yeah..they are tough to take though especially after losing/flat on the rocket, but i guess that is also why they work, people getting screwed. getting the reversal aftera rcoket end/fail can give awesome trades...if you took the reversal after today's first rocket you would have made some good points there also. They both were also after the mkt had made new lows/highs (trade #1 new low and #5 new highs)...not sure if there is something there, but something to think about. best of luck. -dawg
dawg, Just curious why you also reversed on that last trade? Like, what makes you decide to reverse also..instead of just exiting? Was it because of the long rocket failure? If so, do you always reverse on rocket failures, or was it just this one? If so, what made this one different? Thanks, F. P. EDIT: This is what I'm trying to get at. Like, what made you take the rocket reversal trade at the end of the day, but not the first one? If you aren't sure yet either, since you're still learning, no prob. BTW, I'm not trying to pick you apart, I'm just trying to get at the details...I think details can make a big difference.
the reversals are definitely a work in progress..like i wanted to reverse this morning, but couldn't pull the trigger (the wuss factor). I don't like to reverse in the middle of the day as there seems to be too much congestion...i would rather try and fade support/resistance during midday. I think reversing after new lows/highs from either a good or failed rockets has been a good move so far. i try and comment on them even if i don't take the trade. worst case is a wash or small loss and the gain potential is quite large. I having been looking at different stops...using the high/low of the bar that has the xo or channel break. like i said work in progress. Both of todays good reversals were from new high/low rockets. morning was a good rocket and afternoon was a flat rocket. if you took the morning trade it would be 844 entry and 847 exit about 3pts. but anything midday sucked. On the today's late day reversal when we had the rocket failure AND the market failed after breaking to a new high AND we had a decent channel that was clearly broken. Those 3 factors in my mind made this a higher prob trade. I usually like this sequence : stoch leaves zone---> channel break--->macd xo...and esxit/enter on the xo. today's was not like that macd xo occured first, so i waited for the channel break to exit and reverse. I was thinking about tracingk reversal and rockets separately to get a better feel for them. i may have rambles a little, but i hope that helps.
Way to go Dawg. You are doing an awesome job. Trend Fader comes doubting, and offers no other alternatives. Honestly, I have a hard time understanding Jack's rambling, but obviously it is working for you. You seem to have pretty good discipline, and a good feel for the market. How long have you been trading? I think with the discipline you have shown you could succeed with any method if you knew it had positive expectancy. Keep up the good work, I am enjoying your journal.
thanks for your comments...about 18 months...well the discipline has come from 18months of struggles...bounced around with a few different things, but for some reason this way of trading just clicked with me. best of luck. -dawg
I simply dont believe in Jack's methods.. nor do I think they have a positive expectancy. I think Jack is a fraud.. with outrageous claims of making profits trading his methods... I honestly hope Dawg makes a million $ trading in this journal... but based on my experience... trading emini's for small points is very difficult. In reality.. you have no position sizing control.. which really makes things even more difficult. If Dawg does succeed.. I think its more to do with his discipline and experience.. rather than being a product of Jack's trading methods...
I will not continue to post on this thread w/ more of my opinion and beliefs because its really all about Dawg's trading. Maybe after a few more weeks/months... we can get a realisitic picture of how Dawg is really doing. Then we can analyze the results.. and make a fair judgement. Best of Luck. --MIKE
Dawg, sorry to cluter up your journal with this. I tried to PM Trend Fader, but his inbox is full. I decided to post it here because I think it is important. I agree with Trend Fader about Jack's methods, and about day trading the e-minis and stocks. I think trading for the really short term is the most difficult, but it seems to be what many people are drawn to probably because of limited capital. I think Dawg is succeeding because of him and not Jack's methods. However, the ideas he is getting from Jack's method are valid for trading. That is catching a fast moving trend, exiting if the trade does not go your way, reversing, staying out of whippy markets, etc. I think Dawg is really acting as a discrestionary trader within a framework. I think discretionary trading is the most difficult, but if someone can do it then more power to them. I also think if someone is doing well, it does not help to criticize without offering something positive at the same time. If Trend Fader really believes Dawg is headed down a dead end then he should offer an alternative.
you are missing the point, this is 'earn while learn' process as oppose to paying up front 6k to some guru for 2 days class and end up with bunch of useless 'manual' and a scarpbook full of squiggly lines.