Friday, April 10, 2009

ES Trading - 9 Apr 2009

Dear fellow e-minis traders :

Followed the S&P500 10 min. stochastic signal and shorted the ES. The stochastic kept trending down but the ES just won't plunge. Well, the ES was strong. The S&P500 was well supported above the R3 (!!!) pivot point during that time-frame & day. I decided to close the trade at zero gain (& loss) when I saw the 10 min. stochastic started turning up. You might have ask, why didn't I long the ES since it won't buckle when the stochastic was trending down. That was my answer. The S&P 500 10 min. stochastic was trending down; and I felt not to trade against that trend.

As frequently encountered, the ES did dip afterward for a while AFTER I've closed my ES trade.


Tony Chai


Discount Commodity Trading said...

i agree it's better not to trade against the trend.

Anonymous said...

trend is your friends...

Tony Chai said...

Hi :

I also realized that, when there's no clear indication of where the S&P500 10 min. stochastic is trending, you just have to be patient to stay aside.

In my earlier days (it's not that long ago :) trading the ES, I entered most trades pre-maturely without giving it a little more time (yes, a little more, not too much; if not it becomes lagging) for the indicators to show a more definite, stronger trend.

I'm still learning this in my daily practice.


Tony Chai