Naive question or as I like to say "there is no such thing as a stupid question, just stupid people.." Anyway, how difficult is it to make 20 to 35 points a week trading 2 contracts?? Tks.
So, opitmally how would one achieve this range, ex-root canal?? I am trying to figure out how to survive (like most others on ET) just trading while supporting a mortgage and family... Tks.
It would take a large amount of capital (if you are undercapitalized, you won't make it). To make that many points per week, your probably looking at fairly large losses on occasion, and that could be tough to handle emotionally. If you are focusing on a set amount of profitability each week, you are going to have a hard time succeeding. Focusing on risk and money management first, then consistently following a defined trading system second, and (possibly) the return you are looking for will follow.
It would take a large amount of capital (if you are undercapitalized, you won't make it). To make that many points per week[/QUOTE] What is considered, estimated, a large amount of capital?
do not trade with monies that are vital to survival. If you have a pot of money that if it goes away you are bankrupt, than do not trade with this. If you have a pot of money that is 'play money' from the standpoint that if it went away, you care but are not filing for bankruptcy, than this would be a good starting point. IMO, $50k is a good starting point (not necessarily for survival, though).
35 points on ES is $1750. You probably shouldn't risk more than 5% of your account on a single trade, so if your account is $35000, that would be a max risk per trade. But that doesn't answer your question. The answer really depends on what trading system you use, the percentage of profitable/unprofitable trades, and the average gain for profitable trades and average loss per losing trade. If you have a system that average $1750 per week (about $7500 per month), I think you need an account with about $60,000. Every system I've ever seen or used always will have a string of losing trades -- there is no way to avoid this. If you are undercapitalized, it could take your balance down so far you can't recover. ES and NQ are leveraged instruments, so while you can earn money faster, you also lose it faster (than if it weren't leveraged).
First of realize that the S&P futures are where a lot of the pro traders are and they eat newbies for breakfast. Pro traders can make a sweet living off of maybe 10 points a week. Try to make 25-35 on the ES and you are setting yourself up for failure. My advice, try to make about 10-15% of your capital a month in the futures market without ever risking more than 2% of your account on a single trade. If you can do this for 12 months, you are one of the best traders around. If you don't believe me, try it. I don't want to discourage people from trading and I believe the futures market is great. But if you have unrealistic expectations the market will give you REAL results. AllenZ