Trying to trade 5 yr into the penthouse

Discussion in 'Trading' started by michael21, Jul 22, 2011.

  1. Hey guys I've progressed from having a system that I didn't have the stones to implement to being able to pull the trigger.

    My new problem is as follows: I have a system that I can expect that if I follow, to pull in 12-14 ticks a day but since I just started I'm trying to be smart about it and I'm only trading 1 lots. I'm trading the 5 year at $7.81 a tick.

    On a good day I'll finish up $50-$80 so all the books say that this is the way to go...slow and steady and yes when the time comes for 10 lots thatll be close to $700-$800 a day but a. How do you guys deal with it? And b. I'd like to think that there is no reason I can Not become a millionaire but I'd need to be trading 100 lots to get close which could be years away. So how do I get into the frame of mind to be cool going 8-3-2 and only have like $50 to show for it?
  2. pt199


    Which one is 5 year??ZN or are you trading a ETF that mirrors the 5 yr??
  3. Cmon fellas let's go.
  4. ZF.
  5. Stop thinking about becoming a millionare, concentrate on maximizing returns when the market is running hard your way. In otherwards, consider putting a little more in the pot when a trade is trending hard your way, just make sure you don't get cocky or "mrs market" will slap you like a red headed step child.
  6. kxvid


    It is possible but you have to be making money on a risk-adjusted basis. Otherwise, it will never happen.
  7. feng456


    you said it urself...slow and steady
  8. Trade one lot. Only.

    When your account size grows by a predetermined amount, like say your starting account size is $10,000 and you are trading 1 lot making $50-80 a day like you said. When your account size reaches $15,000 then trade two contracts. If you win every day that will be a minimum of 100 days ($50 a day * 100 days = $5,000).

    When your account size reaches $25,000 trade 3 contracts. At 2 contracts a day ($100 a day) this will be another 100 days ($100 a day * 100 days = $10,000).

    When your account size reaches $35,000 trade 4 contracts. At 3 contracts a day this will occur in about 67 days ($150 a day * 67 days = $10,050.

    This will have taken about a year (267 days which is just over the number of trading days in a year), during which time your account will have increased by $25,000. Pay your taxes and continue with this progression the following year.

    This assumes you make an average of $50 per day like you said. If your average is $50-80, then it will take less time.

    Err on the side of going slower rather than faster. When in doubt, use fewer contracts.

    This is how you do it.

    I don't know what the margin requirement is on your contracts, but stick with 1 until your system has a proven winning track record. People get in trouble cuz they're like "Hey I have a $5,000 account I'm gonna trade 5 or 10 ES at a time just cuz I can!" and they blow their accounts after a few bad trades.
  9. James


    For one thing I don't recommend trading futures if you have a certain account if you have 5,000 dollars in an account or even 10,000 futures may not be the best place to start. Going into forex is much better since trading 3 lots of eur/usd is much less risky than trading 3 contracts of ES. You can have a larger stop as well.

    If you have a system that gives you an edge, you have accomplished 25% of the problem...Now you have to implement it. And implementing it is difficult if you have your account fluctuating a lot with every tick. Do it the right way and you will eventually succeed.
  10. Why on earth would he begin trading 3 ES contracts if he had a $10,000 account?

    Also, futures is regulated. Forex is a giant scam.

    I'm not seeing any reason to trade Forex.
    #10     Jul 25, 2011