With experience, you will be right more often. And those times when you are not right, you cant allow your PnL to get out of control. If you make 1k days on most days, if you have a -3k or -5k day once in a while is not a big problem. But dont allow those days to go to something like -20k or worse.
nooby_mcnoob wrote it down in the first post in this thread: Control your risk. Trade small. Better to just go for 20 or 30 USD per day at the beginning with the MNQ or MES. Most important thing is you stay in the game, with most of your capital.
If one can afford it, I recommend scalping with multiple entries, scaling in and scaling out. Helps to smooth your PnL and once you start trading bigger you dont run into liquidity issues as soon on contracts like the NQ, especially when going with momentum/ breakouts.
Hello CALLumbus, Yes that scaling in stuff works, but I was scaling in and scalping out all contracts for small profit target. basically scaling in repeatedly when trade is losing and but exit all contracts at 1 profit target. That was really the only way I can get consistent. basically just keep on scaling when losing and exit first chance of a win. I do not like scaling out, too much thinking. This all requires big account size. one loss, stuck in drawdown for a long time. Do you think there will be liquid issues with All in and All out approach?
That's everyone's Magical goal in Life....to crack that mythical One Million mark any way they can. To generate a Million bucks with trading....a trader needs to trade boldly, aggressively, and grow and compound their account. The only way to do that....is to trade day in, day out, with leverage.....the S&P, intraday with options. Now, the hard part...the Holy Grail part....is knowing the future, to be able to do that. Trade 1....$1,000 Trade 2.....$2,000 Trade 3.....$5000 Trade 4.....$10,000 Trade 5.....$20,000 Trade 6.....$50,000 Trade 7....$100,000 Trade 8..... $200,000 Trade 9.....$400,000 Trade 10....$800,000 Trade 11....$2,000,000 Happy Life~! Mission accomplished. Mazal tov. Happy New Year Millenium 2022, You can buy a nice home. a few nice cars. two nice dogs. and your future is basically set. You won the game of life. You can shake your booty all day, while other people have to work at a job that smells like fart.
No account, no matter how large, will allow you to scale in forever so that you always get out with a profit. So you should get rid of that thinking, scaling in/ averaging down to always get out with profit. Thats not the way to do it. Thats how many traders, not only beginners, blow their accounts. Over a decade ago I was learning alot about this, scaling in, here on Elitetrader, from guys like Lescor, Dustin... You can still look at their old threads and posts. If I remember right, volpri also had some good posts on his trading with scaling in and out.
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Of course there are issues in an instrument like the NQ. If you want to jump in with a stop or manually at a huge breakout point for example HOD/ LOD and the NQ suddenly moves 20 points in 1 or 2 seconds, yes, you will probably have trouble to get filled at the price you wanted, even with as little as 5 NQs. The book thins out even more during such moves, and countless traders, be it manual or program traders, compete for the few remaining contracts on the next few ticks. If you throw in market orders (or stops, which is basically the same) at those levels, you might get filled 5 points or more away from what you were hoping to get. If you enter with limit orders, the train will very often leave the station without you. Thats one of the reasons why one should not only focus on a trading style that takes liquidity. I recommend to focus your trading on providing liquidity, and only occasionally, when there is a really nice opportunity, go with the momentum and take the liquidity immediately.