My nq price action method

deaddog said:
How do you define RISK?

My definition is the amount of my capital I can lose on any one trade.

Big losses come from not taking small losses.
More...

Hey DD....

How I define trading risk;

Anything and everything that can occur – which cost us money – outside of normal operating expenses

I really don’t view losing trade as anything other than necessary…, and a normal part of trading – when managed properly

Yes normal trading losses are risk… but wait there’s more….




Fed outlawing the shorting of financial stocks (that’s my personal most recent black swan)

9/11

Flash crash

Perfectly valid trades broken

Internet lockup at the wrong time

Lose electricity

Can’t find the broker’s number

Pet jump on the key board

Stepped out to take a leak / grab a sandwich – price went balls out against your position

Abnormal amounts of slippage

Hit the wrong key

Broker accounting screw ups

Distractions (in all their various forms)

On and on – there are so many… they seem to ooze out of the woodwork at times

=============

Now.., I can sit here and tell Slugar this till I’m blue in the face

I can only hope some of it sinks in

================

Aside;

I've never seen a healthy dialogue regarding risk on this forum - we.., who are not shy about it - should have one

And as Slugar is making really good strides - I think he needs to be aware of the pitfalls - or at least some of them - before traversing this minefield we call trading

imo - normal trading losses are the least of it


RN
 
if you where a cape and have a big S on your shirt ,you might be right 70%, that means you will have 3 out of 10 trades go against you, those losses are the cost of placing a bet, the quicker you recognize em and close em the less you give back, you have to be better at risk management eventually, this is mandatory to grow your acct, it's not a personal affront to your ego, just a fact in money management, most of us mortals, never get close to the 70
 
Redneck said:
Hey DD....

but wait there’s more….




Fed outlawing the shorting of financial stocks (that’s my personal most recent black swan)

9/11

Flash crash

Perfectly valid trades broken

Internet lockup at the wrong time

Lose electricity

Can’t find the broker’s number

Pet jump on the key board

Stepped out to take a leak / grab a sandwich – price went balls out against your position

Abnormal amounts of slippage

Hit the wrong key

Broker accounting screw ups

Distractions (in all their various forms)

On and on – there are so many… they seem to ooze out of the woodwork at times

=============


And as Slugar is making really good strides - I think he needs to be aware of the pitfalls - or at least some of them - before traversing this minefield we call trading

imo - normal trading losses are the least of it


RN
More...

I'd put the above in a class that I'd call "Shit that Happens"
or "Life"

I have no control over that but I can plan for it and try not to panic.

The risk I have a smigeon of control over is how I take my many losses.
 
deaddog said:
I'd put the above in a class that I'd call "Shit that Happens"
or "Life"

I have no control over that but I can plan for it and try not to panic.

The risk I have a smigeon of control over is how I take my many losses.
More...


Thank You DD

You’ve provided the antithesis to my approach on risk

Slugar can now do a compare and contrast to assist in figuring out his methodology to managing to risk

And how comprehensive to make it


eta; I maintain we are risk managers - first and foremost

RN
 
Trades for today.
1.long on a higher low at 3693 stop 3690.25 target breach of up move trend line.
2.long on another higher low 3695.75 stop 3693.25 target breach of up move trend line.
3.long on support at top of a range at 3708.25 stop 3605.
75 target breach of up move trend line.
 
Trade 1.
long on a higher low at 3693
stop 3690.25
target breach of up move trend line.

Comment

Also a quad bottom @ ~3690.25

Entry – Solid
Stop – Solid
Target – Solid


Trade 2.
long on another higher low 3695.75
stop 3693.25
target breach of up move trend line.

Comment

Notice how R became S

Entry – Solid
Stop – Solid
Target – Solid




Trade 3.
long on support at top of a range at 3708.25
stop 3605.

Comment

No target??????

Entry – Solid
Stop – Solid
Target – ????


Overall;

Good stuff

H&D beautiful - it's this quality..., that needs to be second nature

RN
 
Thursday a.m. was full of overlap I only had 2 trades today.
1. Long on a higher low at 3723.50 stop 3721.25 target last swing high 3729.75
2. Long on support on the up move trend line at 3729 stop 3726.75 target breach of up move trend line.
 
Overall Comments

The range noted – a bit too big to encapsulate the pertinent PA – imo only

One TL is off a bit – I circled it in red

Everything else golden

Good job remaining patient


Thursday a.m. was full of overlap I only had 2 trades today.
More...

No doubt…. even the first up move contained overlapping PA





Trade 1.
Long on a higher low at 3723.50
stop 3721.25
target last swing high 3729.75

Comment

Beautiful



Trade 2.
Long on support on the up move trend line at 3729
stop 3726.75
target breach of up move trend line.

Comment

Beautiful

Good job

=========================

On another note;

2 tests (bet you thought we were finished with them)

Test 1;

The NQ is an index made up of 100 stocks

What event is about to occur that potentially could significantly impact the NQ

(Thanks to Ammo I picked up on this)

We must always be current with the bigger picture



Test 2 – it really more of a thinking exercise – but a very important thinking exercise imo


What differentiates the trades you take…, from the ones you don’t

I see many LH / HL..., and even S/R levels – and I’m not suggesting you trade them – actually quite the opposite

I want you to understand why..., you are letting them pass without a trade

Because - I don't want you developing an itchy mouse finger and screwing yourself

RN
 
Redneck said:
Overall Comments

The range noted – a bit too big to encapsulate the pertinent PA – imo only

One TL is off a bit – I circled it in red

Everything else golden

Good job remaining patient




No doubt…. even the first up move contained overlapping PA





Trade 1.
Long on a higher low at 3723.50
stop 3721.25
target last swing high 3729.75

Comment

Beautiful



Trade 2.
Long on support on the up move trend line at 3729
stop 3726.75
target breach of up move trend line.

Comment

Beautiful

Good job

=========================

On another note;

2 tests (bet you thought we were finished with them)

Test 1;

The NQ is an index made up of 100 stocks

What event is about to occur that potentially could significantly impact the NQ

(Thanks to Ammo I picked up on this)

We must always be current with the bigger picture



Test 2 – it really more of a thinking exercise – but a very important thinking exercise imo


What differentiates the trades you take…, from the ones you don’t

I see many LH / HL..., and even S/R levels – and I’m not suggesting you trade them – actually quite the opposite

I want you to understand why..., you are letting them pass without a trade

Because - I don't want you developing an itchy mouse finger and screwing yourself

RN
More...
Apple stock is splitting
 
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