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BMT Q&A Session Dec 17th 3PM EST

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Manta, Ecuador
 
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Posts: 47,646 since Jun 2009
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12-17-09 2:36 PM - traderandreas : on the 6E no kore than 5 ticks
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12-17-09 2:36 PM - Big Mike : @traderandreas: yes, people add more and more indicators to help them "filter" out bad trades. In reality, they are making it that much harder to trade well! Confusing signals, or worse, they start to blame their interpretation of the indicators, second guess themsleves, etc.
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12-17-09 2:36 PM - jinhar : @Solar .. stop thinking abt counter trends and u will find ur trend .. told u so many times :P ..
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12-17-09 2:36 PM - rajafx1 : @trendandareas...what exactly tick size is medium size candle
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12-17-09 2:36 PM - Solar1TraderUK : which way its going,, i do tend to go both way in a trade, trend and counter trend
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12-17-09 2:36 PM - traderandreas : opposite for buys
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12-17-09 2:35 PM - Big Mike : @trding4u: my stops are dictated by price action and my chart. My initial stop is 24 ticks usually, anything larger and I pass on the trade. The stop has to be on the other side of the nearest band or swing high/low.
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12-17-09 2:35 PM - traderandreas : it is simple but it works
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12-17-09 2:35 PM - traderandreas : What works for me is with the trend find a medium size candle and if it is bearish sell at the low of this candle
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12-17-09 2:35 PM - Solar1TraderUK : @BM how would one identify a trend?
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12-17-09 2:35 PM - Big Mike : Too often traders keep moving down to smaller and smaller charts, to minimize the "hurt" of a stop. It's the wrong move in my opinion. I trade only with trend, but even for CT traders I think you must clearly know the direction of the market in order to CT properly.
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12-17-09 2:35 PM - cclsys : @BM: good question. I alternate between being a 'trender' and a 'counter-trender' and that is often problematic.
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12-17-09 2:34 PM - trding4u : to t2 its the hard point
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12-17-09 2:34 PM - Big Mike : If you are still struggling with identifying trend, then you need to step back to a larger chart.
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12-17-09 2:34 PM - David_R : I look at volume as the fuel that moves the market like gas is to a car.
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12-17-09 2:34 PM - Big Mike : How many of you can identify the trend of a market and be confident you are right most the time?
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12-17-09 2:34 PM - cclsys : @ta: I also always have BetterVolume 2 with paintbars and they are part of my subconscious view of price action now.
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12-17-09 2:33 PM - traderandreas : i think price action with out indicators works better
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12-17-09 2:33 PM - trding4u : mike is the stops based on a rulle or on chart u have few kind stops i think
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12-17-09 2:33 PM - David_R : Just because volume is low doesn't mean price can't rise. It may not be sustainable though.
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12-17-09 2:33 PM - kashman : Thanks Mike...that is really helpful insight..
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12-17-09 2:33 PM - Big Mike : personally, I do not use bar-by-bar volume in my trade decisions
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12-17-09 2:33 PM - cclsys : @ta: yes, I am using the Dvalue histograms to confirm key SR levels; I think that's my main 'indicator' now.
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12-17-09 2:33 PM - Big Mike : but seems he forgot.
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12-17-09 2:33 PM - Big Mike : @traderandreas: if cunparis would join us, he can talk about volume extensively.
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12-17-09 2:33 PM - traderandreas : I have noticed price rising on low volume when it should be halting
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12-17-09 2:32 PM - cclsys : @ traderandreas: I have found volume analysis productively hyper-confusing but I'm not giving up on it yet!
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12-17-09 2:32 PM - Big Mike : @kash: so in this scenario, I would never get in waiting for a pb all the way back to the midline, so I take pb right to the outer edge of the 1st band.
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12-17-09 2:32 PM - traderandreas : is any one using volume analysis heavily in your decision making?
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12-17-09 2:32 PM - Big Mike : @kashman: I decide a trend is very strong if on the 5m price has not retraced to the midline in very long time. Brooks calls it a 2HM.
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12-17-09 2:32 PM - traderandreas : I have found voulme analysis confusing and counter productive
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12-17-09 2:31 PM - Big Mike : @kashman: I look at two charts, 5m and 60m. 60m for big picture trend lines, and 5m for entries and exits.
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12-17-09 2:31 PM - papa14 : @BM, but you put your intial stop 24 ticks beyond but if the price moves thru the midband, you are quick to cut. Did I get that right?
