Update 2013 – I occasionally make ES day trades now. It’s not every day, but you can see my charts on this site and get updates in real time when I place orders by following me on Twitter! And of course, you can still follow my longer term trades as well which are updated both on the site and on Twitter.
Update 2011 – I no longer daytrade with this method but have instead moved onto swing trading stocks (with basically the same method). I am still leaving this post intact for posterity’s sake. Feel free to browse the older posts on my site to see my daytrading results.
I now swing trade index ETFs (such as SPY and QQQ), inverse ETFs (such as SH), and their weighted counterparts (such as SSO, QLD, etc.). I will still posts my trades in real time here and on Twitter so you are welcome to follow along, it just won’t be as fast and exciting as when I was trading intraday.
You’ve probably seen a bunch of methods involving Fibonacci levels that were unclear and charts were only posted after the fact, and the losing trades were not mentioned, right?
The particular method on this site happens to use fib measurements but there is no BS or ambiguity about it. It’s a variant of another method but for this thread I modified it to specifically use fib numbers. I’m telling you right now that I buy at EACH of the fib line retraces. I don’t care which one price reverses at.
I won’t post some after the fact charts and on one be like “look, price reversed at 50%!” and on another be like “look, price reversed at 38%!” and pretend like I knew that was going to happen ahead of time. That’s what scammy “gurus” do. Most of my method was explained in the very first post. Here it is again for the people who somehow missed it the first time:
Assume price is in an uptrend and is retracing:
I buy at the 38.2% retracement.
I buy more at the 50% retracement.
I buy more at the 61.8% retracement.
I exit at 0%.
Stop loss is 100%.
There’s no cherry picking “oh I happened to buy at 50% this time and 38.2% last time and I’m the magic profitable guru who knows ahead of time which lines will be valid this time.” I don’t care. Price retraces, I buy. At all of them.