Why Is The Obvious Not So Obvious?

Discussion in 'Risk Management' started by nysestocks, Jan 25, 2009.

  1. _eug_

    _eug_

    I need to learn to flow with the waterfall, I dont have enough materials to construct a strong enough dam. Im just a small twig that gets snapped by the raw power of the flow.

    Is the answer to wait for the dam builders to show you that they started construction?
     
    #5881     Jun 29, 2017
  2. MrScalper

    MrScalper

    Hindsight is always easier..you must take current conditions into consideration..like today..where it was very obvious that it was a controlled move.

    It will not always be like this..and volatility can cause you to lose a lot if you use the method mentioned..so..always know if it is a controlled move..and always be prepared to get out with a profit..after all..re-entry is but a commission away

    Do not be fooled..it is not easy.. especially the ES..much better to stick with stocks until you can make some money..a few errors with ES can wipe out an account very quickly if you have not mastered taking losses and reverse trading..no room for error when trading with the real pros.. which the ES is mostly!
     
    #5882     Jun 29, 2017
  3. Pelt

    Pelt

    Was my answer not the pre-requisite you had in mind?
     
    #5883     Jun 29, 2017
  4. _eug_

    _eug_

    I noticed the order book was quite thin for most of that move today... Is this tip off to a controlled move?
     
    #5884     Jun 30, 2017
  5. MrScalper

    MrScalper

    No..thinking is of no use unless relevant knowledge is first attained.. common sense really..no matter how hard you think about making money..unless you learn about what is required first..there is no way you will ever succeed..even when you do learn..you then have to overcome the many obstacles such as inability to act.. psychological issues and last but not least.. personal circumstances and personal issues!

    Thinking too much can actually make things worse..even end up with depression..which you definitely do not want if you are risking your money in the financial markets!
     
    #5885     Jun 30, 2017
  6. MrScalper

    MrScalper

    Hard to say without seeing it and the charts at the same time..my personal opinion is you do not have to worry about market depth levels with the ES..unless you get caught on the wrong side with a lock limit down market..which happened me once..and will never happen me again :)

    Pay attention to the bid/ask trades when approaching a key level..put up the bid/ask highlight on the price axis with you IB chart..set the timeframe to 5 or 10 sec..or what ever low timeframe allows you to clearly see the last traded price and where the bid/ask is now at..try it!
     
    #5886     Jun 30, 2017
  7. _eug_

    _eug_

    I dont have any market data through IB at the moment, only through Sierra Chart. I will monitor bid / ask trades on my DOM as we get to key levels. I guess a footprint chart may provide clarity but I want to keep things simple.

    I'm having a strategic debate between just blindly getting long / short at levels depending what side we approach from and just aggressively managing the trade from there or looking for confirmation first before taking a trade. If we blow through a level we will usually retrace back to it which allows for an exit or reversal without too much pain but requires big stop losses or non at all. And the levels that do offer a bounce can be exited at break even or small profit if the do not offer the full trend reversal... But when that trend reversal comes... ohh baby.
     
    Last edited: Jun 30, 2017
    #5887     Jun 30, 2017
  8. MrScalper

    MrScalper

    You are joking..right!

    That is like saying I will go surfing the big waves even though I know there are man eating sharks lurking around:)

    To be honest, I doubt if you will be able to make money trading the ES..takes a lot of experience and self control..both of which you are lacking in at the moment.

    Good advice is to trade low priced stocks that meet the required criteria..but I know you will not listen..just the way it is.. very few listen..and even fewer make money!
     
    #5888     Jun 30, 2017
    ironchef likes this.
  9. MrScalper

    MrScalper

    Many years ago I was told to forget about 10 monitors and "keep it simple"..but I laughed at the fool telling me..after all..what did he know about "daytrading"..and I had read all the good stuff and knew what to do.

    All I will say is..guess who was right..and who was wrong :)
     
    #5889     Jun 30, 2017
  10. _eug_

    _eug_

    I want to listen its just that after spending 4 months looking at the ES chart every day, I am hesitant to change but then again.. if I am not making money doing what I am doing...

    I tried trading low price stocks "in play" when I just started out but really hated the massive spreads on the bid ask.

    What is the criteria for stock selection? does one specialize in a single stock or are you to chase whatever is moving that day which is what I tried before and what is advertised to newbs (ie, sure way to lose money).
     
    Last edited: Jun 30, 2017
    #5890     Jun 30, 2017