Trading the Pivots

Quote from JimmyJam:

Dude, the market looks like it's going to hold right here, so I'm going to make this short and sweet for you while I get ready to catch this reversal.

Nope I don't believe in any set paradigm, I believe in doing what makes money ... period.

If I can catch a good trade off of the Floor Pivots three days a week (I'll keep them on my spreadsheet) and use them as a reference for potential market action - but I'm not going to rely on them as my primary decision making tool when entering trades.

I am soooo not doing this for the vast majority of ET'ers, click through rates, somebody else's marginability, etc. I'm doing it to experiment with Floor Pivots, and anything else that I (or the reader) can LEARN along the way that helps our trading is A VERY GOOD THING. Your arguments are specious at best, and actually are bordering on being pretty silly at this point. My mini trading had an amazing click rate, and most of the viewers were simply downloading his PnL statements :confused: . You even made comment on this fact ...

I'm tired of explaining the process of experimentation to "traders" who constantly question it, (experimentation, nah, that couldn't be a good idea ...), here, keeping in this vein, let me give you an example of why using an experimental process would be good a thing.
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Entering a trade that is moving against your position, legging in as it were, while experiencing drawdown, despite what your technical analysis shows as being good Support/Resistance areas, the trade continues to move against your position. Now either due to the pain of sustaining the loss OR due to some piece of new item which flashes across your screen/bloomberg/trading news channel that you are watching while trading, you decide to exit the position at a loss - [THIS IS FEAR IN ACTION], only to see the market REBOUND! [THIS IS GREED IN ACTION - THESE ARE ONLY TWO FACTORS IN THEMARKET THAT REALLY MATTER ... FEAR AND GREED] in a dramatic fashion shortly after you closed your position.

That would be a VERY GOOD experiment teaching me to never ever do that again!

Oh, man, support didn't hold and my SHORTS are coming in.

See ya!

JJ
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This is Porgie talk, I really haven't got a clue WTF you are on about. It seems that you are sitting on a crystal ball or something knowing WHEN price is going to reverse, like Porgie you keep going on about some proprietary trading system, like hell I say, this J is all you got - YoYo, try a bit of this, try a bit of that.
 
Quote from romik:

This is Porgie talk, I really haven't got a clue WTF you are on about. It seems that you are sitting on a crystal ball or something knowing WHEN price is going to reverse, like Porgie you keep going on about some proprietary trading system, like hell I say, this J is all you got - YoYo, try a bit of this, try a bit of that.
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And I personally think that you should stop being afraid of making live calls in your name and not in some system that if failure rate is high or break-even, nothing to worry about as it's the system's trades, not my proprietary stuff LMAO.
 
hey romik,

thank you for supplying us with more guidelines of what a good trader doesn't do

these examples are best illustrated in a story format, as follows:
***
opening shot: romik comes out of his office after another hard day of "trading", greeted by mrs romik

mrs romik: "oh hi honey, how was your day?"
romik: "it was great! I blogged for hours on ET, called a lot of trades, explained the finer points of averaging down, which is where you put more money in as the price moves against you, so that when it comes back your way, it doesn't have to come back as much for you to make more money! … oh yeah, I told this guy off too, he was trying to tell me to stop blogging so much, stop calling my live trades and concentrate on my trading. But he doesn't know what he is talking about!, hahahah ROTFLMAOLOL"

mrs romik: [waiting patiently for him to recover] "that averaging down doesn't sound too good, it sounds like throwing good money after bad"
romik: "well, yeah but I have a technique for measuring price levels and divergences and I read charts" [he says], drawing an inverted Y with a line underneath it and a second line bisecting the first one at a 45 degree angle on a piece of paper to illustrate what he is talking about …"

mrs romik: [looking kinda dubious] "okay, how much money did you make?"
romik: silence "… well, I only lost $500 dollars this time"

mrs romik: "$500 dollars, is that on top of the $10,000 dollars you already lost?"
romik: [sheepishly] "yeah" and then quickly "but if I had held onto the trade, it would have made $2,500!"

mrs romik: "well why didn't you hold it"?
romik: "well the news channel was really bad, and since I don't have an edge with my trading, I didn't have any confidence in my system. So I closed the trade at a small loss"

mrs romik: "but I thought traders made trades so they could make money"
romik: [stubbornly,] "a trader takes his trades" … but don't worry about it, I can make it back with my 2 pts trades, and if they don't work, I can always martingale into the next one"

mrs romik: "and what, pray tell, is a martingale?"
romik: it's where I double the number of contracts traded for every loss I take

mrs romik: looks at him in disbelief, then turns on her heel and goes into the next room
romik: quickly walking behind her " well yeah, but my thread is doing really well, I have a high hit rate and most ET'ers need low margin systems to take their trades" [thinking to himself] "(but come to think of it, I don't know why they would want to listen to me, considering the way I like to take a hit)", and my divergence system does that, but I don't trade divergence anymore and …"

camera fades, with mrs romik going into the living room to turn on the TV, while romik reaches into his drawer to pull-out his check book …

http://www.gamblersanonymous.org.uk/

Bye for now,

JJ
 
R1 - 1338
PP - 1332
S1 - 1324
***
Price action is current below the previous day's Open and Close, but at the same time above first Support.

