S/R Emini Journal

[4re]

Quote from JimmyJam:

2 pts per day vs. 10 pts per week - see what i'm say'in?

1) i think 10 pts per week is "doable", because of the ranginess/multiple setups on any given day that the markets will give you. AND you have a whole week to "work with"

2) i don't think 2 pts per day, consistently, is doable (unless you're Franz, of course ). i'm serious folks i think this is a winning money management strategy, please chime in with your 2ct regarding this (if you wanna).

best,

Jim

While I agree to a certain point. It kind of depends on the number of contracts use per trade. If you trade 2 contracs at a time and net 2 points per day that is good. Profit is always good.
If you trade 20 contracts per trade once a day and have 4 winners and one loser that is better. So I guess it just depends on the amount you trade.

I set a dollar figure every month that I expect to bring in. I try to do it almost mechanically. If I miss it by a little no problem if I miss it by a lot then I have to make adjustments. So far that has not happened. Knock on wood...

To each his own. I just hope we are all making money every month.

Cheers

 

[JimmyJam]

Quote from JimmyJam:

I have a SLM (Sell Stop Limit) in at 1268.50, because I say it drops back into the abyss, but we'll just have to see. [that's previous resistance, look left, see? - it either holds or it doesn't, no inbetweenies]

Quote from 4re:

The main problem I would have had going short at 1270 at this is that it is in the middle of my channel 1268 - 1272 (which actually goes up to 1274, I was leaving some wiggle room). And we were in at least a short term divergence on th live S&P index. Moving averages had 20 on top of 60 day. I would only have gone short there if you are going to hold for a while and could tolerate a wide stop loss. IMHO.

***

See it does take all kinds (in fact, this is what makes the market)... if there are any divergence traders out there, what do you see now?

Jim

 

[4re]

Quote from pkts:

Hey 4RE,

Thanks for the log, I'm enjoying seeing how another trader runs things. A couple of questions:

1. Do you have to watch the system or can you set it mechanically? I took a look at the S and R for today. If I had mechanically traded it, I would have been stopped out. What do you look for (as in a reversal) that tells you to get out with a smaller gain than you originally thought?

2. I see a lot of resistance at 1275, does everyone agree? Would you put in a buy stop at 1276 tomorrow if we closed at around the current level 1272?

Thanks again.

pkts

Thank You,
It is the work from everyone that will help this journal be really great. I hope. To answer you questions:

1. Yes, I would always suggest watching it. Anything can and will happen. I am only human, and the market is run by humans. So I think it takes a human to trade it. As far as what I watch for reversals. It is a lot of things. Number one and main thing is to trade the chart. If I see an island reversal candle appear I hit flatten all, market will usually reverse. The more in the money my trade is the tighter my stop is. If I am in the money 1.5 points and we reverse I'll get out with 1 point profit. If I get 1 point in the money the most I will lose is 1 point on the trade.

Like I have said before these trades have to have momentum behind them or I am out even at even money I'll get out.

2. Your second question, yes I see some resistance up there. I'll have to wait for market to close though to make my determination.

Hope that helps you and good luck/skill
4re

 

[JimmyJam]

Quote from 4re:

While I agree to a certain point. It kind of depends on the number of contracts use per trade. If you trade 2 contracs at a time and net 2 points per day that is good. Profit is always good.
If you trade 20 contracts per trade once a day and have 4 winners and one loser that is better. So I guess it just depends on the amount you trade.

I set a dollar figure every month that I expect to bring in. I try to do it almost mechanically. If I miss it by a little no problem if I miss it by a lot then I have to make adjustments. So far that has not happened. Knock on wood...

To each his own. I just hope we are all making money every month.

Cheers

Oh, I know you've got your game in motion 4re, that's why I'm sitting here learning from you. I'm just trying to engage everyone else in dialogue, while getting them to concretely determine what really works for them.

I'm gonna have to start getting ready for the night gig now.

Best Regards,

Jimmy

 

[4re]

Quote from JimmyJam:

***

See it does take all kinds (in fact, this is what makes the market)... if there are any divergence traders out there, what do you see now?

