Lamont - I'm missing your point regarding one contract versus 5 contracts. With 5 contracts, the commissions will be 5X and the profits will be 5X, so % net return (on margin used) will be the same whether using 1 contract, 5 contracts or 100 contracts. What am I missing? Sandy
Due to this statment I have decided to copy part of Marks Douglas' book The Disciplined Traders. Just on the significance on S/R and how it works. I would suggest anybody trading this type of strategy delve into the psychology of it before trading it. This is a very good book for all levels of traders and if you don't already have it your library I consider it must. This document is but a small portion of this great book. I personally read it all the time. I have made so mant notes on chapters 15 and 16 I had to buy another copy. Once you read this document go back and re read it until it just clicks with you. I hope you find it as helpful as i have. 4re
Sandy, I believe what Lamont is trying to say is that if you a greater than 50% W/L ration then you let the magic of mutiplication increase your account size. Not the net return of one but the net retun of say 5. Instead of $900 now you have $4,500. You can add more contracts as they add up and by the time you get to present you could have added as much as 9 more contracts. I would not go that much but maybe 2 anyway. It is compounding and that is how you build an account. With those numbers I probably would not do this type of trade because I like a little higher probability but if you are new you would at least be making some money. Also Lamont was trying to say keep re testing it with different ratios or just look at the chart and see if it is telling you someting positive on the winning days that might keep you from trading on those losing days. I believe this is what he is saying, if not please correct me, Lamont. 4re
Here are my numbers and chart for tomorrow: There are 2 good long levels for tomorrow, they are close together but if you look at the chart closely they are different levels. Long 1283.50 and/or 1293 Short 1273 as of this writing none of these were taken out in todays lackluster trading. Good Trading Tomorrow, 4re
FYI, I use 3 different charting programs. How many do you use? BTW, are you female? Your ET name sounds kind of "girlish"...
I don't know if you are asking me or not. I don't think so but I'll tell you anyway. 4re said all together is Ferrari. I just so happened to see one the day I signed up for ET and thought of the name. Maybe one day, huh...BTW my name is Gary and I am in the Dallas area. 4re, varoom
No, 4re, I was not asking you. I was asking myminitrading. Only because he was being a butt on the QT poll thread. So I thought maybe he (she) was having a "monthly" problem if you know what I mean... And I was a little weirded out that he had folowed me to this thread. Ferrari's are totally cool cars. So your name is cool too. Journal is doing okay too. Even though I keep popping in and adding my nonsense to it. Trying to stay cool. I'm in the Seattle area, and my name really is version77...
I gotya. We sure could use some of yalls rain down here right now. Keep popping in and good luck tradin...