dont trade on that littleand if you absolutely have too trade low risk corn spreads or sometghing of the like
increasenow, This may not sound too impressive coming from someone who took almost 4 years before becoming consistently profitable, but I am now happy I did not use maximum leverage in the beginning or I would have lost even more. I know plenty of people would disagree with me, but a couple of my mentors suggested I switch to a simulator for a few months before even going back to cash. Yes it is true you will never experience the emotional tides that are heaped upon a trader going through a series of losses and wins. The purpose is to get a feel for the order flow as you are trading. Then keep careful records. Look at the maximum drawdown in your simulated trades. Would your current capital be able to handle what you just completed? If not why go to cash? If it could then you have to decide if your method involves all in and all out or is it a scale in method. If all in why not start with 1 contract? In a month if you are profitable, you will have more than $4,000.0 and would be in a better position to decide if you want to go to 2. In a couple of more months if you got your account up to $6,000.00 you can increase size. But what if you are negative? At least with one contract your losses will be at minimum, one half of what you would have done. That is one way to reduce risk. When I first went to cash after my years of losing and the couple of months in a simulator, my written goal was to net on average $35.00 per day. Funny but I still have that written goal. I have not raised it. Maybe I think I will jinx myself, LOL. Most of the traders in this post, although not saying what you might want, are sadly correct. It is damn tough. Every one of the world class traders I trained with blew out thousands of dollars in their first year or two. It is great to have the confidence, but to say, "No problem, just because Lewis Borsellino blew out $25,000 in his first six months of trading, it can't happen to me," takes on a bit of improbability. Just take it easy. There will be plenty of time to increase size. Alex L. Wasilewski Co-Founder & Head Trader Trades That Work www.puretick.com 1-877-GOLONG1 (1-877-465-6641)
That's a great advice. Why do you absolutely want to trade the most demanding, harshest instrument where guys incredibly better than you are spending large amounts of money in algos, technology...? Even really good dicretionnary traders like Anekdoten and AustinP says that it's really hard and takes a lot of time to master it. Why not watching stuff where competition is not so rude? I swear ag spreads will be able to handle your massive 10 lot calendar spreads as I know you will not learn with 1 lot.You just look for the most obvious and hype stuff where every newbie goes to lose it all. You have to be a lot more inventive and stop asking if this or that is possible, and start learning something at your level. Good luck.
well i cant tell if tradator is mocking or agreeing with me lol, but i stand by my response. If you absolutely must trade, even though you shouldnt on that little. Try trading the corn carry spread for instance. buy july sell dec. IT's a very low risk spread, the only risk imo is that if nothing goes wild during planting or etc etc. Any supply or demand issues will cause july to gain heavily on dec. Just my opinion if you wanna go trade with the sharks then by all means go for it. Or you can play in the grain markets and pick up the pieces that the funds leave behind snd the pieces are very large and the funds dont even know they are missing
I was not mocking at all.Sorry, my english is not that good. I agree with you. I was refering to the ES as extremely hard to trade.He needs something that trades with low movement/margin like calendar spreads. Moreover, corn spreads are relatively easier to trade than the ES IMHO, so it's better to learn... I was just teasing about the fact that he would probably take 10 lots of spreads as he trades 4 lots of ES with 3.8 K.
so the consensus is...you believe that trading 1 car of Corn at $800 daytrade margin is less risky than trading 1 car of ES at $300 daytrade margin...correct?...not talking Corn spreads...again, from a $3,800 account...
Increase, for someone who is so gung ho about all the money one can make trading, you sure ask a lot of questions and require a lot of opinions. Just choose a market to trade, based on characteristics that you deem suitable for YOU, and learn to trade it.
Inow, you don't have enough cushion to trade anything with that amount. You're better off getting more capital and continuing to train. All traders pay tuition to the market and only a few graduate.