ES contract, when to add leverage?

Discussion in 'Trading' started by forrestang, Sep 21, 2008.

  1. Adding and decreasing leverage is a function of becoming profitible. Play a hypothetical or real night of blackjack and determine your edge without altering your position size based on the cards you are holding. It does not exist as it does not exist trading 1 lots in the es.
     
    #11     Sep 21, 2008
  2. Excellent points.
     
    #12     Sep 21, 2008
  3. Beautiful post.

    ***

    To the OP, aint' gonna work.
     
    #13     Sep 21, 2008
  4. I think I pointed that part out before anyone else did? Even using the word, 'theoretically.'
     
    #14     Sep 21, 2008
  5. Then why did you start the thread?

    Oh yeah, so someone would teach you about money management.

    Well, now that you know what doesn't work, you need to start thinking about what does.

    Here's a clue for you:

    It's all about managing risk, not seeking profits
     
    #15     Sep 21, 2008
  6. It all depends on how much you risk per trade and how consistent you are.

    Assuming you have a 2% risk per trade, I would say you need 15-25k per car to feel at ease with your psych.

    Based on the above use 1 car per 20k, when account hits 40k, use 2 cars, and so forth.

    You see people trade futures for the wrong reasons.

    ie Traders can open a futures account with petty cash yet you need 25k+ for SPY but ES is heavily leveraged from the get go, this is where newbies get burned, ES was chosen for the wrong reasons.

    Basically stay away from overleverage but allow room to grow in your trading plan.

    Anek
     
    #16     Sep 21, 2008
  7. The thread wasn't about how fast one can grow an account, I was asking what others have used for terms of money management, or how about one who's been down that road before has added leverage to their trading.

    That's all, asking as PFT obviously has been down that road before.

    I pretty much had an idea that the perfect path to wealth doesn't exist. That's the easy part.
     
    #17     Sep 21, 2008
  8. I profess that I would be the last one to agree with this self-proclaimed guru, but every now and then he does spit out mundane truisms that speak volumes about trading. This happens to be one of them that I agree with.

    As an eager student of market timing, I should also point out that correctly spotting trend reversals, which by the way doesn't need to be to the tick, would greatly enhance your leverage--and, consequently, your bottom line.
     
    #18     Sep 22, 2008