Use a long term and a shorter term momo indicator. Values and choice of indicator is up to you. Then when both of them are above zero, that would be a "strong trend"
Just like 2007 when the trend was only one way, then it ended and a collapse came. Trends end very quick in a manipulated market place. Right now the only reason for this uptrend is because of trillions in stimulus and a new second round of QE. Without these in place the markets would be 50% lower today. This "trend" to the upside is nothing but trillions of dollars working it's way through the system.
Well written and you're right, however, most of the time I am trading in the above category one way on ES and both ways with trend on E6. Could you elaborate on 'cheat with money management' ...and exclude martingale systems.I hope that is not what you are referring to... Bottom line, it gets back to positive expectations and probabilities. To the majority who read your opener, they should print it and read it EVERY day...before trading. Is there a sign I should look for to indicate that I will be 'eventually bitten in the ass' NiN
I guess that explains Alcoa's numbers Thursday night. Yep, that's got to be it. Pure genius. I bow to your superior knowledge.
NH You are of course correct ----------------------------------------------------------------------------------------------------------------------------------------------- When I started out I was one of these traders Why (and I realize all the standard answers â need to be right, ego, etc.) â but I donât think these were the real reasons â at least for meâ¦. Instead I didnât really know what I was doing I couldnât read price and didnât understand what a chart was telling me I didnât think price could go there (although I couldnât explain why I thought this) I had a bias (listened to the media and so called experts) I didnât understand uncertainty I didnât think trading was as simple as it seemed â just follow price (there weâre several at the time who influenced me into thinking trading was a complicated undertaking â and yes I admit I allowed myself to be influence as well - I just thought they knew) And Iâm sure some others reason that escape me now I couldnât get straight answers to my questions to save my ass â ultimately I had to do the work and thus convince myself what I was seeing was the way I should be trading ----------------------------------------------------------------------------------- Summarized I think complete naivety would be the reason I fought against trading with price (the trend) After all it is the only way to make money - duh!!! Take Care RN
Find the strong trend, grab a nice chunk, then move to new ones. Sit on the trend too long and what you described could happen. Don't get greedy, grab your piece of the pie and jet.
Depends where you trade ES, hard to find strong trends in ES using fast charts. On the other hand, slow charts in ES are just like most US indices, give or take a few special characteristics. Personally, I think daytrading ES is a loser's game, swing/position trading, that's a different story, much easier animal to tame. I prefer the volatility of other markets or securities. What's cheating with money management ? Adding to losers, averaging down, martingale, bad discipline, throwing more money at bad money. All those addicting things that make you think you are consistent when you are just waiting for the grim reaper to tear you a new hole. ie Neke's Trading
You're giving away the natural edge . . . lol Regardless of how simple you make it, they won't figure it out.
Even with all the provided advice, it is not simple at all. Shortie was correct, but you blew him off. The markets are horrendously complicated and highly efficient, and only some make it, and even then, many blow up for reasons not just including the money management problems you state. If you make a claim, then you should be willing to provide proof, which is what he was saying. Otherwise, this is noise.