S/R Emini Journal

[BlowFish]

Quote from ndjeff7:

Ok, quick question to everyone here. I'm actually seeking a little psychological advice. I followed my plan this morning and was short YM at 11299 right before the open looking for it to go down and test the top of the big gap at 11281.

I put my stop order in and my buy order in at 11282 but after the market opened up I didn't like the price action so I got out for a 2 tick loser. Of course price immediately dropped down to that gap. I only had a 10pt stop in so even if I got stopped out it's still a small loser. I have a habit of getting into good positions but then not letting the trade run it's course. I'm only trading 1 contract so I'm not taking huge risk, but I'm wondering if anyone else has ever had this problem before.

Absolutely. Something I have suffered from for an eternity - pretty much just how you described it. Still not on top of it despite trading profitably day to day.

For me its fear based with a pinch of ego (wanting to be 'right' even though we all know its about probability rather than individual outcomes). Intellectually I think I have a good handle on it however the subconscious can be pretty strong. I have reached the stage where I can calmly watch things unfold but the &^%$£ing subconscious nips in and clicks the mouse!!

I hope those that have offered help/advice will post here rather than privately as I am sure there are many that would benefit.

I wonder if an order helper platform (like Ninja Trader or Zeroline) that locked out the user after being filled might be the answer!

Cheers,
Nick

 

[romik]

Quote from ndjeff7:

Ok, quick question to everyone here. I'm actually seeking a little psychological advice. I followed my plan this morning and was short YM at 11299 right before the open looking for it to go down and test the top of the big gap at 11281.

I put my stop order in and my buy order in at 11282 but after the market opened up I didn't like the price action so I got out for a 2 tick loser. Of course price immediately dropped down to that gap. I only had a 10pt stop in so even if I got stopped out it's still a small loser. I have a habit of getting into good positions but then not letting the trade run it's course. I'm only trading 1 contract so I'm not taking huge risk, but I'm wondering if anyone else has ever had this problem before.

That's why I have come to the conclusion of NOT interfering with initial stops, that way I have no problem being in the position when my stop is 2.25pts from entry and I am -1.75pts, I've been saved by the bell quite a few times. But some will disagree, not a problem with me.

Another thing to mention is this.

How many times have we made the right entry, which was inappropriately timed keeping in mind our stop level? But being out of the trade and stopping for the day, coming back later and realising that we have been VERY right initially? Well, quite a few times in my case.

That's when I realised that there is another way, not walking away, but sticking to your guns. In my case I primarily trade off S/R levels. If I go short upon breach of a support level and price starts reversing I stay calm, no, I make myself calm by telling myself - YOU HAVE A STOP and IT'S ONLY 2.25 PTS AWAY. If my stop level is reached, then I pull the plug. Do I walk away? Not on most occasions. I stay and wait until the next time my level/s is hit and then I double up on the last trade. And most of the time my 2nd one is a good one, no loss on the 1st loser, only profit.

The key to this is self confidence, appropriate capitalisation and ability to find the right S/R levels.

 

[belavia]

Romik, I find it interesting this is working for you. Seems that many say enver to double up after a loss. Yet, you make it work.
If your stop is 2.25 away, what kind of gain do you look for?
I was looking into 1 stop/2 gain, but perhaps I will get whisawed out too much.

 

[romik]

Quote from romik:

I would say if price action takes us to 1298 and falls back to 1294.00, then I would short to 1289 range, otherwise a break of 1302 and I would be long there.

We are still within a 3 day pennant and trading within a 5 day channel, a breakout of which is going to signal a thrust up or down.

 

[romik]

Quote from belavia:

Romik, I find it interesting this is working for you. Seems that many say enver to double up after a loss. Yet, you make it work.
If your stop is 2.25 away, what kind of gain do you look for?
I was looking into 1 stop/2 gain, but perhaps I will get whisawed out too much.

Why shouldn't one double up after a loser, do you have an answer to that?

My risk/reward is 1:1 on average. I wouldn't be able to comment on yours as I have nothing to comment upon.

 

[belavia]

Quote from romik:

Why shouldn't one double up after a loser, do you have an answer to that?

My risk/reward is 1:1 on average. I wouldn't be able to comment on yours as I have nothing to comment upon.

Youre right, i dont have an answer to that. Ive just blindly believed what others said.

What surprises me is that charts can accurate enough to allowa significant profit after commissions with a 1:1 R/R ratio. But maybe only you can do that.

 

[romik]

Quote from belavia:

Youre right, i dont have an answer to that. Ive just blindly believed what others said.

What surprises me is that charts can accurate enough to allowa significant profit after commissions with a 1:1 R/R ratio. But maybe only you can do that.

One of the answers where doubling up is considered a bad practise is where one is an intraday reversal trader. That is not part of my methodology, I trade breakouts out of a tight range, that is very different in principle.

You will find quite a few trade 1:1 with a very reasonable PF.

 

[ndjeff7]

romik,

I think your analysis was spot on, I need to just chill out and leave my initial stop in and not try and rationalize getting out of a trade early. I'm not using extraordinarily wide stops, so even when I get stopped out I'm not taking much of a hit.

The way I feel is that I just need to battle through this mental block and get a few trades where I stick to my plan. I feel that once I get over that hurdle it will make a world of difference in my PnL and my stress level. It is glad to hear that many others have battled through the same issues. It's great to hear the different ways that people have overcome this psychological barrier.

 

[porgie]

one error that will plague u is stepping in just before market opens.....hasn't worked for 5 years....not without brain damage....for gamblers.........and most likely u r on 5 min chart or smaller........if u r daytrader have fun......playing with the low percentage stuff ...only best traders can handle low % systems...........and yes, the most common errors involve stops.......that is because we are all created by God.....we do the same things others do.....that is why we set our own traps and end up creating exactly what we are trying to avoid......mark douglas theory......and behold the run is ours to watch as we got stopped and don't have the guts to re=enter when we see what happened.......very difficult to enter after fingers just got burned.......i have done this more than most and i am not proud to say that.......please emini daytraders .....very few survive but market open is high percentage 50/50........no edge there..........slow down........don't know what charts u use but no gaps for me......gaps??? emini's???? YM today a gap........i started at 6 cst........no gaps.......

 

[romik]

Quote from belavia:

Youre right, i dont have an answer to that. Ive just blindly believed what others said.

What surprises me is that charts can accurate enough to allowa significant profit after commissions with a 1:1 R/R ratio. But maybe only you can do that.

try this brain teezer

EDIT: This 1 min TF would qualify as an excellent S/R when market opens @ +0.00 change, it has to go somewhere, right? What is an average daily swing in ES? JohnBob where are you and your stats?