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12-17-09 2:31 PM - cclsys : @BM: but the indexes are the least volatile of most of the futures markets (most of the time). But if that is what you learn on, many of the others seem super-wild.
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12-17-09 2:31 PM - kashman : Mike - One more question on the trend...So how do you decide trend is "very strong"? do you look a longer term timeframes too?
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12-17-09 2:31 PM - rajafx1 : thanks Jinhar
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12-17-09 2:30 PM - Big Mike : money management is key. not indicators, not the instrument, money management and your discpline
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12-17-09 2:30 PM - traderandreas : Thanks Mike
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12-17-09 2:30 PM - Big Mike : @papa: I enter on touch, otherwise it's too late 90% of the time, if you wait for momentum to build to the upside it's already moved 15 ticks away from the midband.
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12-17-09 2:30 PM - jinhar : @rajafx1 .. i am sorry i still havent posted anything here ..
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12-17-09 2:29 PM - rajafx1 : @jinhar, do you link to your posts in this forum
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12-17-09 2:29 PM - Big Mike : @traderandreas: no it doesn't really. I would probably recommend 6E over CL for those hours.
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12-17-09 2:29 PM - jinhar : @rajafx1 i trade with simple high low patterns . use oscillators for divergences .. the only thing that works for me is money management trading crude also my stops are 10-15 ticks and targets arnd 20-30 ticks
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12-17-09 2:29 PM - papa14 : @BM, on a pb to your midband, do you enter as it touches the midband or when it starts moving in your intended direction?
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12-17-09 2:29 PM - Big Mike : The other day CL moved 125 ticks in the same time ES moved 17 ticks. CL is $10/tick, ES 12.50/tick
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12-17-09 2:28 PM - Big Mike : @kashman: that pullback to that area happens very often, so I take them more times than not. Otherwise, if the trend is super strong, I take trades as they pullback to the outer region of the first band. That is my limit, if it is not within the 1st band, it's a no trade zone for me -- too much risk, my stop would have to be too big.
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12-17-09 2:28 PM - traderandreas : Thanks Mike, do you know if it moves well during the european market session
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12-17-09 2:27 PM - Big Mike : @kashman: I only trade with trend. If I trade anything else it was a mistake Yes, one of my primary signals is a pullback to the midline of the fib band. I have a limit order sitting and waiting for such a move.
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12-17-09 2:27 PM - jinhar : @cclsys i dont knw abt top 1% .. just i wanna imprve my trading and for that i have found this great place . i worked on all major issues i had before joining this forum .. the last one is remaining is this one .. if i can control this then it can all work out very well for me
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12-17-09 2:27 PM - papa14 : Cl not only moves, it can move very, very fast
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12-17-09 2:27 PM - rajafx1 : @jinhar, what is your trading strategy
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12-17-09 2:27 PM - Big Mike : @traderandreas: I trade CL 9am to 1pm EST
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12-17-09 2:26 PM - Big Mike : @solar: CL is a blessing and a curse. For me, I love it, much more than ES, and I make much more money. Why? CL plays to my strengths and weaknesses perfectly, in a positive way. But it's a very dangerous instrument for the beginner, and it seems like you can make so much, but you can lose much more
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12-17-09 2:26 PM - traderandreas : USA market hours or european?
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12-17-09 2:25 PM - cclsys : @jinhar: if you can consistently keep making your 30 ticks a day, you are already in the top 1% of the trading population.
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12-17-09 2:25 PM - kashman : Mike - About trend...I followed you in the CL trade room..and you took quite a few nice trades on pull backs to Fib bands.. How do you decide which band? is there a quantitative way just your experience
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12-17-09 2:25 PM - traderandreas : what are the best times to trade the CL?
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12-17-09 2:25 PM - cclsys : @papa. I'll take a look.
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12-17-09 2:25 PM - jinhar : @BM i have tried swing trading.. i will try to increase position size .. but then that i cant do much because it will break my moneymanagement rule .. so the only option for me is to take more trades .. which again i fail to do ..!!! So i need to work on that issue .
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12-17-09 2:25 PM - cclsys : second that last post by BM.
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12-17-09 2:25 PM - papa14 : @CL, did you see the volatility this morning....it was incredible
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12-17-09 2:25 PM - Big Mike : Don't get bogged down wanting more more more, usually this is a gamblers attitude, not a traders.
