Trading e-minis with $1k starting capital

fearless9 · Mar 21, 2008

Quote from IndexScalper:

I know what you're thinking... another piker setting himself up for failure...

Therefore I have a set of rules that I will attempt to follow religiously. I will rate myself daily on a scale of 1-5 as far as sticking with the rules.

Even though I started the thread as $1k starting capital (I caught your attention, didn't I), I will allow myself a bit of cushion so the actual starting amount will be a bit more - about $1,100 to be exact. I still have to be very careful initially since my broker can cut me off when my account falls below $800 or so. I will not set any daily goals as far as percentage gain or daily set $ amount because I believe they tend to lead to problems. If the day is not going well or if opportunities are scarce, there is no way I'm going to try squeezing water out of stone. I will stop trading for the day once I hit my daily stop loss target, currently $110 or 10% of account size. This amount will increase progressively to reflect the account growth. I will be trading 1 contract initially and at some point in the future will try to scale up. I will not set any daily or monthly monetary goals since I believe that if I concentrate on trading well profits will take care of themselves.
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Yes it can be done IndexScalper, the question is, can you do it.

Having read this thread, I would say that the odds do not favour you on the ES, simply because you do not appear to understand it.

Anyway, all the best to you.

regards
f9

fearless9 · Mar 21, 2008

One more point IndexScalper.

Statistically, you have you put yourself in the enviable position of not tolerating any losing days, whether you understand this or not as yet.

From this mindset, you just might succeed.

regards
f9

allenhobbs · Mar 21, 2008

I hope this works for you. I love successful trading stories that defy the odds.

mgabriel01 · Mar 21, 2008

if you set stop losses at 100 bucks on every trade
you have 10 trades to get it right
smaller stop losses and the odds against making money go up in my opinion

econdude · Mar 21, 2008

im curious to see if you can do it, but plz post a screenshow of daily p/l for proof

increasenow · Mar 21, 2008

Quote from austinp:

<i>"Despite all odds I will attempt to prove that not only it is possible to trade successfully with only 1k but the profits when added over time will be nothing to scoff at. I am purposely not trying to make any projections but my analysis tells me that making $1000 - $2000 per month is possible."</i>

About a year ago I had $1,000 balance in an account and decided to see where it could be traded to using a specific approach in the ER2.

First day it went from $1,000 down to $800. Second day it went to $1,500+ and then stair-stepped higher from there. Before the end of second calendar month, account balance was $60,000+

#1) In this specific experiment, three more stop-outs of -$100 each (my usual stop size) on ER would have shut down that account until further funding. $500 is the cutoff, and I was three straight losses from done. That was the razor-edge difference between -$500 and +$59k as a result.

Obviously, luck & fate of how win/loss distribution played out was critical in the beginning. Once the account balance crests $5k, methodical skill takes over. Until then, tiny accounts are subject to whims of the market.

#2) You'll certainly make more money when you begin taking fewer turns and hold some of them for handles instead of ticks. There were several swings greater than +5pts up and down on Thursday, five or six of them on Wednesday.

Catching any one of those for a ride will net out far bigger gains than frenetic tick scalping. 5pt swings in the ER happen multiple times daily, every day. You needn't catch them all... just one or two (more days than not) will suffice.

#3) If and when your account balance reaches $10k, it no longer matters whether it was $1k or $5k to start. From there you can safely trade whatever reasonable size your win/loss, profit/loss scale dictates. Making $10k to $20k per month is possible in the end... getting to critical mass safely in account balance is your sole focus right now.

Equal measures of skill and luck will play a part between now and $10k balance. After that, it's all self-discipline and skill in that order of importance.

Best wishes in your quest
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great post...this is exactly where I am at...$10,000 is my next threshold...currently only making one trade per day and it is the most profitable I've been ever in trading...great post Austinp...and wow...amazing what you did...$1,000 to $60,000+...

scorpion · Mar 21, 2008

INDEX.. good luck on your trading.. most futures firms will cut you off when your down to your last 500.00 in account period. so he would only have 5-6 100.00 losses in a row actually. it can be done, he said he was using about 1100.00 for 1 contract & see what he can do. its a challenge for him thats all. you can trade 1 contract with 10 k in your account & if your not a good risk manager you can blow up all the same . managing small losses & capital preservation should be the traders # 1 priority regardless of experience or account size.. discipline to follow your gamplan can be rewarding. we should encourage others to trade their own way regardless of our own opinions, keeping it interesting & positive on this site for once.

morreo · Mar 22, 2008

Hey! Best of luck to you. Question: Who are you using to execute your trades?

fearless9 · Mar 22, 2008

Quote from mgabriel01:

if you set stop losses at 100 bucks on every trade
you have 10 trades to get it right
smaller stop losses and the odds against making money go up in my opinion
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You do not understand the ES mgabriel.

Who in their right mind would scalp the ES with a eight tic stop.

regards
f9

Tommy Ryan · Mar 22, 2008

scorpion ...

I agree that we should encourage other traders to employ their own style ... no matter how unconventional. But when that style is "kamakazie" in nature we should point it out so the individuale has the opportunity to rethink it.

Once someone comes here and lays out their "plan" I think it is fair to assume they want the comments. Otherwise, why show it to us?