New guy intro

fordewind · Aug 18, 2016

AntonZ said:
Thanks for answering. I have tried several approaches:

1. Slow range days (Euro session in July) - Wait for a small range to form (2-3p) and then use the DOM to scalp the range for 1-2p profits. I don't scalp it from both sides because I find it a bit difficult. Instead, I only short or only long. In this type of day, I use almost exclusively the DOM and volume profile.

2. Trend days (strong initial drive from the open - US session) - I wait for the trend to make a correction and get in on the side of the trend. I use the DOM+volume profile (profile shape, VPOC) to choose where to get in. I also make my own support/resistance levels using the volume profile and compare them to professionally done levels. I also look for a relationship between NQ/ES/TF and ES/ZN although in slow range days they aren't very pronounced.

Overall my strategy is: Have support/resistance levels. Wait for price to reach a level. Then look at the DOM and tape and look for signs of reversal or continuation (Is there absorption? Are the big orders short or long? Is the buying at the current and previous prices much more than the selling?). I also look at the Advanced Decline and the Tick to look for divergences and strength of the trend. If the signs of a reversal/continuation are there, I make the trade. If not, I stay out. I always aim for a 1/2 risk/reward ratio, although in some cases I have made nice profits with worse risk/reward. If I trade 2 lots, I scale one out at 1.5-2p profit and let the other one run.

I also don't trade 15mins before and after major news announcements, although for fun once I tried putting STOP Buy and STOP Sell orders for the CL 10 seconds before the Inventories news and made a nice profit.

This is it. This is what I have tried and what has worked for me. What do you think?
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You are on the right track,have a good understanding of the market.If everything you said holds true,you have a good chance to succeed!

Overnight · Aug 18, 2016

R1234 said:
What is MGC?
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Micro gold. It's specs and requirements are 1/10th the size of GC.

ReynaJohn · Aug 18, 2016

Hello, I am ReynaJohn a newbie here.

AntonZ · Aug 18, 2016

gkishot said:
Not sure if this is going to work or not. I never traded DOM. Are you based in the US?
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No, I'm based in Bulgaria, EU. I'm just attending an American university here (AUBG). What do you use to trade, if you don't mind me asking?

AntonZ · Aug 18, 2016

Overnight said:
If I could start over in live? I would have started with MGC. It has more price action than ES in my eyes, and while it has less volume, by a long shot, and it's only $1 per tick, the pain of making a bad decision will be muffled.

Go bad in ES on a trade and you lose 20 tics? You've lost $250. Go bad on MGC and you lose 20 tics? You've lost $20.

With only $10K, those 20-tic losses in ES may accumulate and before you know it you're down $2K. Sux.

Live is a whole different animal. The "psychology" is gonna' eat you up when the real money is on the line. So go gentle into that good night, as softly as possible. You'll be better off for it.
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Thanks for the help! I'll look into MGC and I might try it on demo before I try it live. And yeah, the main reason for kind of rushing into live trading is because I don't want to get used to demo and potentially become a bit reckless when I go live.

AntonZ · Aug 18, 2016

profitlocker said:
Your method is personal, and I hope you find a viable one. Can't help you there, but I highly recommend you avoid trying to learn with high capacity instruments. Stick with lower capacity instruments, and watch how they move after key news events. You'll learn more about volatility and how to position yourself around it.
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Thanks for the help! Could you suggest some lower capacity instruments? I try to stay out when big news are announced but I definitely pay attention to how they affect the market.

AntonZ · Aug 18, 2016

MattZ said:
There are a lot of intelligent guys who will give you great advice, so I will resort to one: don't over-leverage. Just because we (brokers) allow smaller margins for day trading, does not mean you should max out on any given contract. If you stick to this rule, you will (potentially) ride out bad periods (draw-downs) which could be lengthy and painful. I can't emphasize enough the importance of this rule. Sadly, I have seen good methods accompanied with over-leverage that the capital could not survive. Grow your contracts size slowly and incrementally.
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Thanks for pointing that out! Yeah, it seems very attractive to over-leverage (big profits chasers huh) but I will not allow myself to do that. I plan on trading with very small positions until I build enough experience and (hopefully) a bigger account.

AntonZ · Aug 18, 2016

fordewind said:
You are on the right track,have a good understanding of the market.If everything you said holds true,you have a good chance to succeed!
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Thank you a lot, fordewind, it means a lot to me! Yes, everything is true and I am constantly trying to acquire more knowledge and improve. I hope you're right!

fordewind · Aug 18, 2016

AntonZ said:
Thank you a lot, fordewind, it means a lot to me! Yes, everything is true and I am constantly trying to acquire more knowledge and improve. I hope you're right!
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You have a good plan,the $10K to trade 1 contrcat is especially good!Never break this law!

profitlocker · Aug 18, 2016

NYSE/Nasdaq stocks with good RS that average between 500k to 1M shares a day is not a bad place for a small time daytrader