Question for Traders Who's Main Income Comes From Trading

Discussion in 'Trading' started by JRL, Aug 2, 2011.

  1. JRL


    Accounting background, read many books on finance, the market, trading, etc.

    Have now been paper trading the CL using live market data for the last 10 days (via Strategy Runner w/ Global Futures). First time I've ever really done this, though have had an interest in it for seemingly ever.

    By trading a single CL contract, I've been "making" gains in the thousands, every single day. Yes, this is PAPER trading, but it's live market data, and I'm basically in and out of trades fairly quickly (usually). I'd say that I'm using a pretty disciplined approach, not looking for home runs, but for simple, quick, in-and-out profit. The liquidity and volatility of the CL appears to make that goal fairly easy.

    I'm not so naive to think that it's this easy when dealing with real money, but what exactly am I missing? What changes when you move from paper to cash (besides the obvious)?

    Appreciate any thoughts and comments, weak attempts at humor are surely to follow, I get that.

    Thanks much.
  2. IT would be like reading books on poker and playing poker on your computer, then going to Las Vegas and playing the high stakes table surrounded by seasoned pros with.
  3. rmorse

    rmorse ET Sponsor

    Live trading adds fear and greed. Let's see if your entry/exit points change with live trading. Good luck......
  4. JRL



    What's the difference if you're using live market data? You're already participating with the "seasoned pros", just not using actual cash.
  5. No, you're not. You may be using real data but you're not getting the fills(rather, lack of) like you do in the market. You cannot simulate trade execution.
  6. well, I disagree with all the above posts. My problem is with "10 days".

    Six months of honest paper trading (no reloading your account) and you'll start to see the problems.

    And if you're just trading CL from one side then all you know is how you do when you're on the right side of the trend. (Or both sides when it's chopping.)

    Everytime there's a bull market in stocks, many accountants discover that they are really good stock traders.

    Try 6 or 7 markets on paper for 6 weeks with the real account you will be trading with.

    If you're an accountant, emotions should be no problem when you switch to real money.
  7. market orders or limit orders?
  8. JRL


    Thank you. This is exactly the type of response that I was hoping for.

    Would you mind elaborating a bit on the last sentence? I guess my concern in "real" markets would be the fills that I'd get on trading only a single contract, especially since my profit takes tend to be quite small.
  9. Aok


    Is there a difference between watching porn and having sex with your woman?

    One is live. One is Memorex.

    Go shoot free throws or try and sink a 5 ft golf putt with your friend for bragging rights.

    Then go do it for money even if it's 5$

    You're not human if your sphincter does NOT tighten up when it's crunch time. In trading every trade is crunch time.

    Ask Rory Mcilroy what happened at The Masters and whether that collapse wasnt relevant to his domination at the Open.

    It takes experience to master that emotion. And that costs $ or time. Usually both.

    Best wishes in your oil trading.
  10. JRL


    Point 1 - yes, sure. Understood. 10 days is nothing. Agreed. BUT, in theory, I would think that I'd become even MORE successful with more screen time, which excites me.

    Point 2 - I'm going to stick to crude oil.

    Point 3 - being a CPA helps, I guess. Bad prior experiences resulting in lost money have helped a lot more, especially as it relates to my (much higher) aversion to risk.
    #10     Aug 2, 2011