E-mini S&p

[ashes2ashes]

Hi, I'm relatively new to the game (a few months), and seem to be in a bit of a skid, I don't know how to pull myself out of it. What my problem seems to be is finding good entry and exit points. I tend to place a fixed stop about $50 below my entry price, and then try and let profits run until $150, but too often I have had the market correct against me and trigger my stop before I get out. What's a good short term exit point in any trade? I know this is a bit of a vague question, but I REALLY need the help.. Als, while I know there is no definitive point for entry, what's a low risk entry - I seem to be finding the worst points for entry - i.e. market doing EXACTLY the opposite to what I think. Is this because I wait for confirmation - i.e. I let it touch my price objective once, before trying again?

 

[Splitlink]

There's a book called "Trading Rules. The Road to Market Wisdom" by William F.Eng. FTPitman Publishing. This book is well worn as I drag it off the shelf frequently for consultation.

He says that (Rule 5) one third of retracement does not give the market enough scope. One half is a 50% chance of being right or wrong and at two thirds there's a good chance of the market reversing.

So his stop goes on at around 50%.

That's his opinion. No doubt plenty won't agree with that but I, for one, use it because I have been much like you on this point. At least you would have got $75 and I can't think of any other idea much better.

Good trading

Split

 

[doberman]

HI ashes2ashes,
What are you trading ?

 

[ashes2ashes]

E mini&p futures

Sorry e mini s&p 500 futures

 

[ashes2ashes]

There's a book called "Trading Rules. The Road to Market Wisdom" by William F.Eng. FTPitman Publishing. This book is well worn as I drag it off the shelf frequently for consultation.

He says that (Rule 5) one third of retracement does not give the market enough scope. One half is a 50% chance of being right or wrong and at two thirds there's a good chance of the market reversing.

So his stop goes on at around 50%.

That's his opinion. No doubt plenty won't agree with that but I, for one, use it because I have been much like you on this point. At least you would have got $75 and I can't think of any other idea much better.

Good trading

Split

Thank you.. I'll try that.. I think I'll order that book too..

 

[doberman]

Try this when your stoploss is hit let the market pass 50 to 80 pips then put in an order for the same as you where stoped, this time you know the market is heading you way and if dont get a proift you get your 50$ back
Please let me know if you can under stand this?

 

[markrand]

Hi, your stop loss seems to be based on capital risk as opposed to price movement. Try looking at support and resistance levels prior to your entry. Look to place an initial stop just above / below the last level accordingly, then work out your cotract size according to your capital you have available to risk on each trade.

Similarly, as a profit target ... I use 50 pips on hourly forex charts and trade 2 contracts. The first contract i close once I have 50 pips and the other contract's stop is then moved to the entry price....

just an idea ...good luck!!

 

[new_trader]

I seem to be finding the worst points for entry - i.e. market doing EXACTLY the opposite to what I think. Is this because I wait for confirmation - i.e. I let it touch my price objective once, before trying again?

No, it is not because you are waiting for confirmation, it is because you are trading what you think.To be successful in this profession you must see, know and then act. There is no room for guessing.

You are trading with a tight stop, which is very good. But you are trapped in the mechanical trading mentality whereas the market is fluid and dynamic. Successful trading comes down to solving the condition of supply and demand and if you can do this right in the majority of your trades you will make a profit. But don't think it's easy, it takes a lot of study and practice. Don't give up just because you suffer a series of losses. Study your losses carefully to find out what you are doing wrong.

 

[martscan]

No, it is not because you are waiting for confirmation, it is because you are trading what you think.To be successful in this profession you must see, know and then act. There is no room for guessing.

You are trading with a tight stop, which is very good. But you are trapped in the mechanical trading mentality whereas the market is fluid and dynamic. Successful trading comes down to solving the condition of supply and demand and if you can do this right in the majority of your trades you will make a profit. But don't think it's easy, it takes a lot of study and practice. Don't give up just because you suffer a series of losses. Study your losses carefully to find out what you are doing wrong.

