ES Journal Archive (2011)

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Quote from ammo:

I have no plan,framework for scalping,make 300,give back 500,then ride it to a 1000 max loss,this is why i tried averaging,scalping is much harder at this stage than averaging ever was,you have to use stops,but if they are less than 3 pts,they will get hit
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I have never ever made money scalping - any run of success was followed with prolonged decline. It just to hard to be as fast as the bots and having order filled all the time. I seriously believe scalping is for hardcore gamblers or young kids wanting to play something resembling a computer game. Anyone who can scalp making 100s of trades per day and be successful gets full credit.

I have however been successful in day trading - usually 2-3 trades per day. You have to tight stops and be very disciplined - revenge, over riding system, moving stops as well as constantly wanting to be involved in action can kill many day-traders.

I would say to any new trader - only day trade on your SIM account for years (you will learn alot about price action after watching 1000s of hours of action) and swing trade in the mean time. I think alot of them will find they will stick to swing because it is so much easier.

If anyone reads my original posts on this site as a green trader i was hardcore day-trade mentality. I always ignored what the wise heads such as Buy1Sell2 said - the guy was telling a lot of truth in alot of his posts but like a lot of others we thought we were right.

Many years later i wish i followed his advice earlier - i could have had more time to spend on my other business and alot less stress :D
 
Quote from ammo:

averaging in won't work for scalpers,you seem to know little more than scalping when it comes to trading,the 95% of all 1st year bust out traders are all scalpers,you've provided nothing more than negative inuendos in multiple posts on averaging,even when explained,you refuse to let the info register,i think you've made your point,and the scalpers agree with you. ....................................perhaps you could post something useful,the anti averaging thing is way past old,why don't you show all us dummies how to scalp and use stops,live ,so we know your not just hot air,another common complainer on ET..YOU CONVINCE ME...
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I agree with you that he is a clown. Thinks he knows everything about trading but only can scalp. I make more money with 10 trades a week with only 1 Emini than he can make with his hundreds of contracts every day. He has no clue where the markets is going and even has difficulties to scalp a few points a week.

When i saw his profile the first time i thought to have read that he was a professional trader with 17 years of experience. But that info is not on his actual profile. Maybe i did not read very well, or maybe he removed it after i received his first negative posting.

I
 
Quote from jackson222:

Would you guys classify me as a scalper? I don't think of my style as scalping in the purest sense. Many ultrahigh speed trades. I don't really do that do I? Once in a trade I have some idea about how long I'll hold it and the target, but the price action that follows entry ultimately determines what i do.

I'm not even sure I have a strategy, i guess I do but it's certainly not explicit. I try get a feel for the ebb and flow and just go with it.
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Unless you have been profitable consistently over a couple of years, i would have to say you are simply gambling. I hate to say that because i hate discouraging anyone without giving you and real info regarding finding an edge.

I honestly think if you believe you can just follow ebb and flow without any sort of edge or back testing then are gambling or playing a computer game on speed.

I hope i am not coming off as a know it all but markets are very difficult to predict - especially every ebb and flow. Volatile market will destroy many scalpers with small stops and dull markets will kill scalpers due to no real pullbacks or movement.

Sorry but its just my opinion - i truly hope i am wrong.
 
"Averaging down on entry, in a market with a leptokurtotic distribution of price changes, which all markets have, in all timeframes, has detrimental effects in the return-on-risk of any positive return strategy, and devastating results for any cuasi-random entry strategy". Basic Math Trading Theorem by eudaemon, Master Clown.

Furthermore it destroys you psychologically as they put the trader always against the flow.

Want proof?. Ask atticus or someone else. You don't have to believe me.

All premium sellers, averagers, and RTM algos are destined to ruin in the long run, and have dismal returns and enormous capital requirements. They are also very unforgiving of trading errors and better implemented with a robot.
 
Quote from eudaemon:

"Averaging down on entry, in a market with a leptokurtotic distribution of price changes,
which all markets have, in all timeframes, has detrimental effects in the return-on-risk of any
positive return strategy, and devastating results for any cuasi-random entry strategy". Basic Math Trading Theorem by eudaemon.

Furthermore it destroys you psychologically as they are always against the flow.

Want proof?. Ask atticus or someone else. You don't have to believe me. All premium sellers, averagers, and RTM algos are destined
to ruin in the long run, and have dismal returns and enormous capital requirements. They are also very unforgiving of trading errors.
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What I never been able to understand about averaging down is that why do it instead of re entering at a better price and saving some losses in the process.

FoN
 
Quote from eudaemon:

"Averaging down on entry, in a market with a leptokurtotic distribution of price changes,
which all markets have, in all timeframes, has detrimental effects in the return-on-risk of any
positive return strategy, and devastating results for any cuasi-random entry strategy". Basic Math Trading Theorem by eudaemon.

Furthermore it destroys you psychologically as they are always against the flow.

Want proof?. Ask atticus or someone else. You don't have to believe me. All premium sellers, averagers, and RTM algos are destined
to ruin in the long run, and have dismal returns and enormous capital requirements. They are also very unforgiving of trading errors.
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Lol your such an idiot i almost feel bad for you. You sound like one of those academics who say the market is 100% efficient and random. Maybe you was part of the Long Term Capital Management bunch.

Anyway you are hard-headed and you will not change so i wont waste anymore energy on you. This is one of the reasons i rarely post on ET - people like this think they know everything.

As for losing overtime - show us your account and equity curve over the last 3 years - if you are man enough to post it then i will post my smooth as 'Vida Guerra's ass' curve :p - lest see who had better returns :D I can spot pikers like you a mile away.
 
Quote from spike500:

I agree with you that he is a clown. Thinks he knows everything about trading but only can scalp. I make more money with 10 trades a week with only 1 Emini than he can make with his hundreds of contracts every day. He has no clue where the markets is going and even has difficulties to scalp a few points a week.

When i saw his profile the first time i thought to have read that he was a professional trader with 17 years of experience. But that info is not on his actual profile. Maybe i did not read very well, or maybe he removed it after i received his first negative posting.

I
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I don't know everything, I just know what's important. The rest I probably forgot.

I thought you wanted to hide your trades from your broker. Now I know that you want to hide them from your mommy. Ask jackson222.
 
Quote from FreakofNature:

What I never been able to understand about averaging down is that why do it instead of re entering at a better price and saving some losses in the process.

FoN
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This is just too simplistic - lets say you are extrememly bullish - the daily and weekly chart is screaming buy.

A lot of swing traders can have a little cushion on their trade - traders like me have a zone where we would like to enter. None of us know exactly where the market will turn each time.

As long as market is still bullish in my strategy and price is in my zone i will build my position. The market may take off straight away or it might still be trading in a range (daily range) - in this case if i am in the trade and if i get bullish confirmation then i will add even on the way up. Giving up 10 points for a swing trader is nothing.

However, if you think you are going to stop out and then re-enter every-time then that's okay but i can guarantee alot of those moves will never come back to your next entry point. Also, why would you stop out unless your system has given you confirmation that your original trade was wrong? That is just silly trading and common to the bottom and top picking traders.

As long as you have your buy/sell zones and you are well within your risk management parameters you can build a position. Markets rarely have 'V' bottoms on the daily and nearly always have fat tails.

You have to know how to trade of the daily and weekly charts and then you will realise why averaging in is not such a big deal. Only those on ET will dispute this - i can guarantee no matter what PTJ says most top traders average in to major positions.
 
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