1. I said what I said. I just didn't say what YOU said I said. 2. Sorry about the leverage "nonsense"... My old eyes had read your "1:50" as "1.50" (Mortals, however, would describe that leverage as "50 x 1".)
Quote from Jimmy Jam "At the more advanced levels of trading, this information can be used to substantially decrease your risk will increasing your return, and can be used to grow your account at an exponential rate." ----------------------------------------- What a wonderful comment. I am sure the original poster would benefit (so would the rest of us) if you will take a moment to show us exactly how that works? Steve
This is way too much risk for a newbie, imo. 10K for a contract also seems too low for a newbie. I would suggest working with shares of SPY first. Good luck!
I have to agree with the others who point out that the risk per trade seems excessive for a new retail trader. Acccepting 15% risk on a per trade basis means that the trader is out of business after 6 loses. At that point, he has only 10% left in the account. If one were to take trading seriously, it might make sense to calculate the odds of having 6 consecutive losing trades. Although the odds are not great, it certainly can (and does) happen. Hey, I've done my good deed for the holiday. You guys can carry the ball from here. Good luck Steve
Look at his following post. Having no clue whatsoever. I think it's good that things are the way they are.
Let me ask you this esnewbie, if I may. 'do you truely believe that you can in a manner that will result in no losing days'
... and here's Steve-O, asking for help from me, yet again. It's really too bad that a guy who doesn't even have a college education can dance circles around a so-called college professor. It just goes to show you that this is anyone's game. JJ
Many do not understand that % of return from trading ES is meaningless. Look at it this way: Lets say you open an account for ES with 50 K and trade that only. With many brokers out there you can trade with margins of a mere $500 a car. So you could trade anywhere from 1 car to 30 as a DAYTRADER and NO overnights and play your strategy and tactics without worry if you use STOPS naturally. Forget about silly percentages of return. At end of month, or weekly.....sweep the account and start over with the same 50k. To say anyone can compound a few billion account year over year and make returns of 20% annualized to indeed rare. Therein lies the real gist of trading futures, you forget about compounding....you do what you do daily ..........the rest will fall in line. In futures you do not do silly %of returns like stock traders....they are yesterdays game....... .. Just ring the register weekly or monthly and start over...consistency is the name of the game in ES, not %'s. ..
Fearless, I understand your concern with the risksize. While I am not looking for 100% accuracy, my expectation is to be on the right side of the trade most of the times. Furthermore, if I am wrong, I will stop and reverse to reduce the loss incurred. In my paper trading, almost always I have been able to reduce the loss by reversing for 1/2 the loss amount. I would then get on the sidelines for the rest of day since I am clearly wrong on the direction.