I'm sorry, don't take this personally but I simply can't sit here and abide your comments. 1. EVERYONE trades on the basis of what they THINK. 2. If a position is repeatedly getting stopped out while the trend remains intact, the stop is too close..tight, as you say, which is very bad...unless your a masochist. 3. 'Supply and demand' doesn't have a damn thing to do with placing a stop. It is simple to measure the average daily volatility range and keep your stop out of it. I suspect this fellow is chasing mkts...hasn't even made an estimate of risk/reward ratio...and simply is enrolled in the school of hard knocks. Personally, I don't use stops.

 

[new_trader]

3. 'Supply and demand' doesn't have a damn thing to do with placing a stop.

Personally, I don't use stops.

Says it all doesn't it..

 

[martscan]

Says it all doesn't it..

Snide, I take it.

 

[new_trader]

Snide, I take it.

Considering what you wrote, yes. You fail logic 101..

Let's consider what you wrote:

"'Supply and demand' doesn't have a damn thing to do with placing a stop."

"Personally, I don't use stops."

You apparently know so much about stops but you don't use them...

Anyway, I know better than to get into a discussion with someone who doesn't use stops..their arguments are always completely absent of any logic.

Good luck to anyone who follows your advice because that is all they will have to depend on.

 

[Splitlink]

Considering what you wrote, yes. You fail logic 101..

Let's consider what you wrote:

"'Supply and demand' doesn't have a damn thing to do with placing a stop."

"Personally, I don't use stops."

You apparently know so much about stops but you don't use them...

Anyway, I know better than to get into a discussion with someone who doesn't use stops..their arguments are always completely absent of any logic.

Good luck to anyone who follows your advice because that is all they will have to depend on.

Well, what do you know! We agree on something.

What Martscan said on volatility was right, though. A trader should, at least, look at the length of the bars on his time frame. If his stop is closer away than the length of the longest normal bar ( apart from a spike, of course, which not many can foresee coming) then he is asking to be stopped fairly soon.

Split

 

[martscan]

Considering what you wrote, yes. You fail logic 101..

Let's consider what you wrote:

"'Supply and demand' doesn't have a damn thing to do with placing a stop."

"Personally, I don't use stops."

You apparently know so much about stops but you don't use them...

Anyway, I know better than to get into a discussion with someone who doesn't use stops..their arguments are always completely absent of any logic.

Good luck to anyone who follows your advice because that is all they will have to depend on.

I beg your pardon? I did not insult you personally...I stated something that is my opinion...as you, or anyone else does and to which you and they are entitled. You have insulted me. Listen pal, don't ever PRESUME to know anything about a poster save that which they post. Your posted remarks say tomes about you...your ego is offended because I immediately discerned that you are a fraud. "Anyway, I know better than to get into a discussion ......." No you don't, you ahole, you are actually inviting an argument...and you're going to get one. Your statement is fraudulent on the face of it...simple logic old boy. Another logical gaffe: Like stops, I know quite a bit about drugs, but I don't use them either. I know quite a bit about flying airplanes, but, like stops, I no longer use/pilot them. I know quite a bit about condoms but, like stops, I don't use them...want more examples of Philosophy 101...which encompassed 'logic' at my alma mater? Shall I continue ridiculing your BS trading ...as you continued to pathetically attempt to impress a neophyte trader..you weren't helping him..you were stroking your OWN insecurity needs and helping your fragile ego gratification. "Supply and demand" my foot!

 

[new_trader]

What Martscan said on volatility was right, though. A trader should, at least, look at the length of the bars on his time frame. If his stop is closer away than the length of the longest normal bar ( apart from a spike, of course, which not many can foresee coming) then he is asking to be stopped fairly soon.

Split

Split,

Bars don't move the market, traders do. What you see on your chart is the effect of the public, strong hands and weak hands all combined. To say that stops have nothing to do with supply and demand shows a complete and utter lack of understanding of what's what and what's not. You aren't going to tell me that pretty coloured indicators move the market are you??? :-0

 

[mechanicaldaytrader]

The S & P 500 is pretty advanced...if you're struggling I would recommend looking at the 1minute Dow - watch the Dow Cash first. There are free streaming charts for the Dow Cash that have nice technicals you can use.

Also, if you are going long too early (too high) then you are not accurately measuring the "oversold" condition and then waiting for it to end. There is one rule in cycles that easily tells you 50% of the time that the oversold condition is likely ending.

check out my profile for free info. Don't feel bad, I gave up on the S & P after finding the Dow was much easier.

Good Trading!

The Mechanical Day Trader