YM Traders

http://img241.imageshack.us/img241/6193/snapshot75xd.png

Not the YM this time, but just to show you that support and resistance is important on all vehicles of trading, Forex... Equities, it's all the same.



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BTW,
Volente, if you feel I'm kinda taking away from the original idea of this thread, let me know, I have no problem with starting a new one, I just wanted to try and explain the fact that resistance and support is an important tool of trading, and you realize this, and I have recently realized this, and hope others can learn that it can be just as simple as 2 lines... or you can complicate it with tons of indicators.

But yes, I agree, Porgie just seems to stir things up for no reason. I don't know why anyone would waste their time even trying to screw with people on a forum.

I just want to try and help out others, and Volente you do an amazing job of trading.

I almost forgot that this is your thread.

I know people like posting P&L, so if that is the case, there I have no problem starting a new thread... I just sotra got into a flow with trying to help.
 
Quote from volente_00:

Jm,

how did you find your mentor ?
I like you charts, one thing that helped me in trading Ym was understanding that the majority of the time the DOW works in 20 point increments and support and resistance more often than not ends up at levels that divide by 20 evenly. Here is what I am talking about.


http://finance.yahoo.com/q/bc?s=^DJI&t=1d&l=on&z=m&q=l&c=
More...

My mentor found me. I got a message from him on MSN Messenger, and he has since been one of the greatest helps to me with trading and I couldn't ask for anything more.


About the increments in price.
Yeah my mentor explained that too me as well just recently. It make sense. People like 0's. So that is where support and resistance will tend to be.

Most of my lines are either on a number ending in a 0, or ending in a 5.
YM seems to like support and resistance at the 0's though in increments of 10.



Just curious what you use for charts Volente?
 
I use Trademavens charting. As far as topic, I titled this thread YM traders, if you fit in this category then feel free to post anything related to ym trading. What does you mentor say about stops and what size ? My 20 point stop is based on what we just talked about.
 
Quote from volente_00:

I use Trademavens charting. As far as topic, I titled this thread YM traders, if you fit in this category then feel free to post anything related to ym trading. What does you mentor say about stops and what size ? My 20 point stop is based on what we just talked about.
More...

I actually enjoy using TradeMaven... I will either use that or CQG as my trading platform, but I like TradeMavens ability to resize windows and such. The charts are okay, but I enjoy eSignal's.

My mentor usually stressed to have tight stops to minimize getting screwed on a breakout or breakdown on support or resistance.

But since I really only trade at those areas, that is the reason why.

Now I can understand your strategy as well. Because even though support and resistance are good, they do have a widespread area where they can influence. The maximum I have ever set is a 10 point stop loss.

Thing is, if I execute a trade, I am going to try and make sure it will bounce of Support or resistance, if it does bounce off, then the tight stop should not be hit. But if it does, then I'll wait to confirm that it will be a breakout. And then I'll wait for it to hit the next area of support or resistance, or it will just be a false break, and then trade that. There are a few times on my charts where it does go past support, but I was already short on those, and I took profit, and it slowly pushed to go back above the original support, so it's good stuff.


But as for stops, I'd say I can vary them between 3-10 points.... but I do understand your strategy of 20 point stop loss.

I don't think my mentor would be happy with a 20 point stop loss, but I can understand situations in which it will be beneficial. But with my small account, I can't afford to take that just yet. But during the trading day, even if the stop did get hit, it should easily be made up from successful trades.


Do you trade a lot during the day... like in between major support or resistance, or just wait for more certain trades. I do the latter.
 
I like the way you trade, both of you Volente and JMo.
Simple entry/exit points based on SR, logical stops. No overload of useless indicators no impulsive decision based on price action...
hope the best...you may go a long way.

Piero
 
Quote from Bitstream:

I like the way you trade, both of you Volente and JMo.
Simple entry/exit points based on SR, logical stops. No overload of useless indicators no impulsive decision based on price action...
hope the best...you may go a long way.

Piero
More...

I hope to go a long way... I'm very fortunate and very greatful to be in the position I am. I don't have much money but understand the markets very well. Again, I hope everyone that is new to trading and really deserves and puts in the effor to learn can experience trading along side a great trader.

I hope I get well enough to help new traders in the future.

I'm already testing trying to do it now. Just makes me feel bad to see all these new traders struggling to find easy ways to locate good trades, or getting ripped of buying systems. Although I don't think a good trader would attempt that. But anyways. My eyes were recently opened to this way of trading, and it again has made me very happy to realize how important support and resistance truly are.
 
When using these 3-10 point stops, how many points are you trying to capture ? You mentioned 1 min charts, Are you mainly scalping ? What is you first intial profit target as far as number of points ?

Where is your safety margin when joe blow's program trade kicks in and all the other shorts follow and cover and run it up 10 to 12 points before the sell programs fire off and sell into strength and drop it 20 ?
 
Quote from volente_00:

When using these 3-10 point stops, how many points are you trying to capture ? You mentioned 1 min charts, Are you mainly scalping ? What is you first intial profit target as far as number of points ?

Where is your safety margin when joe blow's program trade kicks in and all the other shorts follow and cover and run it up 10 to 12 points before the sell programs fire off and sell into strength and drop it 20 ?
More...

I'm more of a hyrbid of descretional trader and system trader. I am working on rules for myself, but don't want to set too many rules that I feel limited.

I do not scalp... simply because I have not had the opprotunity to try scalping. Maybe in the future, but for right now, especially with school, I'll stick to more of a regular trading style, until I have the ability to experiment more freely.
But with a lot of the trades I recognize, I can say I could be happy with executing 2 trades a day on average, maybe even only one. I have not tried a form of a more aggressive tradins style, but again, the future is an area for exploration, and I look forward to it after I graduate.


Now, I gererally aim for a 1:3 risk vs. reward ratio, or much more. If a trade isn't good enough for that, then i'd say it wasn't worth it. I generally set a profit taking order right below or above an area of support or resistance, depending if I am short or long. I'd sell half my positions. If I can see it might breakout, I'll hold onto the other half. If not, I lose a bit of the profit I could have had, but it's still fine.


Now Volente, you are completely right. I would have trouble if the price recessed more than 10 points, and then continued down, that is why I try to understand who is in control at all points, like you do too. It's not perfect, but i'm only 18 and have been trading for 4 months. So try and understand I'm still learning.

I feel I have gotten very far, and I know you are more successful in trading than I am.

Like I said, I understand your 20 point stop loss, that was the exact situations I was referring too. But I'm more of a cautious trader. I have no porblem with taking profits early. I will with time learn more tricks, and your system is completely understandable, and when i can try it, I'd love to give it a whirl. I know you are a good trader and respect you just as I do my mentor.

So, you do have good points in your post.
 
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