Hi, Been watching the markets on and off for a few years now, but, only really got serious about trading the ES this past Jan. What I mean by that is I look for the same set up, aim for my target (usually only a point) and get out. Also record all trades in a spread sheet. I made money in Jan, not much, but I was happy I was not in the hole. But I do not know where to go from here. Do I: Continue to do what I am doing, and slowly add more contracts as and when my account grows? Or do I look to stay in the trade longer, to aim for more than just a point? My thinking is just that the more times I trade, the more risk there is. This might not be the best mindset, I know. Thinking if I can continue the high win rate, and slowly add the contracts, that I would be happy with that amount of money. I usually scalp pre-market, but as of late I see all these nice swings during the open, and I feel I am leaving much on the table. Is this the greed growing in me? Should I just keep to grabbing my 1 point? Any insight into how some of you got to be profitable futures traders making decent money will be valued. Thanks
Think of yourself in terms of your future self. You think anyone rich in this game is making a living picking up dimes in front of trains?
Slow and steady wins the race. If what you are doing is working ... continue to do it. I assume you are using real money? If you make adjustments from your working system ... make only the smallest changes and well thought out. Making small amounts with a good win ratio is a fine way to begin. Keep the pace and develop increased reward methods after you have solid wins. Once you double plus 10% your account ... set aside your original seed cap and do not touch it till your account has increased 5 fold. Once the remaining acct has increased 5 fold. Take half out and do not touch it. Use the original cap as reward. Continue that ratcheting up system until you have large "seed cap" in your "don't touch pile." (20-50K is about right) If you keep steady you will make a good trader. If you get wild you will blow your original capital. Use methods to preserve original capital and a ratcheted up multiple of that. Account for taxes.
The second poster on here is most likely a losing trader. You can in fact get very rich picking up dimes in the futures market. Leverage is cheap here, so if you can consistently pick up dimes over the next few months, then I would start to leverage your strategy/ plan up. 1 point with 1 contract is 50 bucks, 1 point with 100 contracts is 5,000 bucks. I find it easier to consistently get 1 point, than to consistently get 100 points.
Thanks. My future self, hmmm, yes, rich would be good. However, if I ever get up to 10 cars, I do not consider that dimes, thats real money. As for in front of the train, well, I am more like hanging off the train as it goes. I look for a support or res level, looking to see where price is and where it is most likely to go, and wait for a break in said direction.
Thanks for the very useful reply. Yes, real money. Then, after I get my point, I use my sim account to see how I handle multiple contracts. Ok, will keep the changes small, or, I will use my sim account to see what effects they will have. Very interesting "ratchet up system", I will look into this more. But as for MM, I was thinking of adding another contract every $1000 that my account grows, and decrease the size as well if the account drops. Does this sound like a good way to grow the account while at the same time getting used to the leverage? Thanks
This was my thinking as well, but I was not sure if it was flawed or not. I know that the longer that I am in the market, the higher the chance of a move against me. I do have the control to not trade once I have my point, so it was my thinking to try to have a very high win rate, and then use leverage and be done. Hope its not just a pipe dream. Maybe I will try to do another month with this strat, and see if I can continue to grow the account with one CAR. Its tough, as I look at the $50 and I want more, but I also know I need to go about this slowly, and build a good base in my ability. Best...
That may well work ... as long as you stay steady ... continue to reduce your risk ... and maintain "seed cap" piles. Having the steadiness helps your discipline and rhythm ... holding "seed cap" piles takes pressures away.
while there isn't anything wrong with taking your profits, where are you stopping yourself out on the losers? what about using a trailing stop loss?