Techniques for Day Trading the ES, NQ, YM, MES, MNQ, and MYM

volpri said:
This compounding effect is something I learned years ago from a trader called J.M. Hurst.
I don’t think he called it that but he explained it in ways I could grasp it.
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p. 10 of Hurst's "The Profit MAGIC of Stock Transaction Timing" --

the big money in investing stems from the
principle of "profit compounding" -- of short-term trades​
 
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CharlesS said:
p. 10 of Hurst's "The Profit MAGIC of Stock Transaction Timing" --

the big money in investing stems from the
principle of "profit compounding" -- of short-term trades​
More...

It’s a good book, the concepts solid and when implemented great to experience!
 
"profit compounding" -- of $hort-term trades

Another counter-intuitive.

What ? -- Usually one thinks of scalping, Volpri's favorite tack, as for hyped-up impatient minds that can focus for only a few minutes at a time, minds lost to anything longer (or for minds periodically pulled away from the market to serve the prosaics of home maintenance -- gotta serve somebody, as someone once said).

Compounding requires a long-term view to envision, quite the opposite of the scalping mindset.

So when the 2 minds of short-term trading and long-term compounding combine, BINGO !

This counter-intuitive pairs interestingly w/ another counter-intuitive that is core to this thread -- the profitable traders equation schema per Volpri where high-probability is the key factor, as discussed earlier in this thread.

I imagine that Hurst, writing in the early '70s, would have referred to Volpri's trading as "hyper-short term trading," leading to "hyper-profit compounding"
 
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Volpri,

Questions please:

In your trading are you using hard stops loss to exit losing trades or do you exit when you think the price will continue to go against your initial trade.
 
Most of the time I use hard stops. Usually in place, bracketed in, on my entry. And PT bracketed in also on my entry. However, both are always subject to change (i.e. I will move them on the DOM) If the dynamics of the trade, after entry, indicates I should move them. I am not always able to move them in a fast moving market as one or the other can get Hit before I can move them. If it is the SL that gets hit that is generally ok (It probably needed to be taken out) but if it is the PT then I am not so happy about that but it is what it is.


I also not only want a hard stop but I want a “give up” SL doubled up in size (and that can be mental or hard I prefer hard) on an averaged down traded. The way that I trade I cannot let an averaged down traded get away from me. If it goes against me and gets to my “give up SL” because I moved my initial SL then I have to get out. See price can blow through my regular SL and I get taken out with slippage So I am flat and Then blows through my hard “giveup” SL and gets me right back in the market but the correct direction. In a fast moving market this can happen but it isn’t all the time.
 
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& observational threads like Volpri's esp. rare


[ observation ]
 
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Just wanted to point out , that one of the most important asset that Volpri has earned is : He know exactly what type of trader he is and he is comfortable with it and loves it. He is a scalper and he is sticking with it. He knows what to do per trade.

I feel that is important to point out cause know who we are definetly helps on the confidence side
 
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