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Old Jun 20th, 2011, 02:27 PM   #1
emg
 
 
Join Date: Feb 2010
Posts: 5,965
Those (SMALL TRADERS) that trade with stop in the futures/commodity market are doomed to fail. I am 99.99% sure, u will lose indefinitely.

Think about it small traders, what is the main reason for the loss or blowing your account? Your stop orders.

Of course, small traders need to place stop due to small RISK capital in the account ($5K. $20K, $50K). Small Traders are taught by 3rd party educational and system vendors to place stop to manage risk and yet they represent more than 90% of small trader lose!! They just lose!!

Force trading, overleverage (trading with more cars) with less capital in the account would make sense to place stop and are doomed. 99.99% u will get stopped out.

Adding to average down is risky if one knows how to do it. Most SMALL TRADERS add to average down/up by every tick or point are doomed to fail and will blow their tiny account ($5K, $10K, $20K, 50K) in no time. THEY WILL FAIL!


Solution:

with $100K minimum in the account and begin to trade 1 car and average down/up 15-50pts against u will minimize risk. For example:


short 1325.00 emini sp 500 on 1 car.

es went against you 20pts. your drawdown is $1000 on $100K account. Is that a lot of heat? U are down only 1% of your account. Is that a lot of heat?

U will go ahead and add and your average price will be 3pts away from the market price. From there u take small profit or loss.

$100K account is equal to $5000 minimum standard to open a futures account and begin trading with 1 car


those that do not have that kind of money should either join the house or should not be trading futures market at all

According to the CFTC:

Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets.

The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.


Remember SMALL TRADERS:

More than 90% of small traders lose. They just lose!!!!


I am looking for the best answers Bring them up!
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Old Jun 20th, 2011, 02:41 PM   #2
emg
 
 
Join Date: Feb 2010
Posts: 5,965
Also, those (SMALL TRADERS) that place stop need to because they cannot managed risk. That is a FAILURE TRADER.


FAILURE TRADER!

Trading is all about mind game.
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Old Jun 20th, 2011, 02:42 PM   #3
tit_head
 
 
Join Date: May 2009
Posts: 36
Hey emg, How many contracts do you trade?
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Old Jun 20th, 2011, 02:42 PM   #4
jokepie
 
 
Join Date: Oct 2010
Location: NYC
Posts: 770
I agree with you. Short term trends in future have a very bad R:R plus has incredible noise/chop times. Most traders cannot SIT ON THEIR HANDS during these periods.

Said that - I believe Futurs trading is not for small trader with even 30K in the a/c. its just not.

Trading with stops will delay the demise...no stops will give these a/c margin calls almost every day.


PS: I don't like that you always post ur QUOTE in all threads. But I am sure you don't care and neither should anyone else.

happy hunting.
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Old Jun 20th, 2011, 02:45 PM   #5
tit_head
 
 
Join Date: May 2009
Posts: 36
Whats wrong with re entering? Why sit there and watch your pnl get worse? So risking 1% of 100k is different from risking 1% of 10k?
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Old Jun 20th, 2011, 02:52 PM   #6
Tradethoven
 
 
Join Date: Jun 2011
Posts: 37
LOL, if your stops keep getting hit your not trading the right spots. You dont understand market profile and noisy area's.

Rookies who think they know everything dont use stops, and usually get blown out within the first month of trading.

Continue to not use stops, sir. Thanks for my afternoon laugh.
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