any "pattern day trading rules" on future trading

Discussion in 'Index Futures' started by trader_david, Mar 28, 2008.

  1. I am kind of new to future trading, just want to extend my stock trading to future trading.

    is there any "pattern day trading rules" like stock trading? just curious. and what kind of future trading firms you used, refer some to me. thanks
  2. Surdo


  3. Mate check the brokers section that will give you a start also try the search function it is good as well
  4. thanks your reply.

    that would be great. recently I get hit hard by BSC, lost 67% of my account value on march 14, 2008 ( a $55k day trading account becomes a $18.9k account), on that day I can not trade in reverse direction to recoup my loss, that hurt me lot.
  5. Syprik


    Sorry to hear about the BSC loss if that was in fact the case. However, I'm having a hard time understanding why you had your entire "trading" account in BSC and were holding it overnight???? Very poor decision, especially after it broke down from $65. With all that is going on in the market, going long on a financial overnight while maxed out is complete amateur hr. The trend is down...follow the trend.

    I would not recommend you trade any of the more volatile futures (ex ER2/ES) until you have significant screen time watching them move. You sound pretty green. Start off with 1 contract, preferably on the YM or NQ.

    No pattern day trade. No $25k necessary. Preferable tax treatment. Significant leverage. Great instruments if you can swing it.
  6. no, I did not do overnight trade on BSC, actually I was trying to pick a panic sell (start to buy it from 35 to 30, partially at 28.5) and sell it into the dead cat bounce, then I start to go short in the dead cat rally, leveraged too much, forced to get liquidated by my firm at the exact bottom, I am naive to think my brokage firm will first call me and then liqudate it under my permission, so my trading plan get killed by my firm, after my firm killed my position, I have no trading right to go short in the dead cat rally. of course I do not know the JPM $2 buyout over the weekend, I just want to catch 2~3 points dead cat bouce, then 5 points dead cat bouce drifting down, I am planning to close my longs half hour late and there iniate my short and close my short before 3:30pm.

    if BSC is a future contract, I would be able to do my short trading plan after my long side trading get killed, I think I would end up with break even or gained some.

    BSC is an extreme. I never thought the FED would be involved.
  7. Surdo


    You need to start fresh with a new "Plan".
    The fact that you still have $18.9K, you are lucky.

    Learn to make $500 a day and NO overnights until you have a clue!

    Good Luck rebuilding.

    el surdo
  8. Indeed. I've been trading for years and I still don't hold overnight, otherwise I wouldn't be able to sleep in such volatile markets.
  9. I'm also sorry to hear about your loss. One bad decision is bad enough, but seven bad decisions at the same time? I can't understand how you could make 7 bad decisions at the same time. Namely, 1) why you were not diversified, 2) why you held an obviously declining stock overnight, 3) why you were bottom fishing in a bear market, 4) why you were bottom fishing especially in the financial services sector, 5) why you kept averaging down, and 6) why you didn't protect your position with a stop loss, 7) why you used (near) maximum leverage. All of these bad decisions sound like clips from an educational video titled "Complete Amateur Hour". You sound green. I suggest you 1) Diversify. 2) Go flat at the end of the day. 3) Never bottom fish in a bear market, and 4) especially in the current bear market of the financial sector. 5) Never average down. 6) Always use a stop loss. 7) Use little or no margin. And most importantly, don't be a hero; don't go against the trend; in these months and days the trend is down, so follow the trend. The trend is your friend, except in the end when it bends.

    On the positive side, each of these 7 mistakes can be educational. Also on the positive side, there are no PDT rules in futures. Also on the positive side, no $25K is necessary. Also on the positive side, futures trading is different from equities trading. However, I suggest you watch out; there are many similarities as well, and when you're green, chances are you will be inclined to make many of these very same mistakes in futures trading as well. For example, "one contract" may sound like nothing, but you need to remind yourself the leverage in futures is much greater than in equities, and leverage can help you as well as hurt you.

  10. pipboy


    Do not go to interactive brokers for futures. They are the worst along with Transact. There are many companies out there that are better. I trade on zen fire at Dorman. I also have an account at Penson on TT. I have an account with Calyon as well.
    #10     Mar 30, 2008