Rule of 10 Journal

[tortoise]

Quote from OldTrader:

Where's the rule of 10 here?

OldTrader

reaction low 10 points below last retrace on yesterday afternoon's rise.

god help me, i'm turning to volente

 

[SWhiting]

I do have one question, jagmont:

This morning the swing low was 1271.25. We went short at 1281.25 but the price (after entry) went to 1282.25 (a new swing high).

Shouldn't we stop & reverse at 1272.25? This will give us a profit of 9 pts. (ignoring slippage, etc.).

 

[monti1a]

Quote from volente_00:

If you apply that same simple concept to rule of 10 trades then the end result gets even better as your winning precentage climbs. Of of the most important rules in trading is never let a win turn into a loss.

correct volente..

It's a "turbo-booster" for your winning percentage..I know because I practice it every day..

 

[Now is Now]

Quote from tortoise:

trade #3 (tortoise 2:1)

long 1275.50

stop 1272.50

target 1281.50

God, I must be slow or something is amiss.....why this trade?

 

[Pekelo]

Quote from volente_00:

Damn, you folks have me confused now. I trade this fading 10 point moves off of reaction lows or highs.

So far the only difference between Jagmot's and Tortoise's is the exit. So far it looks that taking the 6 points gain was the right decission (I think you also advocate scaling out and taking partial profits) and Jagmot is almost back to his entry point... ES is around 1280

 

[tortoise]

Quote from Pekelo:

So far the only difference between Jagmot's and Tortoise's is the exit. So far it looks that taking the 6 points gain was the right decission (I think you also advocate scalling out and taking partial profits) and Jagmot is almost back to its entry point... ES is around 1280

No trade management of any kind -- including scaling out or partial profits. All in. All out. 2:1.

 

[tortoise]

Quote from tortoise:

trade #3 (tortoise 2:1)

long 1275.50

stop 1272.50

target 1281.50

target hit

+6 points.

- 3
+6
+6
---
+9 total today

This has been interesting, but I've gotta run now. 'Later.

 

[OldTrader]

Quote from tortoise:

target hit

+6 points.

- 3
+6
+6
---
+9 total today

This has been interesting, but I've gotta run now. 'Later.

This last one was a good trade...but didn't seem to have anything to do with the Rule of 10.

OldTrader

 

[Now is Now]

Quote from OldTrader:

This last one was a good trade...but didn't seem to have anything to do with the Rule of 10.

OldTrader

That's what struck me....it appears to have been a 50% retracement from the 81.25, wherein he took his profit and reversed the trade and caught it at 81.25.

Nice trade anyway.

 

[Pekelo]

He said:

"reaction low 10 points below last retrace on yesterday afternoon's rise."

He is refering to the low at 3:35 pm yesterday. (I think)

Since this would be a low to low entry and I usually don't use the previous day's chart, I would have missed it...