He is definitely a noob, who thinks he is all that cause he had a few profitable days. At 25,000 shares per day, he has little bargaining power and just needs to STFU. .004 is actually a decent rate for that volume. Doesn't matter, the market is going to teach him a lesson very soon.
Noob!!!!!!!!!!!! hahaahahaa....I got 1999 cofirm stmts right in front of me fool. I hope your assumptions aren't this bad in trading! Anyway, I knew this thread was gonna end up useless. I can't say my feelings and get some useful feedback, right away all these brokers will jump on board and ruin the thread. I thank everyone who gave me some decent answers.
Ok, I read through the rest of the comments in the thread, and there are some valid points. I called a CFA friend of mine (oh yes, analytical, upon analytical!) Sometimes he lets me know when I make a dumb trade by hitting me with "You really fucked up! ok, get out Investments by Bodie, Kane, Markus, and go to pages..." When he's got time in the evening, he will walk me through the the mess I made in my own account (I'm a Broker and RIA), and it's a real learning experience. He was a Portfolio Manager for about ten years before launching his own Hedge Fund five years ago. (Yes, I know, everyone today has a hedge fund. LOL! My son in the 5th Grade is starting his own next week. ) He said it may very well be possible to make $500/day trading 20:1 with 10m. However, there's a problem. He said, "when he gets his ass handed to him in a bad trade with that much leverage, and only 10m in Capital, that may do some pscyhological, and discipline damage he may not be able to get past. If he does get past it, the best way to look at it is an expensive learning experience you can't be taught in class." The other problem is you're needing the income to live on, and there's only 10m, so no cash reserves+1 bad trade= there's no time to walk away for a while, and paper trade your system until you're profitable/confident again as you're needing the income now. Here's a few questions: * How long have you been trading? * Are you trading 80% Technical, 20% Fundamental? etc., * What are you trading? * If multiple equities, or contracts, where/how are you getting your picks? * How many shares per day? * How much are you paying to execute each trade? * How are you managing risk? * Have you kept a record of the % of trades that gave gone against you vs. the winners? What is that number? * How is your P&L sheet looking YTD? * Try to explain a little about your system.
This is indeed one of the stupidest posts ever made here. But let's look on the bright side. The fact that idiots like this wander into our cage means that we eat.
There is in fact a wide range of instruments to diversify in futures, even if you're right in the big picture. I trade something like 20 different instruments everyday. When you say "Corn", it's not just one instrument, but 20 liquid expiries( which behaves quite like correlated stocks within the same sector), calendar spreads representing the difference between those expiries, butterflies, strips, intermarket spreads with wheat, all exchange supported with their own order book. Same thing with crude oil, eurodollar, gold or even Minneapolis wheat, RBOB Gasoline and Copper... Futures trading is not only stock index futures trading, and I agree this is not the path a novice trader should choose. I believe a few manage to make a living out of it on this board though. But there are a lot of instruments that are not dominated by algos, and some algos are really dumb on futures, I swear. I just wanted to make a point about this. Let's not continue this "stock vs futures" battle. I like to see stock traders winnings on the P§L thread as much as I like to see futures traders. Pro stock daytraders must make more on average but there are a lot of futures scalpers, spreaders and fundamental/ seasonal traders making money consistently... And it would be hard for me to change now...Stock and futures traders, good luck.