%% I think he got paid by the word , which may explain its word complexity.......??,????? BUT if i find one good thing =i may recommend a book. ''Bulls live above 200 day moving average; bears live below 200 day moving average- Alan Farley, Master Swing Trader''
Well done with the most contradictory post in this forum. Hate the book, unreadable, not well written, not a recommendation but I'll accept it as the authority on the subject of swing trading. I thought we already discussed this that it can be a reference to either the method or duration. No one is the authority to claim it's one or the other. Why are you claiming authority on the subject through this author? Please advise...
Because, as I've explained above (twice, now), I knew that the first few pages of his book - which explain the point so clearly - happen to be available for the "free preview" at Amazon, and that made it a convenient example to cite, without needing to look anything up. I regard Alan Farley - for all that I dislike his book - as the most well established and widely recognised "authority-writer" on the subject. All the other books I've read on the subject do make exactly the same point, too. I wasn't aware, when I posted, (probably simply through having forgotten) that we've discussed this point here before.
The term can mean either or both with context being the differentiator. https://www.elitetrader.com/et/threads/short-term-trading.307684/page-4#post-4425217
So the only instrument you can think of to retort to me about something-other-than-ES, is pork bellies? You do know the CME dropped them years ago, yes? There are many other future instruments to trade out there.
You need to know your own skill level parameters in order to get that answer: TSP = YOUR Trading probability of success/per trade (0% - 100%) DR = Daily price range in points of trading product DRP = Expected % YOU can capture of daily range of price movement CC = Commission costs DP = Daily expected profit TU = Trade Unit (1 lot of futures, 1 share of stock) M = Multiplier (Based on trading product: Ex: 50 for ES, 1000 for CL, 1 for stocks) Minimum capital = amount needed for trade product + expected draw down (anticipated string of losing days) DP = (DRP * DR) * [ ((TSP * TU * M) - CC) - (((100 - TSP) * TU * M) + CC) ] $3000/DP = # days to reach your goal, provided your DP is a positive value. Adjust TU's to fit monthly goal.
I know people who did this. +10 year later, prices are up so much that he now needs 5K to survive, so your solution is no solution.