though....
Quote from Rashid_G.:
Sorry my account can't handle that!!
I don't mean Daily chart's trading range, if you are daytrading, then set stops at least outside intraday range IMO ie selling R2 @ 1150 intraday Hi @ 1152 set stop at least above 1152. Otherwise stop falls within noise which increases chances of it being hit.
Quote from NoDoji:
Rashid introduced me to the concept of "survivable stops" quite some time ago and I thank him very much for that. It helped me hone my trade entries so that my stops were less likely to be hit, and it helped keep me from chasing trades when I missed the initial entry signal. I say it "helped" me, but didn't cure me; I still managed to chase a CL short today @ 76.95 after it had already dropped 1.58 from NYMEX open; "It's going straight to 76.00 without me!", I thought irrationally, whacking the bid. Fortunately, I escaped with my life. It was quite amazing how nicely a "proper" entry signal worked shortly after that
So, you have to place a survivable stop, and if a survivable stop is more than you're comfortable with, then you avoid the trade at that point. If you shorted ES @ 1075 around 2:03pm eastern time, for example, a minimum survivable stop was 1079.25. If you shorted @ 1075 earlier in the day, then you missed the early short signal and the confirmed breakout entry and you were chasing an entry and doomed to either scratch the trade or take a loss if you use a fixed stop loss on all trades.
What was teh confirmed break out entry ? You mean the headand shoulders pattern on the 5 min , and having a / diagnal line drawn under and the 5 min bar breakin below it for that push down ?
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