BK, This is how I average up. Had you added a forth one there, plausible, you would have had the following outcome: Enormous gain on the first. Gigantic gain on the second. Great gain on the third. Small loss on the fourth. Note: I don't recommend this YET unless you are an experienced trader and dominate to perfection what I'm trying to teach here. Nevertheless, this is in my humble opinion the holy grail of money management systems. Hope it helps. Anek
I'm getting multiple private messages on suggested reading material. The way i trade and the way I manage my trades is based on personal trading experience and I don't think I could give credit to anyone out there but myself and my hard work (and my family) for increasing my trading skills. To be honest there is a lot of crap out there. However, if I had to recommend one book, I would highly recommend the following work by Suri Duddella, "Trade Chart Patterns like the Pros". You can get it from surinotes.com, I did. This guy deserves a round of applause. In fact, he posts in ET Forums, he actually sent me a PM the other day asking me if i could review his book on the reviews section and eventhough I have not done that yet (sorry man) I will go ahead and recommend it here. The book has nothing but chart patterns and price action analysis, a great piece of work, terrific. Disclaimer, I'm not related to Suri or get commission from the sales, just anticipating the ET Police Anek
To the Crazy ETers via PM: ..... yes I paid for the book too you skeptical fools. If you guys spent more time trading and doing less detective work your PL would be higher Anek
Slapped like a mule today. I turned +600 into -1565. Around 735AM PST, I ran into a stuck quotes issue, unable to remove cancelled orders kind of messed me up. Became frustrated when I missed out on a nice down move, would have put me over 1000. Continued trying to short the move, but by that time there wasn't much left. Did not take the small profit offered. Then ran into the rally, my confidence was low and frustration high so I did not profit from it. I seem to have difficulty when the trend changes meaningfully intraday.
Anvil, Attached most notable changes of trend. It's imperative that you are able to recognize this in real time. Until you do, you are better off in the simulator because it's a key ingredient of the system. Examine carefully when price starts making new higher highs or new lower lows. Check the end of the day, check how a change of a trend is developing there. Hope it helps and don't give up, takes a while to master this part. In fact everything revolves around this. Anek
Anek, Are you using the 10,000 share bar chart to trade ES? One of the problems I am having is switching back and forth between timeframes, and one chart will show me a clear LL and LH, but on another (let's say shorter) timeframe there might have been a HL in between which throws me off. Stealth, When I first discovered ET (fairly recently) I was quite turned off by the amount of negativity - just plain nastiness - on many of the threads. I now limit myself pretty much to the few and rare positive threads, like this one, and the ES journal. Many of the better professional traders stress the importance of maintaining a positive mental attitude, and provide links to articles and other resources on their websites. Clearly important in all aspects of life, as Tony Robbins would tell you but critically important in the trading profession.
thanks again for the work here Anek! just a great thread for n00bs like me. also, ST, thanks for your examples. yes, i see the similarity to your technique and Anek's. very helpful.
Jaxon, 500 Volume Bars for Aftehours. 10,000 Volume Bars for Market hours. Recently starting with ES so nothing written in stone. One thing you could do is stick to a chart you feel comfortable with then use an anchor chart of say 4x the small one for major S/R + areas of congestion. You can only slice price in so many ways. Anek