FastTrader Futures-Trading Journal
- Thread starter EMini-Player
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porgie, you sound confused. Rule #1 for a successful trader: Don't give a f*ck about what your broker says.
Unless he's a trader, he's just a broker. And a broker is a broker.
His definition of scalping is inaccurate/badly generalized. Because:
1: Which issue is he talking about? The SPooz or maybe SUNW???
2: Does that mean if your position was 5pts in the profit, retraces and you exit with 2pts, that is scalping??? A: No.
I tell you what scalping is: Scalping, by definition, is volatility-based trading, as opposed to swing-based (trend-based) trading.
You could go for a few trades per day, targetting 5pts, travel 4pts, then retrace 3pts, so you have 1pts profit. This is not scalping.
But, if you said "Price is gonna do a trace into direction X by X Ticks and you have a target there and close out there, that's scalping. You could be in a breakout-situation, for example. Imagine one of those rockets on ES. You enter at breakout, ride for 5pts in about 2 minutes, then exit. You made 5pts, but this, by definition, is a pure scalp. A nice scalp.
Now, if you instead waited for price to retrace after that move (breathe, as it does), but stayed in the position nevertheless, in the hope that it may travel further (likely after a strong breakout), in order to maybe close at 10pts profit end-of-day, that is not a scalp. Makes sense?
A scalp is generally volatility-based, and generally a single-directional, low-retrace trade. Scalpers don't sit through 'retracements' of any kind. They go when it goes and exit when it stops, retraces or reverses.
The difference is that scalping can indeed make you 10X as much profit if you like, because how many 1-3T swings are there in a day as opposed to 3Pt swings? You do the maths.
The big downside to scalping is that it's commission-intensive, so a seat, which can save you over 70% in comms, is a good idea. Most of the big traders are scalpers. I'm currently negotiating with some brokerage firms who for some reason really want my business, but most of them, as they put it, "don't even touch retail traders", they specialize on "traders who do at least 20,000 sides per month and generally OWN a seat". One broker who contacted me, put it very nicely: "I'm happy not to be working in retail brokerage anymore, it's a high-turnover business, but most get their butt kicked. It's a form of gambling, but not a recommended way of making a living". Nice.
Just to remind you, 95% of the traders (if not more!) on ET are in that "retail" bracket. Hardly any of them make really good or even just consistent money. Just look at the common ET phenomenon of "1.5pts per day on ES is the maximum long-term average.". What a joke. I've been making 4pts+ for over 6 months now, I've had 4 marginally losing days in those 6 months (3 of them 2 weeks ago), only due to the burden of commissions, while all those pikers are whining how difficult the market is becoming.
The reason it's becoming 'difficult' is because scalpers are ruling the roost, perpetuating volatility instead of direction. And most retail traders are directional, thus doomed to fail.
My best advice I can give:
Don't believe everything that's written. Particularly on ET. Remember, 95% of the people writing here are losers. How could all these theories they write about all day long be accurate? They aren't. In order to feed the minority, the majority has to be wrong, and ET contributes to this beautifully. People tend to forget that around here. They behave like this is a treasure chest. It's a treasure chest for suckers, to share sucker-ideas, to be suckered over and over again. Sorry to say that so loud, but I just couldn't help it.
So, with everyone you to talk to, ask yourself: "Is he in the 5% or in the 95%?". This is crucial, it will keep you on the right track.
It's just one sentence, to always be remembered:
"In order for a few to make big money, the large mass has to be wrong."
And this probably includes your broker. Good Luck!
Scientist.
Fast,
If you want to trade ES in today's market environment (i.e., narrow intraday ranges), pay very close attention to support and resistance areas. Start with the floor pivots. This will give you a solid start but is only half the equation. If you're not already familiar with these, just do a search and you will find more than you ever could want to know. Start studying the 30-min charts and the daily charts to help identify historical support and resistance levels. Give extra weight to S/R levels that coincide with decade levels (e.g., 1060). Also give extra weight to a S/R level that happens to coincide with a floor pivot. ES reverses far more than it breaks out these days. And when it does break out, it is usually not until late in the day. Do your homework and this stupidly simply style of trading will work well for you. Good luck.
