1-2 ES points a day

[gnome]

Quote from Pekelo:

Come on man, you made a mistake, acknowledge it as a real man!



Sure you did. #9 post in this thread:



You just calculated the return based on the FV. Hello?? Facts are stubborn things.



Will do skipper. By the way what rationale? My explanation how leverage works? You were wrong on the first one you are wrong on this one too....

1. I said what I said. I just didn't say what YOU said I said.

2. Sorry about the leverage "nonsense"... My old eyes had read your "1:50" as "1.50" (Mortals, however, would describe that leverage as "50 x 1".)

 

[steve46]

Quote from Jimmy Jam

"At the more advanced levels of trading, this information can be used to substantially decrease your risk will increasing your return, and can be used to grow your account at an exponential rate."

-----------------------------------------

What a wonderful comment. I am sure the original poster would benefit (so would the rest of us) if you will take a moment to show us exactly how that works?

Steve

 

[AAAintheBeltway]

Quote from esnewbie:

Thanks for the links Steve.

My plan is to risk 15% of my account per trade with a stoploss of 50% of the ATR14. I deposited 10,000 since it seems this is a large enough amount to cover my drawdowns, yet small enough to not be significant in case I blow up the accou,nt.

I hope you meant 1.5% per trade.

 

[smilingsynic]

Quote from esnewbie:

.

My plan is to risk 15% of my account per trade with a stoploss of 50% of the ATR14. I deposited 10,000 since it seems this is a large enough amount to cover my drawdowns, yet small enough to not be significant in case I blow up the accou,nt.

This is way too much risk for a newbie, imo.

10K for a contract also seems too low for a newbie. I would suggest working with shares of SPY first.

Good luck!

 

[steve46]

I have to agree with the others who point out that the risk per trade seems excessive for a new retail trader. Acccepting 15% risk on a per trade basis means that the trader is out of business after 6 loses. At that point, he has only 10% left in the account.

If one were to take trading seriously, it might make sense to calculate the odds of having 6 consecutive losing trades. Although the odds are not great, it certainly can (and does) happen.

Hey, I've done my good deed for the holiday. You guys can carry the ball from here.

Good luck
Steve

 

[Cesko]

Quote from fearless9:

Even though we are openly discusing this subject ( thanks to esnewbie), 95% of traders will continue to lose their money.

Obviously A followed by B will not yield C.

Look at his following post. Having no clue whatsoever.
I think it's good that things are the way they are.

 

[fearless9]

Quote from esnewbie:

Thanks for the links Steve.

My plan is to risk 15% of my account per trade with a stoploss of 50% of the ATR14. I deposited 10,000 since it seems this is a large enough amount to cover my drawdowns, yet small enough to not be significant in case I blow up the accou,nt.

Let me ask you this esnewbie, if I may.

'do you truely believe that you can in a manner that will result in no losing days'

 

[JimmyJam]

Quote from steve46:

Quote from Jimmy Jam

"At the more advanced levels of trading, this information can be used to substantially decrease your risk will increasing your return, and can be used to grow your account at an exponential rate."

-----------------------------------------

What a wonderful comment. I am sure the original poster would benefit (so would the rest of us) if you will take a moment to show us exactly how that works?

Steve

... and here's Steve-O, asking for help from me, yet again.

It's really too bad that a guy who doesn't even have a college education can dance circles around a so-called college professor.

It just goes to show you that this is anyone's game.

JJ

 

[bighog]

Many do not understand that % of return from trading ES is meaningless.

Look at it this way: Lets say you open an account for ES with 50 K and trade that only. With many brokers out there you can trade with margins of a mere $500 a car. So you could trade anywhere from 1 car to 30 as a DAYTRADER and NO overnights and play your strategy and tactics without worry if you use STOPS naturally.

Forget about silly percentages of return. At end of month, or weekly.....sweep the account and start over with the same 50k.

To say anyone can compound a few billion account year over year and make returns of 20% annualized to indeed rare. Therein lies the real gist of trading futures, you forget about compounding....you do what you do daily ..........the rest will fall in line.

In futures you do not do silly %of returns like stock traders....they are yesterdays game....... .. Just ring the register weekly or monthly and start over...consistency is the name of the game in ES, not %'s. ..

 

[esnewbie]

Quote from fearless9:

Let me ask you this esnewbie, if I may.

'do you truely believe that you can in a manner that will result in no losing days'

Fearless,

I understand your concern with the risksize. While I am not looking for 100% accuracy, my expectation is to be on the right side of the trade most of the times. Furthermore, if I am wrong, I will stop and reverse to reduce the loss incurred.

In my paper trading, almost always I have been able to reduce the loss by reversing for 1/2 the loss amount. I would then get on the sidelines for the rest of day since I am clearly wrong on the direction.