Tight Stops

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I just came back and deleted my post. I do not want to abuse anyone who sincerely thinks that 6 ticks is the "secret". I know your money is just as valuable to you as it is to me. Good luck.

DB:
I think you are right. People have their own motivations. We cannot understand what is in the hearts of our fellow men (and women). You just have to move forward and do the best you can.

I do get a kick though from some of the posts that came through last night. There isn't much instructional value, but sometimes it really does beat cable TV as entertainment. :D
 
Quote from WaveTrader2004:
My approach is it either starts winning straight away or you cut it.
. [/B]
More...

I had 7 trades Friday. 2 winners and 5 losers but I was net profitable. You can always reenter a trade.
 
6 Ticks is absolutely the largest ES stop you should ever need. If you get stopped out too frequently then you're not entering at the right place. On tight, range bound days, you can sometimes get away with even tighter stops.

Now, choosing the right spots to enter is altogether another matter. If you insist on studying price based indicators to get you in and out then you're gonna get whipped around no matter what you do.
 
"how much do you charge this week Mr Gilmore"

I didn't come in here with the intention of looking for customers. If you can't take a bit of free advice without being so skeptical and if you don't understand how professional floor traders make their money you are entitle to have any view you like your money is just as good as anyones when it comes from the market fair and square.
 
They don't make it with 6 tick stops. Someone isn't doing the math. If pullbacks average 2 to 2.5 points, with a 6 tick stop you are getting stopped out at these places. HELLO.....Look, stop size relates to the type of trade. As you move out on the temporal horizon, you have to have a bigger stop or you will not overcome expenses. This is basic. No controversy on this point. As to the idea that a particular entry will fix that problem, sorry no sale. It is very unlikely that anyone will be able to find an entry technique that insures that a trade will move positive immediately. This is especially true in a noisy market like the ES. This means that no matter how good you are, a percentage of your entries are going negative right away. OK, thats my good deed for the day. Good luck and please do continue with your "secret" stop strategy on Monday. Lefty.
 
WaveTrader - I actually agree with you for the most part - use 5 ticks on my bonds.

But you ought to know that any helpfull information here will get you beaten down and tossed out (for the most part).

Thanks for your insight, Chris
 
Markets differ. I am talking about a market I know and have traded for years. I am glad it works in Bonds. By the way, you miss the point, If I want to be abusive, I can go outside and step on ants. I prefer that traders think for a moment, maybe take a minute to look at the charts and do the math. At the current volatility levels, I start the day with 2.5pt stops and adjust during the day as volatility changes. I have already done the testing and hope to keep some folks from losing their asses in the market. I have no idea why however:p
 
Lefty, go and study any trending day and Friday was one for the best part.
Once the market establishes a trend and the first correction is established that becomes the benchmark for the trend whilst it is in progress. Professionals will buy the dips when they reach anywhere near 1:1 and that is called buying weakness. Another thing 1177 on Friday was an old resistance and it couldn't halt the market - ES couldn't even correct the 2.5 as the DJ and the OEX component of the market was holding up. But there are more factors involved to trading professionally than just taking a position on blind hope as you have to manage your trades and not just sit in the market and hope for the best.

DblArrow
Your point is a good one - most people don't want to learn and for the most part hang around chat rooms because they have nothing better to do. But the truth is 90% of people lose money trading futures and there are clear reasons why.
 
All the serious professional ES traders I know chuckle at the folks who use 8T stops and the like in today's low-range market.

I won't go in on this, but thank you noobs and moving-average-crossover-traders for your donations. You know who you are.

S
 
Unfortunately, beginners read this stuff and think that wide stops are going to take care of all their other problems. They they disappear and there are fewer people giving away their money . . . :(
 
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