S/R Emini Journal

[4re]

Quote from njones5:

1. What do you trade
2. What methodology do you use for your trading

Now I'm only trying one nq emini at a time. I watch the qqqq and I have a list of large cap nasdaq stocks and if they and the dow are mostly going up I go long but if they're mostly red I go short. Once things stall in either direction I reverse. It works okay on high volume days but lately it just whipsaws (if you can call a single tick every few seconds a whipsaw) and stops me out in both directions because I don't wait for things to develop.

Starting tonight I'm going to set some S/R lines using candlesticks and hopefully only trade when the line is crossed on good volume and look to add an indicator or two at some point. I've bought stocks for years but usually I buy and hold them as long as they continue to have positive earnings so I didn't have much use for TA.

Once you get your S/R levels set post your chart so we can look at it and see if you missed anything. I would be glad to help.

4re

 

[4re]

Hey Everybody,

We have been getting some new traders coming in here that have been sending me PM's about my method and exit strategies. This is very understandable and I don't blame someone for not wanting to go through this whole thread looking for little nuggets. I have gone through and copied and pasted a lot of messages that outline my strategies. This is something that I have been needing to do for a long time. It is a little crude as these posts were not in order. So bear with me here. If you are interested here are several word documents I would like for you to look at. I think they will add a lot of insight as to what I am doing.

That being said I am only one trader in this room there are several others tha you might want to talk with also. This journal is like America, a good variety of everything. Nobody stepping on anyones elses toes. But successful in trade set ups and money management.

Happy Reading:

4re

Also, after reading these documents go back and look at some of my charts and I hope it will become more clear as to why I am using certian levels to trade.

 

[4re]

Here is the second document:

It is on S/R copied from The Disciplened Trader by Mark Douglas.

 

[4re]

And last but not least Money Management:

This is where I get the most criticism, people thinking I need to go for more points per trade. I have explained why I am a 2 point trader several times. I'll have to say this. If you are confident and want more points great but this is my style and I don't plan on changing. I let everyone else trade their method and this is mine. I am happy with putting on a larger position and getting out with my 2 points one time a day. It takes the stress off of my trading and puts money in my account.

4re

 

[boro45]

Thanks for putting all this together, 4re.

I read through it tonite and like what I see so far. Hopefully I'll find some time soon to backtest it on my charts.

 

[4re]

Quote from boro45:

Thanks for putting all this together, 4re.

I read through it tonite and like what I see so far. Hopefully I'll find some time soon to backtest it on my charts.

I hope that covered enough to give you an idea anyway but just ask if you have any questions.

 

[boro45]

That excerpt from The Disciplined Trader makes a lot of sense. While there may be good trades within the S/R levels on any given day, the higher probability trade may just be to trade those levels the way he suggests and perhaps an even higher probability to trade only the breakouts.

Definitely has gotten my wheels turning.

Anyone know where to get point and figure charting to help see the S/R levels better?

 

[4re]

Quote from boro45:

That excerpt from The Disciplined Trader makes a lot of sense. While there may be good trades within the S/R levels on any given day, the higher probability trade may just be to trade those levels the way he suggests and perhaps an even higher probability to trade only the breakouts.

Definitely has gotten my wheels turning.

Anyone know where to get point and figure charting to help see the S/R levels better?

Glad to help. The important thing when daytrading emini is to make sure that the breakout can happen by at least .50 point and still allow a 2 point gain. There are a couple friends of mine that I have been teaching and one thing has helped them is this. I know they are anxious to trade so simulation only works for so long. I tell them to go ahead and trade but just go for 1 point gain in the beginning. That helps them stat see their accounts grow and builds confidence at the same time. You might consider this approach until you really feel good about it.

GL today,
4re

PS. Take a look at this daily chart. It looks kind of bearish to me. The way it is bouncing off the 20 day EMA. It could pop out of this pennant to the upside before dropping down though. So don't be surprised.

 

[4re]

Just to let you all know I am about to step out and take care of some business. I won't be trading this morning. I will be back in time to at least check out the afternoon. I do plan on trading a smaller position this afternoon and possibly going for more points.

Good Day All,

4re

 

[romik]

if anyone can afford to trade multiple contracts per position, the following can be used, there is more risk, but you can always measure up before trimming, sort of speak. I do use this method when trading breakouts of S/R.

Initially I would use 1/2 my maximum position size, PT 1.5-2 points with 2 point stop.

If I get stopped on initial entry I will re-enter 2nd approach with maximum position size keeping same strategy, though I would scale out after 1 point gain and after that stop will be moved to entry price.

I trade this of WRB formation close price breakouts in the next bar(not the same as S/R levels discussed in this thread). Knowing the pattern and probability research has helped me establish whether this strategy can be applied or not.

This is a quick summary, I can answer some questions this morning, as I will not be trading the FOMC today.