New E-Mini traders (under 25K traders) trading journal

Looking at the 30 minute chart for the past two weeks I think that most people would agree that the 1226 area was a major S/R area. It bounced off this line 3 times before finally punching through, so you can expect some serious support when you are retracing back down to it.

Just wanted to point out the benefit of looking at it from a higher time-frame.

 

juggernaut: “1226 was a major S/R line and that's very well why it bounced off there at 11:00”

My comment was intended to address your original assertion that 1226 specifically was a “line” or “point” of support and not an “area” as you’ve revised in your recent post.

“the 1226 area was a major S/R area.”

As I stated, the “area” offered substantial support, IMHO, up to about 10 points below the low at that time of 1221 (9:29-9:31 CST).

“It bounced off this line 3 times before finally punching through…”

Again, the general idea has merit but the fact is that the market did not bounce off of the 1226 “line” three times. It stopped at 1226, 1229.5, and 1236. I don’t mention this to nitpick but instead to illustrate the reason why, in my trading, I have found it more profitable to define “areas” or “zones” of S/R and not expect exact lines to often be observed.

Therefore, I disagree with the assertion that the strong thrust upward at 10:01 CST was the consequence of price striking the 1226 “line”. I believe it is somewhat coincidental that we bounced form 1225 at that moment. In my mind, the news that was revealed to be bogus seconds after 10:01 was the spark. Whether we even would have originally had the opportunity to be driven down from the 1245-1236 area (9:16) through the 1226 “line” to 1221 (9:29-9:31) and then subsequently pop up from that area without the news is something we’ll never know.

If you feel that this discussion has dissolved into a case of semantics then I apologize. I was referencing your statement because I agreed with the general idea of your post, but not the specificity. Rereading my original post above, I see that the use of quotations to indicate your words (i.e. major) is obfuscating my intended emphasis. My bad. I’ll be more aware of how I structure my posts in the future.

 

NQ is the Nasdaq 100 contract. Unless you have access to “fast” cash quotes, I would avoid using the NDX or the Composite for short-term signals. The indexes update much to slowly.

What do you mean by "ACCESS TO FAST CASH QUOTES"?

Thanx

 

Aranha: “What do you mean by "ACCESS TO FAST CASH QUOTES"?”

I talked a bit about it in the thread below:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=2076&perpage=6&pagenumber=3

 

tymjr,

Can you please tell me what does TF in "The S/R is based on the TF that I predominately trade off of."

Also in your opinion which instrument is more suitable for novice futures trader: NQ, ES or possibly Euro currency futures?

Thanks a lot.

 

michealday: “Can you please tell me what does TF [mean]?”

I knew I shoulda’ changed that abbreviation. It’s my cryptic way of shortening the words “time frame”. Sorry for the confusion.

“In your opinion which instrument is more suitable for novice futures trader: NQ, ES or possibly Euro currency futures?”

I’m not sure my opinion would mean much to you, as I’ve never traded the Euro futures or any of the currency futures for that matter. I’ve had limited exposure to Forex. Based on my experiences, the currency markets (CAD, JPY, EUR, AUD, etc.) tended to trend nicely on a daily and weekly basis. I’ve never engaged in intraday trading in the cash market or the futures, though.

As a beginner, I traded on the MidAm. The contracts were small and the commissions were high. I learned quite a bit but I didn’t make a hell of a lot of money. I’m hoping that the mini Dow and Bond futures will pick up in volume, so that newer traders can have the same opportunity to learn with lower risk that I was able to benefit from.

 

for a novice currency futures trader i would recommend to study - or even trade - the swiss franc (SF Z1) before you turn to the euro-currency (EC Z1). it mostly moves in tune with the euro but its trading range is narrower ... less risky / rewarding.

for detailed information go to

www.cme.com/products/currency/index.cfm

regards

wild

 

since i watch both - nq and es - i really wonder which one would be better for a newbie mini-trader.

well - one could say it would be "safer" to trade the nq - 1 point is "only" $20 ($50 for es). BUT - i guess it could be better to start with the es - one tick is $12,50 ($10 for the nq) - and the volatility is smaller (this is also the reason why the cme requires only $4.313 initial margin compared to $5.250 for the nq).

it seems that the nq is very popular especially with former nasdaq stocks trader. but i'm really not so sure what is better.

another aspect - the liquidity of the es is even higher than nq's.

what do you think?

 

great question gerry. i have been trading the nq futures almoat a year and i wonder about the answer to that question EVERY trading day whether i win money or lose money that day.

 

great question gerry. i have been trading the nq futures almoat a year and i wonder about the answer to that question EVERY trading day whether i win money or lose money that day.