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

[SimpleMeLike]

Hello volpri,

I hope you enjoying your vacation and the all the good tasting crawfish. I live near Louisiana, so my entire family loves crawfish, weekly. Lol

Question for you.

Can you share some comments or opinions on the concept of "Cutting Losses, before price hits stop loss"

Recently in my trading, I use to set my stop loss and profit target and let either get hit. I scalp, so my reward is less than risk 100% of the time. So I started noticing some challenges when taking those 2 or 3 losses in a roll. Difficult to come back from .

So I started being more watchful of price and cutting losses before my stop loss is hit. I am still working with to measure the outcome.

In your trading, are constantly cutting your loss, although you average in alot as well.

 

[rhk]

just discovered this thread... Looks really good.
Volpiri, is most of what you discuss, in regards to methodology, setups, tactics from Al Brooks ?
Asking because your ideas resonate with me. If they are also Al Brooks , I'll get into his books.

The idea of averaging into positions both with the trend (leveraging) and also averaging into a position as the mkt goes against you.... is intriguing.
I can see how averaging down into a position can help to give a high ratio of wins to loses...AND/BUT.... the times it does not work ,I'd think the losses would be large.

In your post #105 u averaged down into 40 contracts suffering $13,000 in drawdown before getting out at a profit of $11,000ish....... jeepers creepers, I thought, rather u than me..!

I'm thinking that one must be "playing at a high level" to be able to do this .
So easy to make a mistake...which that post was talking about..

Anyway... Love this thread.... many tks.

 

[rhk]

You are not your thoughts and your emotions. Both are fleeting. They appear and disappear as quickly as they came, but you remain. Nor can you control them for any enduring time. They appear upon your consciousness at will like like clouds upon a clear blue sky only to quickly be replaced by subsequent ones. You cannot stop your mind from creating thoughts. Whether true thoughts or false thoughts but you can mitigate the damage they can do to your trading and other areas of life. You must learn to separate yourself from your thoughts and emotions. They are not you. They appears as clouds and quickly dissipate. Learn to just observe them and not let them encapsulate you and form you into their mold. As traders we need to detach ourselves.

Thats pretty profound... Are u able to share how/where you came up with this realization?

Any suggestions for separating enough from that "voice in the head", to be able to witness it ...as clouds upon a clear sky... and be able to handle it.

I'm not taking the piss.
This is a really serious question on my part..

 

[volpri]

Thats pretty profound... Are u able to share how/where you came up with this realization?

Any suggestions for separating enough from that "voice in the head", to be able to witness it ...as clouds upon a clear sky... and be able to handle it.

I'm not taking the piss.
This is a really serious question on my part..

Paradigm Shift by Yvan Byeajee and other works of his did a lot to open my understanding of the mind and how it can affect our trading….MUCH MORE THAN WHAT WE THINK! LOL…..along with reading about concepts of mindfulness from other authors. Check out Yvan on amazon. I think he has combined some of his books into one. You might can still find them separate.

 

[volpri]

Hello volpri,

I hope you enjoying your vacation and the all the good tasting crawfish. I live near Louisiana, so my entire family loves crawfish, weekly. Lol

Question for you.

Can you share some comments or opinions on the concept of "Cutting Losses, before price hits stop loss"

Recently in my trading, I use to set my stop loss and profit target and let either get hit. I scalp, so my reward is less than risk 100% of the time. So I started noticing some challenges when taking those 2 or 3 losses in a roll. Difficult to come back from .

So I started being more watchful of price and cutting losses before my stop loss is hit. I am still working with to measure the outcome.

In your trading, are constantly cutting your loss, although you average in alot as well.

I often speak of two concepts:

1) Market cycle or phase. (i.e. RANGE…BO in form of spike….channel….then range and all repeats.

2) Market dynamics. That is, the “how” price moves within the different cycles that it is found to be in. Was it slow or fast. Docile or volatile.

Both of the above influence as to where I will move my SL in either direction i.e. tighter or wider. And if I will jettison early before my SL is hit then double up and reverse.

There is an old saying “never sell (short) a dull market in a strong bull trend”

I would ask is that strong bull trend in a weak or strong channel or is it in a trading range context? Or is it located in a strong BO? Those kind of questions help me decide if I will “hold” my initial SL or move it. Or even if I will will dump the position before my SL is hit. Or if I will average down by adding to my position n adverse movement and adjust my SL.

 

[volpri]

just discovered this thread... Looks really good.
Volpiri, is most of what you discuss, in regards to methodology, setups, tactics from Al Brooks ?
Asking because your ideas resonate with me. If they are also Al Brooks , I'll get into his books.

The idea of averaging into positions both with the trend (leveraging) and also averaging into a position as the mkt goes against you.... is intriguing.
I can see how averaging down into a position can help to give a high ratio of wins to loses...AND/BUT.... the times it does not work ,I'd think the losses would be large.

In your post #105 u averaged down into 40 contracts suffering $13,000 in drawdown before getting out at a profit of $11,000ish....... jeepers creepers, I thought, rather u than me..!

I'm thinking that one must be "playing at a high level" to be able to do this .
So easy to make a mistake...which that post was talking about..

Anyway... Love this thread.... many tks.

Thanks. I hope it is helpful in some way.

 

[volpri]

Couldn’t make it to the Pioneer Museum in Alabama. Opted instead for 6 Flags Over Georgia. Here I am with some of the grandkids riding high. Kinda like swing trading. Swinging the ride up. Then drop down for PB’s then continuation of the trend back up. Next photo grandkids heading to the top for a great fall. Strong Bear BO on the way down! I’m getting too old for the wild rides.

Goliath is a huge roller coaster. Not sure I got the nerves to go on it. Kinda of like trading. UP…Down….Down…up twisting around…time you think it is bout over over then another great move….might get up the nerve for the Georgia Scorcher roller coaster. Or maybe I should just try to find a merry go around?

 

[speedo]

Paradigm Shift by Yvan Byeajee and other works of his did a lot to open my understanding of the mind and how it can affect our trading….MUCH MORE THAN WHAT WE THINK! LOL…..along with reading about concepts of mindfulness from other authors. Check out Yvan on amazon. I think he has combined some of his books into one. You might can still find them separate.

Yep, read it, guy tells it like it is.

 

[volpri]

Did the four roller coasters: Grandkids putting pressure on me …telling me not so bad and how they enjoyed it..etc. I relented and climbed aboard. It was a bit for 66 year old but you know gotta keep those grandkids smiling and laughing. Rode the Georgia Scorcher, the Mind Train, The Blue Hawk, The Goliath. After the Goliath I told them they lied about that one. They talked like it was a piece of cake and talked me and the wife into riding it. . They were laughing so hard. Oh well. You only live once. Might as well enjoy life and give some folks some laughs.

 

[volpri]

The Blue Hawk turns you upside down 5 times plus all the twists and turns. A rough ride. The screaming starts early on! Here I am with my some of grandkids in 4th and 5th car from the left waving. As we are starting the roller coast ride. Full of confidence but also apprehension. Kinda like trading when one is starting the trading adventure! The confidence seems to dissipate rather quickly!