himself.. yes that is exactly right. Any time you are taking counter trend trades you have to be very surgical and precise about your entries and exits. You might take a short against an up trend and have 10 YM points in your hand but because you wanted to hold out for 15 points you missed your chance which only lasted about 8 seconds. Now it runs back up 20 points and you get stopped out - 10 points. When I take counter trend scalps i will usually use Bracket Trader with 2 contracts. I will have a pre set target of 5 points on my first contract and 10 points on my second. If the trade seems strong in my favor I can hit the (wider target) button and get a bit more greedy with my runner but I am ready to close the trade quick. Counter trend trades don't have a very high success rate in my opinion. I have pissed away a lot learning to trade them. a really good scalper can get good at them and yes.. you can get lucky and catch a huge reversal on rare occasions but you are better off with the trend. Just my opinion. Happy Trading all
I also trade YM but I make reads and calls of both my YM and ES charts. Usually make the entry when they are in harmony. For whatever reason I just have more success trading YM so I've stuck with it. I have some theories as to why this is. But for now rather then explore the reasons I choose to trade for $$$. I'd love to talk with other YM traders. I just love em!
I really like YM precisely because it is THINLY TRADED. In ES a lot of times you do not get a fill even after your limit price has traded several hundred lots. That's because it's handled FIFO. In YM, you can get filled very easily because you are only competing with a fraction of the number of other trader's contracts at any given price. More price levels, fewer contracts competing at each level. The only problem you might encounter with YM is if you were trying to scalp size...but that is not a problem for me ...yet