Since I really do not day trade, it is good to know this works for all time frame. Let me back test it on my time frame and on my stocks. Thanks.
I think I may venture into reading this entire thread past the first 100 pages, it really gets the old mechanical gears turning. Gonna have to skip all the jack hershary crap tho. This has to be the most thought provoking thread on ET. If it has any use, only time will tell.
I do not believe in back testing..but if I did this is one method I would definitely test.. remember it is primarily for stop placement and adjustments..you still need to perfect the entry so that the chance of trade moving in your favor quickly is high..and when it does not work out you have plan B..which might require a fast reverse trade I better be careful.. getting very close to the obvious
Do not get me wrong..of course you will make money if you start trading the ES..unless you are totally stupid....BUT..the chances of you keeping that money are very very slim! As mentioned..I gave back just over $9k in one weekend..had bought loads of cheap ES calls..was actually speaking with another trader at the time if I should cash in or hold..he said better to hold but I wanted to take the money..come the next opening I had lost the whole lot back..boy was I mad..but no good blaming anyone else..it was MY money! You must understand that winning and losing are part and parcel..so if you can not deal with that..then you will definitely lose..100% guaranteed Think of it as a conditioning process..until such time as you are fully conditioned..you will not make any money worth talking about..and..if you are one of the lucky ones.. you will not lose most..or all..of your money. Don't mind the salesmen and dopes.. trading the ES is one of the hardest things to do.. trading stocks is an awful lot easier..and less risky if done correctly!
It is not the thread that will make you money Forget reading it all..no need to..you now know that bars are better than candles..well..I hope so..key levels are your get ready points..what is important next is what happens..not what you or anyone else thinks might happen..if you are wrong..get out and wait or reverse trade if required..if right..and momentum takes off..use your 2 bars back to lock in profits! As a poster here said.."rinse repeat rinse repeat" Anyone know what happened to Mr Redneck btw..he seems to know a bit about trading!
Assuming day trading - why do you feel the ES is harder to trade than stocks or any other instrument? I've heard this said before, but it's not logical to me. A hard instrument to trade for me would be one that doesn't move.
Because trading any market, that is mostly traded by computer programmes, is much harder to read, and thus carries higher risk compared to markets like certain stocks with very low computer programme trading! It is hard enough to follow the big boys..trying to follow computer programmes is a nightmare! Just my thoughts of course
Mr Scalper, Some would argue that the exact same reasons you just laid out is the reason why a given market is more predictable than a less liquid one... Having followed the ES for a long while now I certainly know there are patterns that repeat themselves and that this market has its idiosyncracies. Beyond swing trading, my experience with other markets are very limited intraday, so I wouldn't know. I had a fling with crude oil, but that's a market that to me is far more erratic compared to the orderly moves in the ES. Are you 'nysestocks' by the way?
Again thank you for posting. You pretty much summarized the way that I view the trading game. The missing link at this point is internal I believe. Trade what you see rather than what you believe will happen. Easier said than done. Ps. I like this thread for the riddles and puzzles and philosophical mumbo jumbo. Some may call it a waste of time but for me its bliss.
If I was a betting man id say there are many incarnations of NYSESTOCKS through out the years. Its either one person or different ones...aww the mystery.