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Strategies & Market Trends : E-Mini Pit -- Ignore unavailable to you. Want to Upgrade?

To: jefe12 who wrote (5255)	8/13/2002 10:57:09 PM
From: the-phoenix	Respond to of 11288

I know you were trading the S&Ps, but in general, a good rule of thumb for the NQs is that they generally make moves of 6-8 points. So if you find yourself ahead 8 points, be prepared to give it all back on a normal counter-trend before the stronger trend re-asserts itself. This means you should either target 6-8 points for the trade or, plan to use a trailing stop wider than 8 points. I find the latter difficult to do, so usually scale out between 6-8 points profit. (If that. I often start taking partials at 3 points profit.) There is probably a similar good rule of thumb for S&P points, but I don't know how many it is. Of course, in strongly trending markets like the last 45 minutes today, you don't usually see pullbacks that big. Even a pullback to the 20MA1 is not guaranteed.