Best Thread Potential setups

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firewalker99 said:
I don't understand why you would want to let price retrace 130 points (on the YM) back towards your entry point, when you could've easily taken profit, and re-entered.
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Time and again I heard him say, "Well, this is a bull market, you know!" as though he were giving to you a priceless talisman wrapped up in a million-dollar accident-insurance policy. And, of course, I did not get his meaning.

One day a fellow named Elmer Harwood rushed into the office, wrote out an order, and gave it to the clerk. Then, he rushed over to where Mr. Partridge was listening politely to John Fanning's story of the time he overheard Keene give an order to one of his brokers and all that John made was a measly three points on a hundred shares and of course the stock had to go up twenty-four points in three days right after John sold out. It was at least the fourth time that John had told him that tale of woe, but old Turkey was smiling as sympathetically as if it was the first time he heard it.

Well, Elmer made for the old man and, without a word of apology to John Fanning, told Turkey, "Mr. Partridge, I have just sold my Climax Motors. My people say the market is entitled to a reaction and that I'll be able to buy it back cheaper. So you'd better do likewise. That is, if you've still got yours."

Elmer looked suspiciously at the man to whom he had given the original tip to buy. The amateur, or gratuitous, tipster always thinks he owns the receiver of his tip body and soul, even before he knows how the tip is going to turn out.

"Yes, Mr. Harwood, I still have it. Of course!" said Turkey gratefully. It was nice of Elmer to think of the old chap.

"Well, now is the time to take your profit and get in again on the next dip," said Elmer, as if he had just made out the deposit slip for the old man. Failing to perceive enthusiastic gratitude in the beneficiary's face Elmer went on: "I have just sold every share I own!"

From his voice and manner you would have conservatively estimated it at ten thousand shares.

But Mr. Partridge shook his head regretfully and whined, "No! No! I can't do that!"

"What?' yelled Elmer.

"I simply can't!" said Mr. Partridge. He was in great trouble.

"Didn't I give you the tip to buy it?"

"You did, Mr. Harwood, and I am very grateful to you. Indeed, I am, sir. But"

"Hold on! Let me talk! And didn't that stock go up seven points in ten days? Didn't it?"

"It did, and I am much obliged to you, my dear boy. But I couldn't think of selling that stock."

"You couldn't?" asked Elmer, beginning to look doubtful himself. It is a habit with most tip givers to be tip takers.

"No, I couldn't."

"Why not" And Elmer drew nearer.

"Why, this is a bull market!" The old fellow said it as though he had given a long and detailed explanation.

"That's all right," said Elmer, looking angry because of his disappointment. "I know this is a bull market as well as you do. But you'd better slip them that stock of yours and buy it back on the reaction. You might as well reduce the cost to yourself."

"My dear boy," said old Partridge, in great distress–"my dear boy, if I sold that stock now I'd lose my position; and then where would I be?"

Elmer Harwood threw up his hands, shook his head and walked over to me to get sympathy: "Can you beat it?" he asked me in a stage whisper. "I ask you!"

I didn't say anything. So he went on: "I give him a tip on Climax Motors. He buys five hundred shares. He's got seven points' profit and I advise him to get out and buy 'em back on the reaction that's overdue even now. And what does he say when I tell him? He says if he sells he'll lose his job. What do you know about that?"

"I beg your pardon, Mr. Harwood; I didn't say I'd lose my job," cut in old Turkey. "I said I'd lose my position. And when you are as old as I am and you've been through as many booms and panics as I have, you'll know that to lose your position is something nobody can afford; not even John D. Rockefeller. I hope the stock reacts and that you will be able to repurchase your line at a substantial concession, sir. But I myself can only trade in accordance with the experience of many years. I paid a high price for it and I don't feel like throwing away a second tuition fee. But I am as much obliged to you as if I had the money in the bank. It's a bull market, you know." And he strutted away, leaving Elmer dazed.

