From the day I first opened an account, my goal was to first get profitable. Now the real goal is efficiency. I stated before that all one needs is a virtual 20 to 50 ticks every day. Bet the farm. But is it enough? Am I maximizing my and the market's profit potential by trading in such a tiny time frame? If trading 100 lots is the goal, entering a position before 8:30 may not be feasible. Think of the market as a giant sponge. How to best wring out every last drop of water this market is willing to give. Maybe its that ol' greed bug kicking in again. Not content with just a few pieces of flesh, I want to scavenge every piece of meat off them market bones. I need to think like a buzzard...
I am still a newbie, but you can't fill 100 contracts at a time without major slip? I trade the Russell every day and you are lucky to see a 20 lot, maybe that is you? 5 at a give price is about the most I have seen fillable without slip. FT, how do you propose to handle this issue?
Gotta run to work (heh, bear markets sure are fugly, aren't they?). Wish you well in your trading floortrader, I'm glad you've figured out what works for you. Just be prudent in your expectations (not that it's my place to say that you are not), and I'm sure you will do quite well. You might have a difficulty finding you're quick fills on the ER once you go above 10 contracts (I don't know, I never traded that kinda size on any of the indices), but I'm sure you can fill-up to maybe 5 on the ER or 20 on the ES without a hitch (of course, you won't get the range on the ES). Whatever, thanks for your posts. Best Regards, Jimmy
An aside.... Didn't Jesse blow his brains out in a bathroom stall?? Flash in the pan. I never could understand why people hold him up as a model. I'd rather make half a mil a year simply, than roller coaster like that guy. Nothing to emulate in my opinion.
Trading environment is more important than one realizes. I trade at home with a wife that doesn't work nor have a social life. I like to trade the open because she is dropping the kids off at school. Total peace. Once she gets home, she asks what I want for dinner and comments about the guests on Regis & Kelly. If I explain I'm working the whole house goes icy. Either way, it's a distraction. I'm keeping my eye on the markets but rarely trading after 9:00. A few more months of this I may get an office. Well worth it for added production. As for Jesse Livermore, StoragePro, you don't know the whole story. True, he shot himself in a restaurant's coat room. He brought that upon himself by being cold to his family and cheating on his wives. He lost his touch due to severe depression and Roosevelt's New Deal enacted the newly formed SEC which changed market patterns and guidelines. He could no longer trade at 10:1 margin for stocks. He made $3,000,000 in one day during 1907, $100,000,000 from the 1929 crash and once owned every cotton bale in the U.S. because he could. President Taft had to intervene and personally ask him not to corner the cotton market. Admire Jesse Livermore the trader, not Jesse Livermore the man.
Your analysis is admirable my friend. Keep up the good work. p.s. have you backtested your method (manually) to check if it would work in the afternoon session (2-4pm EST). Might prove to be worthwhile. Cariocas
That is a good suggestion. I've found whatever works in the morning session works just as well in the last hour ( has to do with the mechanics of price discovery) . It's the middle part of the day I try to avoid like the plague.
What's even worse is when "The Price is Right" comes on the TV (living room is next to my trading room) and all I hear is: Harry Blubberface! Come on down! It's a brand new Caaaaaaaaaaarrrrrrrrr!... I thought I was the only one with this problem... She tries to keep the TV quiet, but forgets sometimes... Thank goodness she lies down for a nap after that goofy show...(2pm EST)