Average net 1 point/day in each of ZB,ZN, ZF, GBL & GBM * 10 contracts = $50K a day = $50K * 20 = $1M a month
I agree as I have been making many modifications to my styles and learning new strategies, technicals, news based trading, etc. I've put very big emphasis on discipline which I already have but want to develop even more. However, it is a fact that this market took a turn for the worst. Whatever your style, the lack of volatility and volume will lower your returns and may even turn you net negative. It's not a good thing anyway you look at it. So it's not just the trader if he is having hard time. It is partly the market. It is simply impossible to adjust to the specialists going out of their way to screw the intradays (and even swings). I do not care how great you are, there are certain market factors that are simply impossible to adjust to. But that's life. Like I said, a shake out will occur if the market will not get better. It's just natural. Some of the traders have other options, business venture options, real jobs (some do exist), completely new careers. As an overall measure, if trading gets less profitable it makes other options look more appealing. A certain number of traders will have to leave in order to bring the profitability level of trading back up. Or the market takes a nice sweet turn and the good ole days of 2003 come back.
It has less to do with being "great" than with keeping an open mind and looking at other strategies, other instruments, other markets. The futures are trading the same as they always have. One can adjust to anything if he wants to. The question is whether or not he wants to.
Hi Reitberg, You are wrong in assuming that "banging out $70K/month" will create a $500k drawdown one month. If you're scared of DD's like me, it will never happen. The only thing I fear more than a DD is the devil himself. Be good, nononsense
Obviously, many of you guys weren't around back in 1993-1994 when the VIX meandered around 9.0 for months on end and the S&P futures contract was trading in the 450 handle.
By the way, there are plenty of liquid futures contracts out there to trade, with great daily ranges. ie.) Try the ZB. Everyday there is a full point range ( $1,000 ) per contract and each tick is $31.25 With liquidity and range, not too mention very technical trade, the ZB is probably the best trading vehicle going. And I am not just saying this as of lately. This contract has been a Godsend for many stock-traders that have gotten tired of daytrading equities. Try it, you'll like it!
And if you are an equity-trader, how could you not be enjoying the action in the Homebuilders{/b] over the past year? CTX, HOV, LEN, PHM, RYL, and TOL.
There is a market leadership change which has happened and that is also spooking many traders. The technology and many old favourites are not part of the market action and new groups are being ignored by many traders. There are currently 53 groups at or near all time high as of yesterday. ENERGY METALS & MINING - Silver CONSUMER NON-DURABLES CONSUMER NON-DURABLES - Textile - Apparel Footwear & A CONSUMER NON-DURABLES - Personal Products CONSUMER NON-DURABLES - Cleaning Products AUTOMOTIVE - Recreational Vehicles FOOD & BEVERAGE FOOD & BEVERAGE - Food - Major Diversified FOOD & BEVERAGE - Processed & Packaged Goods FOOD & BEVERAGE - Meat Products FOOD & BEVERAGE - Dairy Products FOOD & BEVERAGE - Confectioners FOOD & BEVERAGE - Beverages - Brewers FOOD & BEVERAGE - Beverages - Wineries & Distill FOOD & BEVERAGE - Beverages - Soft Drinks TOBACCO TOBACCO - Cigarettes BANKING BANKING - Money Center Banks BANKING - Regional - Northeast Banks BANKING - Regional - Mid-Atlantic Banks BANKING - Regional - Southwest Banks BANKING - Savings & Loans INSURANCE INSURANCE - Property & Casualty Insurance REAL ESTATE REAL ESTATE - REIT - Diversified/Industrial REAL ESTATE - REIT - Office REAL ESTATE - REIT - Retail REAL ESTATE - Mortgage Investment DRUGS - Drug Related Products HEALTH SERVICES HEALTH SERVICES - Medical Instruments & Supplies HEALTH SERVICES - Home Health Care HEALTH SERVICES - Specialized Health Services MATERIALS & CONSTRUCTION - Cement LEISURE LEISURE - Resorts & Casinos LEISURE - Restaurants LEISURE - Specialty Eateries LEISURE - Gaming Activities LEISURE - General Entertainment MEDIA - Publishing - Newspapers SPECIALTY RETAIL SPECIALTY RETAIL - Sporting Goods Stores RETAIL - Apparel Stores WHOLESALE - Auto Parts Wholesale WHOLESALE - Building Materials Wholesale WHOLESALE - Industrial Equipment Wholesale WHOLESALE - Medical Equipment Wholesale WHOLESALE - Food Wholesale DIVERSIFIED SERVICES - Education & Training Services