Traders Laboratory - View Single Post - YM, ES and DJIA Analysis
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Old 08-25-2007, 12:08 PM
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Re: DJIA Candles

And out of curiosity, I decided to see how a daily YM chart looked. Big surprise.




Now, before anyone goes out and starts trading the YM on a daily chart, keep a few things on mind when swing trading the YM:

1) Overnight margins apply, which are set by the exchange.
2) Make sure your risk is planned out in advance. On this trade, I would have my initial stop at the bottom of the hammer. In our example here, that's literally an approx 400 pt stop. Yes, 400 pts.
3) B/c of that leverage and risk in this trade, the DIA trade may be more appropriate based on account size. Or a mix of vehicles could have worked too - some DIA shares, some call options and some YM contracts. My best guess is that the best risk/reward was probably in the DIA call options on a per share/contract basis.
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