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12-17-09 2:24 PM - Big Mike : @jinhar: why view it as negative? if your losing days are not greater than your winning days, and you can increase position size and hit 30 tick winners, then you should be worrying about where to put all your money and not worrying about how to trade
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12-17-09 2:24 PM - cclsys : I don't get it with the CL business. It looks like a typical market to me, although I haven't traded it.
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12-17-09 2:23 PM - Big Mike : @jinhar: if you are long term profitable right now and find yourself putting on boredom trades, I would just say increase position size, you wont be as bored. Or trade a second strategy like a long term swing at the same time as your intraday trades. But these should only come after you've mastered your first plan.
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12-17-09 2:23 PM - Solar1TraderUK : CL is the daddy
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12-17-09 2:23 PM - traderandreas : any body trading the 6E here?
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12-17-09 2:23 PM - cclsys : @BM: I'll go back and look at it again.
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12-17-09 2:23 PM - kashman : ok...thanks!
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12-17-09 2:22 PM - Big Mike : @cclsys: one of my last psychology posts talks about identifying and working to eliminate your worst 5% of losing days, and how huge of a positive impact doing so has on the average traders bottom line.
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12-17-09 2:22 PM - jinhar : @cclsys .. the only prb is dat trading is all i can do ... i trade multiple instruments .. but again in all i cant seem to pass my daily target .. when i knw i can get twice more .. then wad m already doin . that too at very small risk
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12-17-09 2:22 PM - Big Mike : @kashman: Minimum $25,000 to trade CL, and minimum 2 years experience trading other markets successfully is what I would recommend before trading CL. CL IS NOT FOR BEGINNERS! Please! No!
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12-17-09 2:21 PM - cclsys : @BM: am a little stuck on that one right now.
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12-17-09 2:21 PM - cclsys : @jinhar: sounds like you are doing very well. There is always more, but what's that in the larger picture?
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12-17-09 2:21 PM - Big Mike : @jinhar: is that 85% winners vs losers in trades, or 0.85:1 win loss dollar ratio? The dollar ratio is all that maters, not the win percentage in # of trades
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12-17-09 2:20 PM - jinhar : I meant i can't
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12-17-09 2:20 PM - Solar1TraderUK : Thanks
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12-17-09 2:20 PM - Big Mike : @cclsys: first you have to identify the issue, and if you have identified this as a problem area, that's good! Now the question becomes what steps you are taking in order to change that behavior and keep your winning days equal to or larger than your losing days. I'm not talking about # of winning days vs # of losing days, I'm talking $ won vs $ lost.
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12-17-09 2:20 PM - jinhar : I have tried increasing multiple lots .. it doesnt make a difference i still hit 30ticks .. but the real problem is i can go for more .. i just watch the charts and take sim trades .. which work out really well each and every single day
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12-17-09 2:19 PM - cclsys : @BM: yup, that's why I have a hard time with the 'anti-revenge trade' logic. It makes sense if you are going for $$ out of pure emotion, but generally speaking I think a day-trader should walk away each day with either BE or at least a little positive.
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12-17-09 2:19 PM - kashman : Mike - What do you recommend for the $$ amounts to trade volatile markets like CL and TF?
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12-17-09 2:19 PM - Big Mike : @solar: I use Amp and Zen Fire. I've not had any problems with Amp, and definitely recommend Zen Fire. I've used eSignal, IQfeed and IB, Zen Fire is the best.
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12-17-09 2:18 PM - jinhar : @BM i have a daily stop loss of 30tick for the day .. Once i hit that i stop trading and once i hit 30 in positive i stop .. and for last 3 months m havin win/loss ration of more then 85%
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12-17-09 2:18 PM - Big Mike : Most traders have a real hard time keeping their winning days larger than their losing days. This is all in your head, it can be done, and in fact it must be done in order to be successful long term.
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12-17-09 2:18 PM - Solar1TraderUK : @BM Mike what brokerage u trade with? or recommend?
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12-17-09 2:18 PM - cclsys : @BM: that's the problem that I have not yet overcome - the big losing days..
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12-17-09 2:17 PM - Big Mike : @jinhar: but if you find that one bad losing day wipes out multiple winning days, then clearly increasing position size is not going to help, but only hurt.
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12-17-09 2:17 PM - Solar1TraderUK : @Jinhar Good thanks
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12-17-09 2:17 PM - Big Mike : @jinhar: If you have weeks of journal entries showing your average winning days are bigger or equal (but not less than) your averaging losing day, then I would say sure why not, stop @ 30 ticks and just increase position size.
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