Jim

You got that right. I see a waterfall starting that could be big. How about you?

 

[4re]

Quote from JimmyJam:

Oh, I know you've got your game in motion 4re, that's why I'm sitting here learning from you. I'm just trying to engage everyone else in dialogue, while getting them to concretely determine what really works for them.

I'm gonna have to start getting ready for the night gig now.

Best Regards,

Jimmy

That's cool. Have a good work night. See you in the AM

 

[4re]

Quote from 4re:

You got that right. I see a waterfall starting that could be big. How about you?

They saved it at the 20 moving average. Another reason I only trade my actual calls. Very easy for me to make a mistake trade on the fly. I would not have shorted until price broke through the 60 day moving average anyway.

 

[4re]

Hey Guys,

This is to all the regular posters in here. Since I started this journal I tend to get several PM's a day from people that come in here to look around and hopefully take some good info from this thread. I have been asked if some of you guys would upload your charts with an explaination as to why you took a different trade and what you were seeing at the time. I think it would be nice to see as well. I know Jimmy has a different method than mine and I would like to see what you are seeing as well. I singled you mainly because I know you are trading differently than I am.

So if you take a different trade than I do would all you guys mind showing me what you are seeing?

Just would like this thread to be as educational as possible.

Thanks,
4re

 

[riaamaan]

Hello 4re,

Thanks for this thread. I've been watching it since shortly after you opened it. I'm very interested in trying this method.

I've been trading stocks retail for several years and have on balance, won. I'd still say I've got work to do but I love trading and desire to make a living of it someday.

It's been since 1995 that I've traded futures and even then, I didn't day trade them. That was even before the advent of widely available internet.

I'd like to do more work with this strategy, but need to find someplace with emini charting with small time increments. I'm also interested in knowing what various tools are needed to accomplish my goal. Certainly some charting software and a trading platform...anything else required? I would like to know who might have a sim account to test the waters with.

Thanks in advance for any assistance.

Riaamaan

P.S. This is clearly one of the better threads on these boards as it lacks the venom and personal jabs I've seen on others...pointless waste of time.

 

[4re]

Quote from riaamaan:

Hello 4re,

Thanks for this thread. I've been watching it since shortly after you opened it. I'm very interested in trying this method.

I've been trading stocks retail for several years and have on balance, won. I'd still say I've got work to do but I love trading and desire to make a living of it someday.

It's been since 1995 that I've traded futures and even then, I didn't day trade them. That was even before the advent of widely available internet.

I'd like to do more work with this strategy, but need to find someplace with emini charting with small time increments. I'm also interested in knowing what various tools are needed to accomplish my goal. Certainly some charting software and a trading platform...anything else required? I would like to know who might have a sim account to test the waters with.

Thanks in advance for any assistance.

Riaamaan

P.S. This is clearly one of the better threads on these boards as it lacks the venom and personal jabs I've seen on others...pointless waste of time.

Riaamaan,
Thank you for the nice words. I started this journal with people like you in mind. A place where you could get some help without getting the run around. The tips that I give here are only my opinion. There are other really great people in here that will hopefully give their opinions as well. For starters the tools you will need to begin.
Tools:
1. A brokerage firm
2. A charting service
3. A trading platform
You can get all three from one source or separately. Alaron Futures offers all three in one package and will allow you to sim trade first. I use GHCO Futures, E-Signal Charts,and Ninja Trader as my platform. You can save a lot of money using Alaron and they have a good reputation.

The most inportant thing is to gain an education is this market. I don't know your level of trading education but I would suggest picking one important subject and develop it to the point where you can trade any market with it. My specialty happens to be S/R breakouts. Some people like reversals. I believe there are a lot of different indicators that will work fine if you take the time to develop at least one and stick to it no matter what anybody else says. I listen to others but I trade my way without question. You have to decide what style fits you best. Feel free to talk to the others on here I think they will help you along as well. Just try not to walk away with a mish mash of different ideas and think it will work. That is when you be haphazard in your trading.

Hope this helps you
4re