You're right - the wash sale part and the full taxes sucks. But think of it as, well, training wheels while you get your sea legs. Your first goal is to get out of the DIA and get into the YM. Gotta start small, right? Don't forget Gainskeeper can automatically do all the wash sale match ups for you. http://www.gainskeeper.com/
I haven't read other replies to this, but you are severely under-funded and given the market volatility, using a 3.25 tick stop on NQ is a loser's game IMO.
If that's the case, it sounds like you aren't well enough capitalized to even trade one contract. My suggestion would be to move to a less-levered asset class.
your first trade you posted today that you took a 3.25 point hit on . Doesn't it bother you that you are not buying low and selling high? but you are selling low and... buying high? On that trade.
keep trading with 1 contract, you don't need 2 contracts, if you can't get the first entry right. don't listen to the other crazy people in here.
A scenario on stops: You can trade a 500 tick volatility bar with a 3 tick stop , just cutting in for the spread. A theory on stops: a) The correct timed entry will allow you to enter with the smallest stop imaginable. b) The incorrect timed entry,and you will be stopped out regardless if you had a 5 tick stop or a 100 tick stop. With this in mind, what do you think you have to work on? your stops or your entry? --------- you are clearly buying on the opposite ends of the spectrum... <b>obvious.</b>
SLD YM DEC08 Futures YM DEC 08 8728.0 USD ECBOT 13:00:24 BOT YM DEC08 Futures YM DEC 08 8692.0 USD ECBOT 13:01:53 The correctly timed trades, never moves against your position. <b> Your entry should be GODS COMMAND when you enter. If it isn't, it isn't the right entry. </b> Even from this entry, you can realize, from the same entry I held onto for the whole day, It would never be stopped out. Profitable from the second you entry, Profitable all day. Period. Thats ENTRY.
the above poster is correct. execution is KEY. On days like today your entry point is critical and so is your stop loss. here is what i just posted in the ES thread in the Journal section. SEE BELOW as you can see. how you enter the trade and how you manage the trade once your it in is of upmost inportance! 1. Trade execution 2. Trade management
Trading with small stops is the one of the key elements of consistently profitable daytrading. One of the reasons many do not advocate the use of small stops is because most fail at daytrading so by deduction and logic most will disagree. You need to learn how to enter correctly to be able to use small stops properly, until you do it will remain a mystery. As far as your comments of, futures being too much leverage, but hating the taxing of equities, you trying to bake the cake and eat it too. Need to make compromises, in life and in trading. TV
what? I posted my thoughts about what was going on during that trade. It's easy to look back and say "lol you sold low" but at the time I had no way of knowing; I was going by the LLs and LHs.