The Evolution of an E-mini Trader

This is the aspect of trading, that I believe is more art than science...Another person on a similar thread stated that he made the majority of profits from his "runners"(i.e. the free trades after you have covered your costs on partialling out on first contracts)...I think that is absolutely true...While the drawdowns, at first, will be an eye opener when you are wrong with 3-5 lots, the upside is magnified as well because you can scale out of your position as teh market moves your way, trail your stops and pick up some bigger moves...With 1 lots, you need near perfection in each aspect of the trade...You have to enter perfectly, cause you are not giving yourself teh opportunity to add to a position and scale in, you have to exit perfectly and estimate the exact inflection point in the short term...sometimes you catch the exact bottom, but most of the time you cover on the first signs of strength counter-trend...then the market breaks your way for another 3,4,5,10 handles and you are on the sidelines...or worse yet, you enter, market runs 2 handles against you, stops you out, reverses and runs to your original target...the more contracts you can trade, the more flexibility you have...the better you can scale out and scale in, average in, adjust and scratch losing trades, maximize winners, etc...

Personally, I still struggle with adding to winning positions...typically I just accumulate a position inside a certain range and then start scaling out if it goes my way...if it goes against me I reduce the exposure and then try to cover the remainder near break even...it is tricky, like all aspects of trading...
 
To everyone who averages down. Good Luck, you'll need it. I can't understand people trading that way it sounds very stressful to me. As the comments have said only for very experienced traders. I just hope no beginners pick up on this system and try it. They'll fall into the 90% basket of losers very quickly. IMHO

Maybe traders with huge banks behind them or even traders that don't work for themselves would be happy doing it that way.

Not this trader............ He'll stick to the less stressful way(aahh small losses, good profits, don't you just love it)

Huios,

Did you read my other post about your trades and how they may have turned out on a 5min chart. Just something for you 2 think about.

Regards
 
Yes Dizzy, I did. I am looking at the 5 minute more and more. This is something new in my trading that wasn't there last week.

Ain't learning cool!!!!

Btw, didn't I pick a great time to learn how to trade? I remember way back in early June, when the market was trading in the 1050's. Siggghhhhh

:D

Gerry, I saw there are a few meetings today, and some Fed thing at 2:15.:)
 
Wild market for me today. Got my head handed to me because I was too emotional, too excited today. Chased 3 trades for a total of -2.25 pts. Exited early on 5, unrealized gains, too much to think about. Bought or Sold (to my detriment) w/i .50 pt of the high/low tick, 8 times. Overtraded. Let my loses run and cut my winners.

Greed and Fear ruled me today.

Trade 1 - chase. +.25

Trade 2 - right direction, exited on low tick. -2.0

Trade 3 - almost a chase. +1.75

Figured a double top was in.

Trade 4 - sold low tick. out -1.25

Trade 5 - shaken on low tick -.75

Trade 6 - shaken on high tick +.25

Trade 7 - shaken on high tick, could have had a little more, but not much. +1.5
 

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Got killed here. Big losses thinking the market is gonna come back.

Trade 8 -missed my entry at 961 and change, so kinda chased this one too, and held on too long. -2.25

Trade 9 - held on way to long. -4.0 (second biggest loss to date)

Trade 10 - got in on a hesitation, but the wad had already been blown. +.50

Trade 11 - frustration trade, shaken out near high of retracement. -1.75

11 trades, 6 losers, 5 winners

Net for the day: -440.05

Net for the week: -476.55

Net for the month: -452.85
 

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Now, this is really cool.

The daily range chart has been temporarily retired. I'm tired of looking at it. If the crowd clamors for it, I'll bring it back!

Instead of doing the daily range, I did something for the first time today. I took my one minute charts with my trades on it, and changed it to a 5 minute chart. What an eye opener!!!!!

So this is what you guys are talking about when you are saying the one minute has too much noise. What a difference!!!!

I'm still digesting this, so no real comments. I'll post the chart, and let it speak for itself.
 

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I guess this was do to the fast market, but my charts were as much as 2 points different/lagging than my quotes at certain times today, at least one point many times today.

eSignal for chart feed, and IB for quotes. Others were saying they had lagging problems too.

(hey, just noticed I'm a senior member):)
 
Huios,

I had a couple of trades today, one which was similar to your trade 7. I hope the 5min chart helps you in your trading. One thing about this business, the learning never stops. I have attached a 5min chart with 3 points on it.

1) A buy at the breakout of the morning high. The trend was up at that point and we had a ascending triangle forming. The trade then closed the gap.

2) A sell at the breakout of the morning support. A 2bar reversal when the gap closed then a lower high.

3) A sell after a .382ret and a break again of the same support after another lower high. Trend was now down.

These trades were all achieved with close stops. I enjoy reading your journal Huios. I think basically we have similar trading styles.
2 things I always try to remember are a) keep it simple 2) don't overtrade. Look for the better setups.

Another thing you may want to keep in mind is the market gets very volatile around Fed announcements. It is better to stay out at these times I think. Close stops get blown apart. 2 of your trades, numbers 8 and 9 happened during this period and I think they were the biggest losses.

Anyway just wanted to add my thoughts. Tell me if your not interested and I'll stop.
 

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