I have a problem. I am using a method I have complete confidence in that allows me to trade with a tight stop. The problem is, I have to be perfect due to small account size. The method tracks depth of market participation cycles and compares them across a few timeframes. If you nail a trade, it is very possible to have it go immediately in your favor and run 100 points (I am currently trading YM). The problem is, I am having a harder and harder time staying focused to the degree necessary all day long. I would like to find a market, if possible, that trades in $2 a tick or so. That seems to be my comfort zone. The Ym is just so hesitant in its moves lately and they tend to burn out very quickly. I am not new at this. I do need to take the psychology out of this as much as possible because quite frankly, my fears are justified. If I take more than a few losers in any given day, I run the risk of going below margin. I know...I know, I am sure I will hear I should walk away and come back with bigger cash. But amidst all of the inevitable "get a job" flames, I hope I get some suggestions as to what people would trade that would allow them to have a 20 tick stop without risking more than $40.
Untenable. Your only option at this point is to trade itm options [not recommended] or small lots in fx through Oanda.
Best bet would be to trade overnight positions in oats or corn. Perhaps even mini corn or mini beans--I'm serious.
Let me second riskarb's Oanda recommendation. Besides currencies, you might want to take a close look at spot gold and silver there. Unlike futures, you can choose your own trade size, 1 oz. and up, and therefore set your own tick value to as little as $0.01. That means - no such thing as a "too small account", to be able to execute any conceivable strategy, money management and risk control. No forced (by account size) tight stop necessary, either.
If you are not living in the U.S. you could look at the british spreadbetting sites. Some of those allow you to trade very small size with a wide range of instruments.
Thanks for the replies. I am going to follow mini corn and mini silver to see how they trade. I am not sure why it was recommended that I trade them overninght though. I will also look into oanda...but will their prices match up with the data I get from IB? And I am in the USA so cant do the spreadbetting thing. A typical example of my trading is my going long ym at 333 EST, having it go 7 ticks in my favor and placing my stop at +2 ticks. It then took me out before running 50 ticks in my favor. I do that on a daily basis.