Swing Trade Play 11/11/05
- Thread starter MacroEvent
- Start date
well so far we at least have some pressure on the downside ---- the ES 1230 area is the key bust i want to see to feel that the 1218.50 level will be a possible target soon. it may take tomorrow to see 1230 broken if the news can keep some pressure to the sell side {CPI}. i will patiently wait. 
ok --- i am going to cheat here {bad me} we seem to be holding 1230's {a small run through but not a good downward thrust yet} so i have covered 1/8th at 1230.00 due to going into tomorrow with another set of news releases {that could run the market right back up for all we know}.
so i have 10.25 points on 1/8th of my position so far.
so i have 10.25 points on 1/8th of my position so far.
the test of 1230.00 for the ES was one event i really wanted to see today --- so of course i was not able to get that test out of the open, no i had to wait for the market to go all the way up to 1240's again first.
isn't that just how things seem to work out sometimes --- well the most difficult trades are usually in the end the ones that pay the most.tomorrow i would be very satisfied with any price action that will get us a close below 1230.00 for the ES --- if we end up with a big sell off day then my chances of hitting the 1218.50 level is somewhat probable {if we come down to about 1220 or 1221 and the day is about to finish then i may cover another 1/8th of the position ---- to make up for this i would then lower any other targets i go for once 50% of the overall position is covered}.
flat day with no trade action for the swing trade --- will see what the news releases tomorrow may be able to do as 1229/1230 level still holds in light trading.
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ok today we final had some range extension, and i was able to bring my position back to full size {i added back the 1/8 which i covered the other day}. with the 1/8th position add back and all the scale-in order replacements i was able to move my cost basis for the day on the full position to 1243.75 {that last nice pop and drop to 1246.25 was helpful}. so i am now sitting underwater about 1.25 points from my position cost basis to the current price level --- all the little order replacement 1 tick grabs throughout the day and the 10.25 points i booked on the 1/8 from the other day give me enough earned cushion for a stop area of 1250.
tomorrow will be a good test, if we can chop sideways for a while i can work my cost basis higher --- now if we have any selling then i will pull 1/8th again at the 1233.50 price as my first target. my next target would then be down at 1218.50 as i have stated before.
tomorrow will either be a real easy day if there is selling, or if we crawl up i will have to work hard and smart at moving my cost basis higher. if tomorrow just moonshots then i will be ready to flatten around the 1250 level.
tomorrow will be a good test, if we can chop sideways for a while i can work my cost basis higher --- now if we have any selling then i will pull 1/8th again at the 1233.50 price as my first target. my next target would then be down at 1218.50 as i have stated before.
tomorrow will either be a real easy day if there is selling, or if we crawl up i will have to work hard and smart at moving my cost basis higher. if tomorrow just moonshots then i will be ready to flatten around the 1250 level.
Macro:
What is the objective here.. to hold a position at every increment throughout a defined/moving range .. but what is the nitty gritty in techy terms on how you shift to accomodate the price action? i know you have two accounts.. do you liquidate the worst position increments on both sides every increment and then re-buy (reposition) based on the shift in range? I just want to follow along this thread knowing what you are doing
Quote from fandelem:
Macro:
What is the objective here.. to hold a position at every increment throughout a defined/moving range .. but what is the nitty gritty in techy terms on how you shift to accomodate the price action? i know you have two accounts.. do you liquidate the worst position increments on both sides every increment and then re-buy (reposition) based on the shift in range? I just want to follow along this thread knowing what you are doing
ok still working the position here at 1250.50 to 1251.50 area adding additional positions that i would use to replace my 1243.75 cost basis positions {we have enough resistance here to stay in the trade so far --- and we have a major s/r level here for market profile}.
fandelem - yes i keep holding the higher positions and then any lower previous positions are covered at +.25 to pay for the commissions of that previous price level attempt ---- so if the price action will bounce around enough during an upward movement of price you are then able to "replace" your previously lower price positions. you also have to remember we are on the 16th day of the SPX not breaking a previous major support level and this is more of a "probability" trade for me ---- it has been many many years since this has happened. so i am trading this swing as the price action movement will allow to shoot for the probability that we will break one of these major s/r levels soon.
so i am fighting this one out today and i am looking for any lower pullback today to "replace" my positions from the lower price levels that currently form my 1243.75 cost basis from yesterday. so you do not need two accounts to do this but you need to have the main swing trade position "only" be a smaller percentage of your account that you trade the swing from. at the end of each day you should only be holding the the total anount of positions that you have decided will make up your total swing position --- do not keep holding more and more as price moves against you ---- ONLY what is your 100% strength size. you can use your overall account during the day to keep attempting order replacements as price action will allow, but at the end of the day you need to flatten down to what is a 100% strength swing trade size for the trade you are attempting.