Tuesday, February 12, 2008

5 Year Index Charts



5 comments:

upside said...

hey stewie,
saw alot of puts bought on xlf today--skf could get jiggy again-made it all by 11am today-it was a grind after that-later bud

Stewie said...

hey Up,
it was a weird trading session for me. market was up nicely as anticipated but i could not find any compelling trades. So i decided to take my 'regular' mid day nap and i didn't wake up 3:45pm(got very little sleep the night before) and saw that the reversal had taken place. volatility is wild right now but that reversal didn't look bearish to me and if anything will likely just stick us in a trading range(booooooo!) for a while, unless the retail numbers trmw morning spice up the party. c ya tmrw!

GRAYMUD said...

Hey Stewie. I have been studying your posts and really enjoy your blog.

I am wondering about your main Time is Money paragraph and how it relates to stops.

Do you use really tight stops, say 10-20 cents, and get out right away if the trade moves at all against you, or do you still give it some wiggle room within those first 5-10 minutes waiting for it to take off?

It seems to me if I use the tighter stops, I can increase my position size, and if it goes against me the 10-20 cents, I was probably wrong about the trade anyway.

Do you think the larger position size on the good trades makes up for getting stopped out a bit more often?

Thanks for your help.

Ragin' Cajun said...

Stu,

you still haven't updated my link? Where's the love?

Stewie said...

hi Gray mud,
trading over the years i noticed that the best trades, the trades that make the most $$$ are the ones that work right away, you buy and it literally starts producing profits within 5-10 min. i don;t use actual physical stops, i use 'time stops' if a trades takes more than 10 min to work and mental stops in case price action turns sour after the trade is on. i usually sell if the pattern i am looking fails completely. i also, never put on full positions right away. i always start with half or quarter positions and add if the trade starts to work. that's the key part to my trading really. add small positions initially and you are proven to be right, add add and add. and if you are wrong, then you are wrong with only half or quarter positions and your losses should be minimal.

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