[Dacamic]

Daedalus ... Is it correct to assume you trade more than one security?

[daedalus]

Originally Posted by Dacamic »

Daedalus ... Is it correct to assume you trade more than one security?

FX and the e-mini's. Though right now i'm focusing primarily on the ES.

[Dacamic]

Originally Posted by daedalus »

FX and the e-mini's. Though right now i'm focusing primarily on the ES.

You offer very good advice in your earlier post today. I wonder, though, if the approach you suggested is more attractive to people trading multiple securities than those trading only one. You and Hlm have mentioned reasons why "home runs" can be problematic, yet they seem more necessary -- or at least more tempting -- to single-security traders.

[daedalus]

I think "home runs" are tempting to all traders. As far as more than one security - i don't know. This year so far i've only trade the ES and I plan to only trade that for a couple more months at least. So i'm only looking at one security right now but it doesn't change my trade plan or need for a "home run".

I just don't think they occur often enough to bet on personally. That being said, a "home run" is subjective. Maybe my fib target area that I cover at is a "home run" for a scalper, etc...

But in terms of the ES as its trading right now. I'm perfectly happy taking 3-6 points in a swing because I don't see much more than that being offered on a consistent basis.

[parura]

Originally Posted by daedalus »

3) Very rarely do we get a gap and go day that just runs in a direction the entire day that you could get rich on. That happens like once or twice a month. Therefore, the other 95% of the days is congestive quick spurts and backfill onto itself, reversals, etc. Holding for the "big winner" when statistically the greatest probability is that market conditions don't (and won't) give you that opportunity doesn't seem like the best shot at making consistent money.

You'd be surprised. Better from reading it in a book it is better to test it yourself. I run statistics of all kind to get odds better than 52/48, 46/54 etc. If I find a pattern with 65/35 it happens like 5 times a year. If it gaps up or down there is about 50% probability that it close the gap or not (depends on the market but I think odds would not be much more better). This is why you using MM ratio of 3:1, because odds give you black or white.

At the beggining I thought that if market closes higher 3 days in a row there is a much higher probability that it will go down on 4th day. Still about 50/50 (yep). Probability that it will go down on 5th day goes to like 70% but again, it happens 3-5 times a year.

One of the trader's EUREKA you need to find out for yourself!

[ALexLutiera]

I think take profit is much better than chase profit.
What if you are chasing the profit yet you do not take or get the profit??
As a trader, you should know on what to do, and you should also know the strategies to use on making profit. You should be very determinate enough on what you do, and be wise enough to know what could help on making profits. Many traders would say that, it would be very easy, but honestly speaking, it is NOT. You have to strive hard, and study every methods and ways.