But what if one can stand losing 4 ticks? Then trading with 1/4 is as if one were to be standing 1 tick with regular size?
I get the feeling that you haven't read these threads. Start with the first post and the seventh and go from there.
Ditto my previous post. It isn't about ticks; it's about exiting the trade when it's wrong. If you're interested in this, I suggest you read the first thirteen posts in the "Son" thread.
Okay, thanks for the input. This discussion has been helpful. This chart is quite old, and my lines are a lot more accurate presently. It's difficult to say, but I think I would probably long at 99 given the chance if I were presented with the same situation real time with my present understanding. However, I probably would've exited that one around 20 for a B/E trade, not much different from the first time. My squeamishness at the time which caused me to wait until the break of the red line formed at ~8:50 chart time ended up making things a bit more difficult than they had to be. I agree that a long at the first sign of power shift with the intent to exit sooner rather than later if the red line rebuffs buyers again would definitely be the smarter way to play it. This discussion has answered my question though. I have been trying to reduce the loss % beyond what is practical or helpful to do in order to avoid "failure". With a clear understanding of price action, there is nothing to be afraid of in regards to earlier entries and reacting accordingly to the unfolding circumstances, whatever they may be. This conversation has been very useful in pointing me towards the next adjustment that I need to make. The journey continues...
Try not to extend the lines once they are rotated and see if it helps. Besides, once you stop drawing lines (and you do it in your head) those ''lines'' won't be easily imaginable.
I believe what Gringo mentioned here is pretty essential. First, if the trade is there - and maybe also within the right context - one has to take it. Specially within the active hours there might not be another entry opportunity as well. Second, and that is really king for me is the process of gaining the ability to cut the trade with a loss one can stomach easily. 1.5 points is really a good benchmark here. If it goes against you it most of the time does not do it rushing through at once. It goes against you, then retraces a bit. And if your decide that it might be cheaper to reenter if the facts are changing again, you can get out even with less ticks. The thing is - as DB has said in the other threads - one has to stay active and don't just let the market take out the stop order. Then there is nothing to stop you from implementing that "positive expectancy thinking", which I believe enables a lot more than the ability of taking trades. I reduces the stress factor and leads and maybe leaves this discipline stuff just a topic for the various trading psychology threads. Being in this process myself, I saw the effects yesterday where I had my best day so far - with 4 winners and 3 losers... Btw, thanks DB for the great posts about supply and demand - very good how you pinpoint the basics.
It's been over a year since we flirted with the top of this trend channel and it took six days for buyers to yield. So don't be lulled into complacency. Stay on your toes.
So, buyers couldn´t take prices higher just at the place the oracle told us, and now we are out of the TC and looks like we are eager to keep on going down. I still see some trouble ahead for bears and my point of interest 10 minutes from the open is 68 where buyers have been showing up to kill the bears party since last friday.
Did anyone find an entry opp before 9:40?. I was thinking 72.75 at 9:39 but was not sure so I did not take it.