PEG LEG JOE
Oops, did I give away too much??
I Dissagree.
you all are telling him what to do without showing him what to do.
put down your computer generated signals and learn to read the market. if you cant look at a price chart and learn to read it then what good is trading ANY market for that matter.
you should practice on the QQQ or CORN. both of these give you some leverage but not enough to blow out your account.
this way you can learn to trade and read the market.
Technical indicators are just hype. they are used to sell and make money. avoid the seminars and avoid all the garbage books.
either you understand the psychology of the market or you don't.
you all are telling him what to do without showing him what to do.
put down your computer generated signals and learn to read the market. if you cant look at a price chart and learn to read it then what good is trading ANY market for that matter.
you should practice on the QQQ or CORN. both of these give you some leverage but not enough to blow out your account.
this way you can learn to trade and read the market.
Technical indicators are just hype. they are used to sell and make money. avoid the seminars and avoid all the garbage books.
either you understand the psychology of the market or you don't.
Your expert trader said trendline indicators don't work...I am disappointed....I thought mine were working quite well...I don't have a broker....just thought I would have a little fun.....I do appreciate your lengthy reply as I enjoy reading posts that make sense. Now, I am really going to tick you off......Simple Moving Averages work extremely well, with trendline indicators.....a 90% win system is possible with the above......lagging, yes, but the entry is the key..it can be unlagged. You probably trade 1 or 3 min charts....that's good for you.....if you are happy, then who am I to argue?? You are absolutely correct...about the short moves outnumbering the long moves.....3 to 4 pts...most of the time for me...I move to breakeven probably too often.....1 to 3 pt. target is easier to achieve, of course, but trader preference determines the trading....targets, etc. 3 points per day can equal a fortune. I am talking Emini S & P 500 futures. My system gives the same picture on all markets...
How did this poor guy's journal degenerate into a discretionary vs. mechanical scrimmage?
Both styles of trading can work. Success in trading is not so black and white, not so mutually exclusive in terms of profitable trading methods. This needless dichotomization of discretionary trading and systematic trading puzzles me. Not only can both approaches work, but I believe one can combine the merits of both.
I add volume and, gasp, pivot points to my price charts. I draw trendlines on occasion and have even been known to draw support and resistance lines based on historical trading levels. Oh my God!! Does that make me a technician and, therefore, a loser? Although I look at some things on the chart in addition to price alone, I'm probably 80% discretionary in my approach. Now, I ask of you experts on the discretionary vs. mechanical panel, am I 80% a loser and 20% a winner, or am I 80% a winner and 20% a loser?? Hmmm????
Nobody asked my opinion, but here it is anyway: This dogmatic polarization of discretionary trading and mechanical trading is not constructive to someone like Fast who is in the trading learning process.
To put it another way...I DISAGREE WITH YOUR DISAGREEMENT.
Fast, ignore 95% of what you read on ET. Find your own path, brother. Good luck and prosperity to you.
PEG LEG JOE
Both styles of trading can work. Success in trading is not so black and white, not so mutually exclusive in terms of profitable trading methods. This needless dichotomization of discretionary trading and systematic trading puzzles me. Not only can both approaches work, but I believe one can combine the merits of both.
I add volume and, gasp, pivot points to my price charts. I draw trendlines on occasion and have even been known to draw support and resistance lines based on historical trading levels. Oh my God!! Does that make me a technician and, therefore, a loser? Although I look at some things on the chart in addition to price alone, I'm probably 80% discretionary in my approach. Now, I ask of you experts on the discretionary vs. mechanical panel, am I 80% a loser and 20% a winner, or am I 80% a winner and 20% a loser?? Hmmm????
Nobody asked my opinion, but here it is anyway: This dogmatic polarization of discretionary trading and mechanical trading is not constructive to someone like Fast who is in the trading learning process.
To put it another way...I DISAGREE WITH YOUR DISAGREEMENT.
Fast, ignore 95% of what you read on ET. Find your own path, brother. Good luck and prosperity to you.
PEG LEG JOE
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