If it holds I expect the market to move up to at least the Median Pivot (1332).

First Level of resistance corresponds with the Previous Day's Open (1338).

Best Regards,

Jimmy Jam
 

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If you go back and look properly, you will see a short trade full position size being present while the long was still open, that short gained +3 points and has offset the loss in the long trade and has put me in profit after closing the long trade, which wasn't closed based on news, you muppet, it was closed as there has been a divergence on the 240 TF and I assumed it started before my estimated 1340. I linked the decline with Thai news only later on. After these 2 trades were closed I was already in the black. Right now I have 18 contracts short averaged just under 1329, half's been covered @ 1322.50 the rest at breakeven or lower. If you do the maths, profit from this trade alone might equal your TC my man. Good luck to you, hope you find what you looking for.


Quote from JimmyJam:

hey romik,

thank you for supplying us with more guidelines of what a good trader doesn't do

these examples are best illustrated in a story format, as follows:
***
opening shot: romik comes out of his office after another hard day of "trading", greeted by mrs romik

mrs romik: "oh hi honey, how was your day?"
romik: "it was great! I blogged for hours on ET, called a lot of trades, explained the finer points of averaging down, which is where you put more money in as the price moves against you, so that when it comes back your way, it doesn't have to come back as much for you to make more money! … oh yeah, I told this guy off too, he was trying to tell me to stop blogging so much, stop calling my live trades and concentrate on my trading. But he doesn't know what he is talking about!, hahahah ROTFLMAOLOL"

mrs romik: [waiting patiently for him to recover] "that averaging down doesn't sound too good, it sounds like throwing good money after bad"
romik: "well, yeah but I have a technique for measuring price levels and divergences and I read charts" [he says], drawing an inverted Y with a line underneath it and a second line bisecting the first one at a 45 degree angle on a piece of paper to illustrate what he is talking about …"

mrs romik: [looking kinda dubious] "okay, how much money did you make?"
romik: silence "… well, I only lost $500 dollars this time"

mrs romik: "$500 dollars, is that on top of the $10,000 dollars you already lost?"
romik: [sheepishly] "yeah" and then quickly "but if I had held onto the trade, it would have made $2,500!"

mrs romik: "well why didn't you hold it"?
romik: "well the news channel was really bad, and since I don't have an edge with my trading, I didn't have any confidence in my system. So I closed the trade at a small loss"

mrs romik: "but I thought traders made trades so they could make money"
romik: [stubbornly,] "a trader takes his trades" … but don't worry about it, I can make it back with my 2 pts trades, and if they don't work, I can always martingale into the next one"

mrs romik: "and what, pray tell, is a martingale?"
romik: it's where I double the number of contracts traded for every loss I take

mrs romik: looks at him in disbelief, then turns on her heel and goes into the next room
romik: quickly walking behind her " well yeah, but my thread is doing really well, I have a high hit rate and most ET'ers need low margin systems to take their trades" [thinking to himself] "(but come to think of it, I don't know why they would want to listen to me, considering the way I like to take a hit)", and my divergence system does that, but I don't trade divergence anymore and …"

camera fades, with mrs romik going into the living room to turn on the TV, while romik reaches into his drawer to pull-out his check book …

http://www.gamblersanonymous.org.uk/

Bye for now,

JJ
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Actually this story of JJ's requires a poll, like who actually has thought it to be funny and who didn't. To be frank, there is a lot of misinformation in that story of yours, non-factual. But I am sure, JJ will re-read and apologize like he always does, no backbone whatsoever.
 
JJ - heads up....1322.00 is a MP level. If we sell through this level with strong volume (initiated selling) then look for a great SHORT at the first retrace back into the 1321.00 to 1322.00 area. :)
 
Quote from 5Pillars:

JJ - heads up....1322.00 is a MP level. If we sell through this level with strong volume (initiated selling) then look for a great SHORT at the first retrace back into the 1321.00 to 1322.00 area. :)
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Yeah, I'm seeing that buyers are very hesitant to commit at this level, while there is strong technical analysis support here, the buy-in isn't coming through the way I honestly, would have anticipated.

This is shown by the enclosed chart I would think (and we have enough time) left in the session that whichever way it breaks will determine the trend for the day. Also I like to monitor the VIX/VXO for my internals, and I just don't see enough fear to warrant selling.

Thanks for the heads-up. :)

Best Regards,

Jimmy Jam
 

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