Jack says that it is critically important to be able to do "wash" trades. Lets discuss wash trades here.
No problem Chicken Parts. Wash trades are very important. To the extent that one develops their entry and exit skills, what used to be losers can be turned into wash trades. As regards Jack's System it is a matter of following directions. For myself, I use the ES as my reference during the entry process. I like to see price "confirm" my (long) Russell entry by moving up briskly. If it doesn't I roll out of my position before it becomes a loser. It is one example of how to use a reference index. Good luck Steve
it is a way of making your broker rich by making 40 useless trades per day everytime a trade goes against you by one single bad bad tick.
Exactly! The important part is picking the correct entry points. If youre entries are consistently bad there is little hope of washing. Next question of course is where are the correct entries? That only comes with lots of screen time. You must learn to gauge when you have momentum on your side at least temporarily. p.s. the three out of four is a personal statistic. I have no idea how others do. I am pretty jumpy so I tend to exit a lot. I also reenter a lot.
I don't care about my brokers wealth, only my own. Although you may scoff at such a suggestion, it may enlighten you to look back at your detailed records that you keep, and see the difference in equity had you cut every trade as a scratch unless it zoomed off your way from the get-go. I have, and I was quite surprised.
Not for me. I cannot make head nor tails out of time and sales. (that rhymes). To me the best indicator in the world is that little flapper on the close side of the 5 minute bar. How fast it is twitching back and forth, how long is it sitting on the bid or ask and which way its moving. That along with volume is mostly what I watch but also very important is the "formation" of the preceding price action. Rockets usually occur at the same breakout locations everyone else is looking at. What separates the winners from the losers is the ability to see the breakout is failing and get out quickly.
yes - i did too. do you enter limit or mkt.? market order brings you down 1 tick right away - then what? after the market goes against you one more tick - get out immediately? so - how can ANYBODY enter the market consistently at the absolute high or low of a specific move- and do this 20 to 40 times per day every day? excuse me, but are you naive or just stupid? did you ever even WATCH a futures market in real time? somtimes this to me is similar like one would come up and tell me that he is going to win every single formula 1 race for the next ten years - absolutely every race - because theoretically it is possible and so when one does everything right - then it has to work. has it happened before - no. will it ever happen - 99,999999999999% no.
Difficult to follow this chicken... It jumps around (generates new threads) like a headless chicken (no offense intended). I agree that wash trades are very useful in minimizing your trading system's risk, and obviously you'll have to pay for this. Don't worry about the money your broker is making if you're making money too. Look at how your expectancy goes up when your wash trades are done correctly.
Wash trades work nicely when used as part of a momentum trading system. Entering on momentum allows you to get out with a wash or at a small cost when your entry was triggered by a fake signal. In my experience, only market, stop market, contingent market orders work with momentum entries and exits.