Trading Daily & 4 Hour Charts Using Extremely Simplified Money Management Technique

G-Boa · May 23, 2008

Quote from JSSPMK:

TY for comments Opt!

It's not that I didn't want to listen to you last time around, I just traded my pattern, I am open to all sorts of critique/opinions, obviously I was wrong then & you happened to be spot on

As far as 10 YM point being too small trading a long term chart I can justify it by saying any large oscillation generated by a longer term chart has multiple price levels that are breached once or multiple times and after that price moves away from these zones to get to another zone, which on daily chart is far beyond the 10 point risk, if that makes sense.

so if you're stopped out 5 times in a row at 10-pt stop, you are looking to catch that 6th, or whatever, time and ride it to exit?? on that 1 contract, how many points do you expect your target to be??

JSSPMK · May 23, 2008

Quote from jagmot:

agreed, I would think about using at least 50 on the YM, still 40 trades if you got stopped out on each one.

And I say, why wait till 50p stop, when you can get out @-10

, there is no such thing as an adequate amount stop per specific instrument, you either use amount based on far away support & resistance zones or you reduce them down to support & resistance zones taken from the time frame you are basing your trade on.

JSSPMK · May 23, 2008

Quote from G-Boa:

so if you're stopped out 5 times in a row at 10-pt stop, you are looking to catch that 6th, or whatever, time and ride it to exit?? on that 1 contract, how many points do you expect your target to be??

Correct, as long as pattern is still valid I will stubbornly continue to trade same level and get stopped out for -10.

A minimum of x10 the risk per 1 trade ie 100points, but I will try & get closer to 300 points YM, I think that is reasonable amount

I believe I will come out b/e at the very least, like in Black Jack when played by the safe rules

JSSPMK · May 23, 2008

Quote from osorico:

Not sure I understand your concept, but you are spot on, and one of the few around these here parts, that understands instruments move into and away from price levels. Hats off!

That said, I agree with opt. There is a first time for everything.

Osorico

Appreciate the comments Osorico, TY!

Concept is wrapped round a wonderful word - simplicity

G-Boa · May 23, 2008

Quote from JSSPMK:

Correct, as long as pattern is still valid I will stubbornly continue to trade same level and get stopped out for -10.

A minimum of x10 the risk per 1 trade ie 100points, but I will try & get closer to 300 points YM, I think that is reasonable amount

I believe I will cone out b/e at the very least, like in Black Jack when played by the safe rules

reminds me of the quote: "90% of my profits come from 10% of my trades".

good luck, it'll be nice to follow along this thread.

JSSPMK · May 23, 2008

There will be no scaling out of trades, because there is just 1 lot. So please don't advise me to scale out

jagmot · May 23, 2008

Quote from JSSPMK:

And I say, why wait till 50p stop, when you can get out @-10 , there is no such thing as an adequate amount stop per specific instrument, you either use amount based on far away support & resistance zones or you reduce them down to support & resistance zones taken from the time frame you are basing your trade on.

true, just think 10pts is noise and 50pts gets you out of the noise. perhaps i will trade it with you using 50 (if thats cool w/ you).

JSSPMK · May 23, 2008

And here is the beef, I might not be able to post in real-time, I will however post the very first entry in real-time. I don't feel there is the need to post in real-time as all stops are mechanical in nature, strictly -10 points, but I will however post all trades with slippage & commision breakdowns.

JSSPMK · May 23, 2008

Quote from jagmot:

true, just think 10pts is noise and 50pts gets you out of the noise. perhaps i will trade it with you using 50 (if thats cool w/ you).

If you are OK with risks involved, I can't stop you from doing whatever you want to do, I assume you are an adult.

NONE OF THESE TRADES TO BE TREATED AS RECOMMENDATIONS TO ENTER INTO A TRADE/S. THIS IS FOR INFORMATION PURPOSES ONLY.

50 points can be within noise just as 10 points can be or even 100 points

opt789 · May 23, 2008

Quote from JSSPMK:

TY for comments Opt!

you happened to be spot on

After two decades it has been known to happen occasionally.

I think I see where you are trying to go with this, and once you actually start trading then some of our questions, and yours as well, should be answered. I would wish you luck, but your talent and hard work should make that an irrelevant concept.