1-2 ES points a day

Quote from Pekelo:

"... why would the face value matter? It is your starting account and the margin that matters....
More...

Face Value matters because it's the value of what's being traded.

For you to ask such a question makes me wonder whether (1) you are "slow", or (2) you don't have enough trading capital to cover the face value of 1 ES.
 
I knew I was going to regret asking it, but this is getting stranger:

Quote from gnome:


For you to ask such a question makes me wonder whether (1) you are "slow", or (2) you don't have enough trading capital to cover the face value of 1 ES.
More...

I MUST BE really slow today. Please explain it to me, when I sign up for a futures account with 5 K, does the broker expect me to cover the face value?? Obviously not.

Again, we both made $50 x 250 = 12500 at the end of the year on the same capital of 10K. How come our returns (according to you) are different??

You know what? Nevermind....

P.S.: Here is another approach so even FAST people like you can understand it:

If your futures account is let's say 3K, how much money can you lose, 3K or 70K???

Thank you....
 
Quote from Pekelo:

I knew I was going to regret asking it, but this is getting stranger:



I MUST BE really slow today. Please explain it to me, when I sign up for a futures account with 5 K, does the broker expect me to cover the face value?? Obviously not.

Again, we both made $50 x 250 = 12500 at the end of the year on the same capital of 10K. How come our returns (according to you) are different??

You know what? Nevermind....
More...

Oh come on... even YOU can figure out that returns based upon leverage are so highly variable as to be meaningless.

If you're trading on high margin, you're taking high risk.. with an equally high risk of disaster. So What if you get away with it for a while? High Leverage = "one misstep from ruin".

Whatever calculation you make based on leverage is likely not applicable to anything in the future.
 
Quote from Pekelo:

If your futures account is let's say 3K, how much money can you lose, 3K or 70K???
More...
:confused:

http://www.cftc.gov/opa/brochures/opafutures.htm

What are my contractual obligations?

Individual Account. When you enter into a futures or option contract through an individual account, you are required to make a payment referred to as a "margin payment" or "performance bond." This payment is small relative to the value of your market position, providing you with the ability to "leverage" your funds. Because trading commodity futures and option contracts is leveraged, small changes in price, which occur frequently, can result in large gains or losses in a short period of time.

Each day, your broker will calculate the current value of futures and option contracts held in your account. If the equity in your account has declined in value to the "maintenance margin level" (approximately 75 percent of the amount required to enter into the trades originally), you are required to provide more margin money to restore the initial margin level (this is called a "margin call"). This eliminates the need to make repeated margin calls when daily price changes are relatively small.

If you fail to meet a margin call within a reasonable period of time, which could be as little as one hour, your brokerage firm may close out your positions to reduce your margin deficiency. If your position were liquidated at a loss, you would continue to be liable for that loss. You can, therefore, lose substantially more than your original margin deposit.
More...
 
Quote from esnewbie:

Hi all,

New to futures and am setting what I hope is a reasonable goal of 1-2 points a day. I'm looking into TICK strategies, Pivots and A/D. Would love some feedback on what might be useful in my goal.

BTW, I would like to automate this since I work fulltime and cannot be watching each tick during the day. Ideally, something like put a limit buy near S1 or some area of confluence with and have a conditional sell 1-2 points away. Please let me know if you guys think this cannot be done. It seems reasonable to me, but I would like your opinions
More...

If you want to make serious money you can't delegate to any trading system

Trading systems are 100% bullshit, Large drawdown, optimization, long periods without profits

Only newbies and unsuccessful person use trading systems

Trade charts with 15/30 minute time frame, use pivot points, other support and resistance lines, the OHLC of the previous two days, weekly high, weekly low. and TIME AND SALES filtered (10/100).

I make 20/25 point per week

Trading is definitely a serious job

You must have good reflexes and nerves of steel
 
Quote from gnome:

Oh come on... even YOU can figure out that returns based upon leverage are so highly variable as to be meaningless.

If you're trading on high margin, you're taking high risk.. with an equally high risk of disaster. So What if you get away with it for a while? High Leverage = "one misstep from ruin".

Whatever calculation you make based on leverage is likely not applicable to anything in the future.
More...

This could not be further from the truth.

Good trading all,

Jimmy Jam
 
You must log in or register to reply here.
Back
Top