Wouldn't touch bonds when they've been in a bull market for several decades and possibly are in a bubble. The income part is too low and I wouldn't want to risk my principle. If you're going to hold the bonds through maturity (save principle) and the yield is satisfactory to you, then go for it, but it's not worth it to me. If you must have bonds, I suggest a bond ladder of different duration with a mix of corporate and treasuries. I used to scalp ES too and had similar problems as you...over trading and too costly. I finally got pretty good at scalping ES when I learned to read the DOM, but the energy involved was exhausting...then DOM reading became less effective over time. I still use the DOM, but not with ES. I think I'm done with ES for good...better alternatives out there. Like I said before, high probability/low frequency using nat.gas...it usually has two or more good runs a day...some start at 4 or 5am. I use to trade CL (oil) a lot and that eventually became a shell of itself starting in 2012. Trading treasuries was a big deal for many years as well, but I favor NG and gold the most now. I agree, it's all about timing. High probability gives a trader confidence and confidence keeps a trader disciplined. Traders don't follow their rules when they know a large draw down could be around the corner...essentially waiting for the bigger gain to make up for all the smaller losers...of which could be a long time (talk about testing one's confidence). The biggest problem with high prob. setups is finding one...though.
Quick question.. Your name is Mr scalper, but it seems like you are against scalping... So why name yourself Mr scalper?
It's all about bankroll guys. Try taking 2 trades a week risking $250 per trade on a $25k bankroll. Psychologically very hard as you feel like you can't make decent money. Compare to risking $2500 per trade twice per week on a $250k bankroll. Much easier to be patient and not overtrade as you know 2 solid trades and you make decent coin.
It's all relative, But if you ask me...those two scenarios are essentially the Same thing (psychologically), They both feel the need to capture a bigger % from the market to feel like they're winning, For me, personally, risking for example $500....or $5,000 ...or even $50,000 is all the same, I look at what % of it is my overall acct size, -- along with other factors, Just because someone has a large acct size...I don't think they are content with small % returns, And vice versa too for people with smaller acct sizes, I don't think they are all hungry for bigger returns/risk, A good trader shouldn't even worry, or think too much, about numbers -- but just focus on the trade process...and everything will take care of itself...like blowing up a dam...,or a snowball turning into an avalanche, It never rains, but it pours, I must like Risk/returns (or be crazy) -- because I have never risked only 1% of my acct on a trade...it's way bigger,
Funny you should say that..I have been watching gold lately..and done a few trades with natural gas over last few months..as it caught my eye also Bonds..yes..I agree..I have never purchased bonds..but I was asked by someone close to me recently who has had an investment mature..if I knew of a secure investment that yielded more than the banks..so I am currently learning about bonds.. interesting stuff! You know the basics..so won't go there.. not a time to buy long dated bonds with anticipated interest rate rises..but there might be some reasonable opportunities in some UK corporate bonds..round 5% coupon for 8 year term..but as always..no reward without risk..still have a bit of learning and screening to do before I can give my opinion on risk/reward profile of the investment. One thing is for sure though..I will not be ignoring bonds going forward..as they are very important in the financial world!
It has been a 30y rally in bonds. What makes you think that this time it will be different. It made the careers of people like Gross
I like this because only a few will understand this.. A lot of people say "why day trade, you are spending too much money on commissions". But they are the same people that spent 60k on college and have yet seen a return on their investment because they are living in debt.. Who cares about commissions.. You spend 3 dollars (commissions) to make 50 dollars..How the heck is that wrong...? It's usually the people that are losers at day trading or don't know anything about business period that complain!!.. In business, you have to buy a product before you sell it and then make a profit.. So how is that any different from paying commissions for your trades? SMH... Silly kids.. Focus on the process and everything will take care of itself.
ES trader with $10 k account. 5 trades per day. $2.80 per round trip commission. What % of capital does the trader pay to his broker in one year..or let's say 250 trading days per year!
I missed this one I used to scalp..but not text book scalping for a few ticks..more momentum scalping..but..it is too much work.. discovered an easier less stressful way!