How about 2 wrong and 1 right x a few ? Sax, I don't mean any disrespect but sounds like you require more trading experience before making obvious flawless assumptions. One more thing, when increasing your contract size, you are best doing it by scaling in. You will pay comission per contract, regardless of entry so why not just scale them in as the trade goes in your favor while tightening the stop.
I am not sure this has been answered, as I don't have the time to read the entire thread. You trade big when you are consistently profitable trading small. For futures start with 1, move to to 2-3, 5, 10 so. It depends on what money management strategy you use optimal f, fixed ratio, etc. If you can't make money consistently with 1, then 10 ain't going help.
I agree but I disagree. It is far easier to up the contracts than to up the points. Say your goal is $1000 a day. With only 1 contract you are not going to make 20 points a day consistently. But with 10 contracts there is a far better chance that you could net 2 points daily consistently.
Great remark. I think the guy who posted the thread should experience some blood and huge drawdowns to see what we're talking about it. A 50k should not be traded with 25 or 50 contracts (if allowed by the broker) unless you have 10,20 or 40 times that money as backup on another accounts. Otherwise is gambling, not money management.
=================== Saxon22; Yes, ES contracts do move ''slow and steady'' as you wrote, so i understand why it looks so logical/easy to trade much bigger size. Frankly i dont trade 100 contracts but have traded ES contracts enough to see ''sharp & suddenly'' Fed day moves happen on non Fed days also. So things are not just limited to ''slow & steady'' And a reliable UPS[uniterruptded power supply] is NOT a prediction. Yes part of trading could be compared to simply adding more passengers on a bus as you wrote; but its really more complex like medical science/medical school & chart reading. Non diversified over leveraged trading has produced some amazing returns to be sure; & more frequently ,amazing blow ups also. Wisdom is profitable to direct
It's all about money management. Want to do 10+ contracts ? Go for it, but do it wisely. ie: Start with 1 and add as the trade moves in your favor while trailing the stop If you do the above with discipline and use your brains, if the trade goes against you, the trailing stop will not only secure profits but cover your butt.
Psych. 1 to 5 back to 1 or 2 2 to 10 back to 3 or 4 4 to 20 back to 5 or 10 10 to 50 back to 20. Why? Because you need time to clean up the vomit when you puke your guts out on your first real "drawdown"
I think that's upside-down. Setup determines risk/stop determines position size as function of account value. Dollar amount "goal" is incidental and less than useless.