Registered: Feb 2010
06-20-11 07:27 PM
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!
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!