john jackson III
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add third contract @ 25949
john jackson III
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i know. trying to make just one good catch to bring my account back up.
C
cantagril
Phew! I've settled on merely "bad" then - I'll leave "worse" and "stoopid" for another day
wallstreetwarrior87
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A combo of algos and retail - accross the 1 hourly - we see a big double/triple top set up. Price is now in a zone where longs have dumped and shorts are coming in.
To be honest i didnt think we would reach here, but it is non farms on Friday, so a great chance for pros to build positions down here at these (knock down) prices.
The pattern is more prevelant on the DAX.
P
postman
Did you even read the post immediately before yours? If not, why are you here?
Dentalfloss
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What are thinking on the Dax Dentist
john jackson III
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where you told me i was trading on too much margin? no i didn't see it our posts crossed.
i know i am, and i appreciate your input but its MY account.
i don't double down every day.
Dentalfloss
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lower line seems to be supporting
Dentalfloss
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Dentalfloss
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P
postman
A few helpful hints for you.
There is a great series of threads for new traders which you really should read - this is the second time I have posted the link for you as you clearly didnt read it first time.
Your trading with too much leverage this is evident from your emotional outbursts. You should be trading at a level where you dont have to type obscenities onto a trading forum because your position is wrong and your rinsing your account - AGAIN.
Here are some words of wisdom from one of the threads in the link I posted, there, you dont even have to read the whole beginners thread. I especially like the quote "As some witty soul once said: “the probability of someone laughing at you is proportional to the stupidity of your actions”. If you trade 10 ES contracts with only a $5,000 account, it’s highly probable that there will be hoots of laughter from everyone but you!"
- JJ Do you hear that sound - its laughter - are YOU laughing? No, then its others laughing AT YOU!
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"ES = crack for traders
It’s slightly better news for prospective futures traders, as many brokers advertise margins (i.e. minimum deposits) as low as USD $500 to trade instruments such as the ES (the e-mini futures contract based on the S&P 500 equity index). Instruments like the ES are highly leveraged, meaning that while you can make a lot of money trading them, you can also lose a lot. It’s very hard to do the former and shockingly easy to do the latter. Hence, the ES has aptly been described as ‘crack for traders’. It can be addictive and, financially, every bit as lethal to those who don’t understand the risks involved. Many experienced traders maintain that unless you’re a seasoned pro’, to trade the ES, you’ll need a bare minimum of USD $5,000 per contract traded and preferably double that – or more. As some witty soul once said: “the probability of someone laughing at you is proportional to the stupidity of your actions”. If you trade 10 ES contracts with only a $5,000 account, it’s highly probable that there will be hoots of laughter from everyone but you!
Optimistic number crunching
The real issue regarding the size of your account is dictated by the results of your trading. For the sake of argument, let’s say that you day trade the ES and average 2 points (8 ticks) profit per contract traded each day. (NB: this is a very good result and not one that’s easy to achieve.) At a value of USD $12.50 per tick, that’s a profit of $100 per day, $500 per week, $2,000 per month or $24,000 per annum. Let’s also assume that you use a 2 point stop on each trade and that you only want to risk 2% of your total equity on any one trade. This will require a minimum account size of USD $5,000. ($5,000 x 2% = $100.) However, keep in mind that this doesn’t take into account commissions, data and software fees, miscellaneous expenses - as well as some inevitable losing days - or weeks! This will result in what’s called a ‘drawdown’ on your account. (Drawdown is the difference in the equity in one’s trading account today, relative to a previous high. E.g. if one has $900 in one’s account today but, at some point in the past, it had $1,000 in it, then the account has a drawdown of $100, or 10%.) To be conservative, it would be wise to double your account size to nearer $10,000, in order to soak up some of these expenses.
Conservative number crunching
Now, let’s see how the figures pan out if you only manage to average just 1 point profit per day (i.e. 4 ticks). Furthermore, you only want to risk 1% of your total equity on any one trade, using the same 2 point stop and making the same number of trades. But, and it’s a big but, you still require the $24,000 per annum income. Obviously, to achieve your target, you’ll have to up the number of contracts traded from one to two. How does this impact the equity total? With two contracts and a 2 point stop, your risk is $200 per trade. To stay within your 1% per trade risk parameter, you’ll need a $20,000 account. As before, on top of this you’ll have commissions and other expenses to take into account. If we’re very generous and assume these only amount to $4,000 – then you’ll have a gross profit before tax of $20,000 P/A. Very roughly, if you’re looking to make $40k P/A, then you’ll need a $40k account. To make $60k P/A, you’ll need a $60k account etc., etc. The best way to look at it is in terms of percentages. Which is the more successful of these two traders: trader A who earns $10k on a $1 million account or trader B who earns $10k on a $100k account? The dollar amounts are the same, but trader A only manages a return of 1% while trader B achieves a relatively impressive return of 10%. Additionally, all things being equal, who has the simpler task: trader A or trader B?
It may sound easy – but it’s not
Many people reading this will think this all sounds very doable; even easy. It isn’t, far from it. To enjoy a return of around 8% per month or 100% P/A without incurring either excessive risk or large drawdowns is going to be very tough. If you’re in any doubt, scour the Sunday newspapers and look for any investment product – including hedge funds – that offer returns anywhere near this good. You won’t find any. Not even a convicted fraudster like Bernie Madoff offered returns of 100% P/A! Make no mistake; if you can achieve results as good as these, you’ll be amongst a very elite group of traders indeed. If you can repeat – or even better your performance the following year – then you really will have something to shout about from the rooftops. Please note that these figures are purely for illustrative purposes only and under no circumstances are they an indication of what you might earn trading a similar sized account. Sadly, it’s far far easier to lose the amounts mentioned than it is to make them! That said, think big and pursue your dreams with vigour, laced with common sense. "
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P
postman
Some will listen, some won't.
P
postman
Dow just got another jolt.
