Hey I may be wrong, maybe this trade in YM does not work. My average cost is 10546. I will buy more @10510, 10500, I dump the whole position @10475 thats it. Everything is within my risk profile, now I just wait.
Lets get this PPI number out of the way, I suspect it to be high, as metals and energy have gone thru the roof.
The nickname "Charlie Dow" refers to the admiration I have for his genius of seeing and understanding price movement. I don't trade the Dow, I trade the Euro, the Mini Crude & the Mini S&P. I trade for a living and find the Mini Dow to be just as readable as any other Market but the profit difference keeps me away. The same effort applied to the Euro on an intraday nets over 5 times the profit. I position trade all three as well. I've been short the ES since 08/10, short the Euro since 03/17 and short Crude since yesterday afternoon. I don't average in or out of anything. I'm either Long, Short or Flat. I chase no trade. If a trade moves against me more that $50 per contract, I cut my trade loose and wait for another entery. You have stated yourself that you have not been trading long. I have and one of the basic fundimentals in trading is to never chase a trade. I apologize if I offended you with my comment but if you are going to post "rabbit" trades then expect to take some flack for them.
You original post was completely wrong in the first place, I was not chasing the market I was averaging down a position near its most recent support area. Their is no real trend to speak of in the Dow, but their are areas of support and resistance.
"Wrong" is a matter of perspective. We just see things quite differently. What you call "averaging down a position near its most recent support area", I would call guessing at the creation of a bottom. To me that is chasing the market but again that is because we look at the market differently. The last longer term support was at 10526 and we smacked that this morning. I see the Dow making new lows and capable of making more after it consolidates on this bottom, you are trying to pick a bottom not knowing where "your" current trend is. I see the drop since the 10th from 10736 as at least a Bear move if not a Bear trend at some level. Not only a Bear move or Trend but one that has made lower lows both yesterday & today and dropped 230 points in 7 days. You see "no real trend to speak of". Your long @ 8:30 this morning went 40 points against you before you saw a profit. Imagine if you would have waited till the Dow truly made its short term bottom to go long about 10:30 EDT? I know you made money on your trade and that is good but it is not efficient when the trade went 40 points against you first. Absolutely no point arguing with someone with 25 days experience going for them. I can already see I can't help you. You are way out of my league.
25 days experience what are you talking about? I have been a student of the markets since November 1999 when I opened my etrade account and used Nextrend software for charting. In market terms I am just a pup, and willing to learn and admit my mistakes., which is more than I can say for some. How I manage my position is my business, what might seem unacceptable to some because of their account size if perfectly acceptable to others. Charlie Dow you have just made my ignore list so long.
Here is the link to the "Trading YM" thread where you said it. http://www.elitetrader.com/vb/showthread.php?s=&threadid=53967&perpage=6&pagenumber=5 Here is the "Quote", so no one things I am a liar. "08-17-05 12:49 PM -------------------------------------------------------------------------------- Quote from Ripley: Rickshaw.. Just curious, I imagined yourself to be a man of more than 3 contracts for you to be swing trading !!! But, slow and steady wins the race. -------------------------------------------------------------------------------- Just a small fry here, that was pretty much bottom picking. 25 trading days as of today, we have been in this frigging tight range. Now that it is making some lower lows the range is just over 1% thats right a 1% trading range for the last 25 trading days. Edit/Delete ⢠Quote ⢠Complain Were you lying then or now? I guess habit dictates you ignore those that catch you in lies.
Charlie dow, next time make sure you understand what the man meant before you put your foot in your mouth, richshaw is referring to the trading range for the past 25 days, he never said he has been trading only 25 days.