Sunday, March 22, 2009

ES Trading - 20 Mar 2009

Dear fellow traders :

Still practising my skills in the index futures (S&P 500 e-minis) trading. In my 3rd trade, I saw a double-top forming & shorted the ES at the support. Got out after netting 1.25 points.

I believed the ES would move down further from there as you can see from the following chart that the Stochastic of the S&P500 is starting to turn down. But I was just too tired to carry on my trade thus I couldn't really verify whether the S&P 500 and the ES did continue to trend downwards from there.

Couldn't really recover my losses incurred in my 1st 2 trades.

I realized that it's quite to tough to trade in a choppy market because you need to decide real fast whether to get out of a trade once it whipped-saw you in the opposite direction of your trade.


Tony Chai


Futures Trading said...

always prepare yourself with tight stop loss during choppy market.

Tony Chai said...

Hi :

What I've experienced so far is, between 9.30am and 10.00am EST where volatility is the wildest, I would set a very tight sop-loss (max. 2 points) because if I don't, my emotional control so far has not been trained to cut lose decisively FAST when the direction of the price action turned awfully wrong against my position.

But after 10.00am, when I entered a position with a high probability of moving towards a particular direction, I would allow a bigger stop-loss level to allow for any retracement moves which are quite common in the trend that you anticipates.


Tony Chai