Does Technical Trading Really Work?

Ask Surf for guidance perhaps?

 

However having too wide a stop or scaling into losing trades can doom people who regularly trade 1 ES contract per 20K even, so this is hard even for non-over-leveraged traders. That's why day trading teachers should be ethically and legally required to use a third-party vendor to verify their P&Ls prior to going public.

 

Really? I was not aware of that. Thank you for saving me from the ruin, those damn brokers!

 

Sure, there are plenty of ways to lose, but trading at max "day trading margin" [so-called] pretty much guarantees it.

 

I am usually in full agreement with Debit-- he has taught me much over the years--

However, I must disagree with him on this point. $400 is 80 points in the YM with a single contract. $500.00 or $400 is plenty of margin for day trading--

 

Yes, great suggestion, he can go downmarket to the YM, rather than the ES he asked about.

 

How should I manage my risk, legendary traders, with my 20 contracts on $400 margin w/an $8,000 account balance. 20 contracts w/a stop too tight will attract traders on the DOM even on the ES but a stop too wide could wipe out most of my account.

 

If you don't know where to place stops then you shouldn't be trading.

 

I don't know where to place stops with 20 contracts and a 8K balance. You're suggesting you do, so offer some hypothetical advice.

 

I always place stops below current reaction low on whatever time frame is being traded (when buying). With 8k I wouldn't be trading 20 lots, 1 lot.