To be honest, I wouldn't try and teach anyone trading. It is more complex than most will admit; this is because of the huge amount you learn from your own development and experience. I don't think I have any interest in scalping but it does appear to mean different things. I referred to target trading. I don't recommend it. But anyhow if it helps I will try and add a little more to my comments. Limit orders in CL I prefer because it keeps me in charge. The A/B spread concertinas; it moves between 1 point (1 cent) & 3 points and when the pace is really hot it can concertina out - up to 6-8 points. So in effect limit orders eliminate the spread. I'm only interested in my price. If I set it then even on a momentarily wide spread I usually get my price as price within a wide spread moves through my price. This is just an operational aspect which as in the many aspects of trading you need to address and solve. This presumes you know exactly what price you want in the circumstances. If you went after 10 point targetting in CL you could take the dozen easiest opportunities in a session but including the 1 & a half hour pre-market period 8.30-10am. So on 1 lot you could make $1200 gross per day. I could write screeds on the detail of all of this but I won't; there is no substitute for your own preparation, study and experience. For example when you take a position for a 10 point gain you allow 2 & half to 2 & 3/4 minutes to collect; you can allow up 3 & 3/4 minutes but at that point clear the position for little or no profit or very small loss (unless you are reading from your system support for your postion ). There are days such as todays session (Tues 4/29/08) when 10 points from an easily identified entry can be taken in 30 seconds. I don't think this sort of speed is welcome or practical for amateurs on ET. How you enter a position for such a short-term gain is by using a very finely tuned system for CL from which you take the signal. In any event you will decide for yourself what trading you want to develop and what is appropriate for you.
Hi Champion, What's your stop-loss for trading with 10 tick targets? I trade with an 8 tick hard stop loss, although if it moves 4-5 ticks against me I get out (when I can) before it's hit. My target is usually around 50 ticks, but I've been thinking lately of using smaller targets (10-20) because even trailing my stops I leave too much money on the table (say you're long, the spreads concertinas to 4-5-6 ticks and then the bid is hit a couple of times and your stop gets elected). Your comments are very appreciated. Best trading, Jorge
These contracts trade on CME (or Globex) and have a minimum $20 tick value. Symbol + # of ticks for $200+ ------------------------ 6R 8 QH 10 GE 8 ZQ 10 ZE 7 DD 8 QC 8 QI 7
It's not about overleveraging to make money. It's about finding that high probability trade. This said, there are days when the S&P offers good chances, and crude isn't (or viceversa).