Tuesday, April 28, 2009

ES Trading - 28 Apr 09

Dear fellow traders :

Shorted the ES based on the S&P500 10 min. stochastic trending down gradually. But I was stubborn not to close the trade when the S&P500 10 min. stochastic started trending up. Stopped out at 12 points loss.

I really need to train up my discipline not to enter any trade when the S&P500 10 min. stochastic signal was not clear. And I have to admit I wasn't focused. I was monitoring my options position and wasn't looking at the big green candles forming in the ES when I was SHORTING it. I could have reverse my trade or I could have stop out my trade. But nevertheless it was a great lesson not to multitask too much when I'm trading.


Tony Chai


daytrader233 said...

Beware of those gap openings Tony. 6-7 out of 10 times price will try to return to the previous day's close and/or the pivot point.

Futures Options Brokers said...

when do you put your stop loss order? just after you open a position or you wait any signal?

Tony Chai said...

Hi daytrader233 :

Thanks for your advice. I would certainly take note. At the moment I really need to understand the default pivot points set-up provided by the Ninja Trader platform.


Tony Chai

daytrader233 said...

You could visit the NT Support Forum for any questions.
BTW, going short against those up trending moving averages doesn't seem as though it would be a high probability setup, no matter what the indicators are reading at the time.
And a 12 point stop is not realistic in trading the ES. IF you are following the trend (trading on the correct side of the MA's) and combining that with your indicators, then a 2-3 point stop loss is all you need.

Tony Chai said...

Dear daytrader233 :

Thanks for your advice. You've been a great guy to have given me your frank opinions/guidance along the way.

Good to know that you've also started your own trading blog. I truly hope that you would be successful in your trading.

And as for me, I realized I've not been doing too well lately. Thus, I've decided to review all the chart patterns that I've screen captured during these past few months to see where I've gone wrong or where I've done right.

I hope to post my trades when I am on my track again. Meanwhile, take care my friend,

Tony Chai

daytrader233 said...

One of the most important pieces of advice I can give you it that you trade WITH the trend. In your case, the moving averages are clearly showing the trend. If you are going to use the indicators then wait until everything lines up.
Good luck.

calendartrader said...

Hi Tony and daytrader233!
your discussion really make sense. actually, that's a big deal of how to get good skills of trading.

Money Central Online said...

Hi Tony,

Would the idea of blog link exchange sounds good to you?

If interested, pop me a email at the contact below.