Quote from JoshDance:
Glad we can entertain! All the micro lot $0.10/pip forex traders make me laugh too!j/k
50/1 leverage, 1$ a pip/contract smartass.
ES Journal Archive (2011)
- Thread starter Buy1Sell2
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50/1 leverage, 1$ a pip/contract smartass.
I asked him nicely to wait for confirmation first, like this funny VWAP run in last 30 mins.
The market rewards what is difficult. Everyone wants to pick perfect pivot level entries (tops/bottoms) because they feel safe, you can have the world's tiniest stop loss. But if you don't get filled, then you feel like you missed the perfect sink-proof boat.
Well you can either place your limit order a couple ticks inside where you're trying to get filled (I often do this with take-profit limit orders), you can "dime the entry" as Bighog would say (meaning you hit the bid/lift the offer even if it's a few ticks from your perfect entry), or you can wait for a price action entry setup.
When you miss your perfect entry and a price move is quite strong, the 1-min chart generally sets up decent pullback entries. This afternoon I didn't have my buy stop in place for the ideal 5-min entry on a with-trend pullback setup. I didn't want to chase it and it didn't come back in a way that let me in at my "perfect" price. So I watched the 1-min chart for a shallow pullback and bought the pivot, attaining a decent profit. Since I was chatting in Skype I wasn't as fully focused and missed the next 1-min pullback entry, but I took the 3rd one and got another profit. Each long entry significantly higher along the move up, but the great thing about trading with the trend instead of looking to fade it is that the price action is in your favor and the trend followers (or their bots) are tenacious so they carry you along.
I missed the next entry long, but the key level to be broken failed to test despite two attempts and so finally there was a counter-trend signal clear as a bell and it worked out very well. (Notice how the late day pullback to the 20 EMA in ES failed to set up a price action long entry and that was the first acceptable short signal all day).
All those little pullbacks on the 1-min cahrt where the tend-followers were going long, the early counter-trend traders were shorting and their stops were fueling our gains. I was doing the difficult thing (buying high and selling higher) and the early CT-ers were doing what felt easy which was shorting as soon as price stalled and began to pull back a bit. Even experienced CT scalpers were getting trapped because the move up was very strong and left little room for scalping profit until the first lower high printed. The attempt to break that lower high was a 1-tick fbo (I'm referring to CL, but PA in a trend is similar across all instruments) and that finally set up an excellent shorting opportunity for a deep pullback to the 20 EMA
A good exercise to overcome your problem is when you miss your ideal entry and it runs strong without you and you feel that need to fade, just put on the opposite trade right then and there and place a profit target at the price where you plan to place your stop loss on the counter-trend trade.
I'm not sure if you can be a tougher nut to crack than I was, with Bighog on my case for the better part of 2 years before I began to really catch on.
ADD: OMG, Picaso, I broke through 6999 resistance! Airspace (or in my case maybe hot air?) to 8000!
I've followed this thread for a while now learning a lot but not enough to be successful long term I think. One thing that scares me out of being long in ES is a possibility of a flash crash - fast 100 point drop w/o liquidity. Being so handicapped I feel I've lost too many long opportunities this month and it hurts 
So my question is what do you guys do to hedge against a flash crash? Do you think that stop market order is enough?
TIA
So my question is what do you guys do to hedge against a flash crash? Do you think that stop market order is enough?
TIA
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