S/R Emini Journal

DonKee · Sep 19, 2006

Quote from 4re:

Support is beginning to gain strenght here at 1330 isn't it.

1330 is the S1 and .618 retracement of today's range.

1329 is yesterday's low.

volente_00 · Sep 19, 2006

Quote from 4re:

I am looking at the same thing but I'll probably short 1329.50. Support is beginning to gain strenght here at 1330 isn't it.

FWIW i see this going to 1332 - 13325.5 and then failing.

Buy1Sell2 · Sep 19, 2006

Quote from volente_00:

So when you start averaging, you must change the stop size constantly.

The stop point stays the same, it's a point on a chart that you feel indicates a bonafide reversal. That part does not change. You just don't add so many positions that the point on the chart would lose more than 2 percent of total liquid net worth.

volente_00 · Sep 19, 2006

How about the natural gas trader who lost 5 billion last week by averaging in?

romik · Sep 19, 2006

Quote from volente_00:

How about the natural gas trader who lost 5 billion last week by averaging into natural gas ?

we are getting back to having no realistic stops in place

4re · Sep 19, 2006

I am short at 29.50

Buy1Sell2 · Sep 19, 2006

Quote from volente_00:

How about the natural gas trader who lost 5 billion last week by averaging into natural gas ?

Wasn't he way overextended? I don't believe having a stop placement that loses 2 percent or less of total liquid net worth would be overextended. Furthermore, he was trading back months which are very illiquid. Also, I generally am not using more than 1 to 1 leverage .

volente_00 · Sep 19, 2006

Quote from Buy1Sell2:

The stop point stays the same, it's a point on a chart that you feel indicates a bonafide reversal. That part does not change. You just don't add so many positions that the point on the chart would lose more than 2 percent of total liquid net worth.

But your stop SIZE does. Therefore the amount you lose on the stopout changes as you postion size changes.

Buy1Sell2 · Sep 19, 2006

Quote from volente_00:

But your stop SIZE does. Therefore the amount you lose on the stopout changes as you postion size changes.

Certainly

volente_00 · Sep 19, 2006

Quote from Buy1Sell2:

Wasn't he way overextended? I don't believe having a stop placement that loses 2 percent or less of total liquid net worth would be overextended. Furthermore, he was trading back months which are very illiquid. Also, I generally am not using more than 1 to 1 leverage .

If you are not using the leverage in ES, then why even trade it ?
You would be better off trading spy and not have to roll over or pay higher commisions.