What old Mr. Partridge said did not mean much to me until I began to think about my own numerous failures to make as much money as I ought to when I was so right on the general market. The more I studied the more I realized how wise that old chap was. He had evidently suffered from the same defect in his young days and knew his own human weaknesses. He would not lay himself open to a temptation that experience had taught him was hard to resist and had always proved expensive to him, as it was to me.

I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling the other customers, "Well, you know this is a bull market!" he really meant to tell them that the big money was not in the individual fluctuations but in the main movements – that is, not in reading the tape but in sizing up the entire market and its trend.
 
firewalker99 said:
I'm sure you know what you're doing, but I hope newbies aren't thinking of doing the same! No single trade is worth that risk...
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Even if 100% of your account is on the line, there is no risk of a loss at all if you pyramid correctly.

However, the probability is high that you see a significant profit go to zero.

Still, that is a risk I feel is worth taking.
 
trader_dante said:
Even if 100% of your account is on the line, there is no risk of a loss at all if you pyramid correctly.

However, the probability is high that you see a significant profit go to zero.

Still, that is a risk I feel is worth taking.
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Out of curiosity, how high does it need to go up to see your profits evaporate?
 
trader_dante said:
I'm short from an average price of 7879 on the March future.

So just below the high of the day.
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Nice entry and nice text. But that doesn't mean it's a good habit to ignore 200 points profit and let them return to 0 (close enough anyway) in the hope of catching a bigger move.

Even if we hit 5000 :)
 
If he really believes in the bear market, I can't see stops below 7950 - 8000 making any sense at all - around 8300 seems the first sensible place to re-think the position, and even then it's not a definative change of sentiment.
 
trader_dante said:
I'm short from an average price of 7879 on the March future.

So just below the high of the day.
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Hope you caught some before we tested support on the YM/ES and NQ futures TD, nice 180 pip run on the way down that...and a lovely V backup for almost the same.
This beast cannot be tamed by mere mortals I fear...
Respect to the markets!
Swingers unfortunately must have found it a tough day again...
 
I don't know why everyone gets so excited. Who gives a sh*t about these little rallies?

Each to their own. Giving back a few hundred points means nothing to me. I see new_trader has repped you...well that's how you guys trade...tight stops...try and take every swing etc...but for me it's different. I am not losing my position until I am certain I am wrong. And a 200 point rally in the Dow means nothing to me right now. See Geckos post above.

And imo, FW, this is not what is least expected. Rallies in bear markets are violent as the shorts cover and the bargain hunters come in...I still think we're in for a move lower...

Daily pin now though. Let's see...
 
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trader_dante said:
I don't know why everyone gets so excited. Who gives a sh*t about these little rallies?
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You're missing my point. It's not about rallies. It's about remaining open to what the market is showing. Staying alert to the picture that's being painted during the day. Having fixed ideas about where the market should go or should not go, is what causes most traders to fail.

trader_dante said:
Each to their own. Giving back a few hundred points means nothing to me.
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Doing it two times in one day would bother me... I guess you just stopped caring about profits :)

trader_dante said:
I see new_trader has repped you.... you...well that's how you guys trade...tight stops...try and take every swing etc...but for me it's different. I am not losing my position until I am certain I am wrong. And a 200 point rally in the Dow means nothing to me right now. See Geckos post above.
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It's not about new_trader, it's not about me, and it's not about tight stops. It's about listening to the tune of the market...

trader_dante said:
And imo, FW, this is not what is least expected. Rallies in bear markets are violent as the shorts cover and the bargain hunters come in...I still think we're in for a move lower...
Click to expand...

Personally I can't tell what is expected or not, but it's highly likely that the majority were looking for a decent plunge after we broke the last support line today. All I'm seeing is a market refusing to go lower, and too many people waiting for new lows.

The exact same thing happened just a week ago...
 
we went past your average price dante surely you should be taking a loss now or have lost alot of your posistion if you were using break even stops?
 
Sellers stopped selling. Bears had a great opportunity to plummet the market but we broke up. Expecting higher prices here
 
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