25 Rules of Trading Discipline

Quote from ZAL:

The answer to my question is zero. There are no successful one lot traders (at least that I'm aware of).

Trading a one lot is like training wheels for a toddler learning how to ride a bike. It provides one with a certain confidence level that one can achieve the next desired level.

Let's do some simple math. If you could make 4 full tics in the Bond Futures market every day of the year then at the end of the year you would have gross trading profits of approximately $30,000. Now if you subtract the expenses of your trading business (let's say $2000 per month) you're left with $6000. After you pay Uncle Sam there's not much remaining.

Making 4 full tics per day in the Bond market for every day of the year is exceptional performance. If you can do it then you you're a great trader. Unfortunately though, you're not a wealthy trader.

The flip side is that if you can make the same 4 tics a day while trading 10 contracts per trade then at the end of the year your gross trading profit is $300,000 less the same expenses of $24,000 less paying Uncle Sam. You're after tax net would be somewhere around $200,000.

The point is: once your able to consistently trade profitably with a one lot it is essential that you increase your trade size. Get rid of the training wheels.

The Bond market is a much better (easier) market to trade than the ES. Set a goal for yourself of 4 full tics per day for ten days. If you can achieve your short term goal then you did it by skill, not luck, and your should increase your trade size to a 2 lot.
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Quote from ZAL:

The point is: once your able to consistently trade profitably with a one lot it is essential that you increase your trade size. Get rid of the training wheels.
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One's position sizing is in direct correlation to your risk management.

The truth is it really doesn't matter what size someone trades ... if they trade well they will be able to increase their lot size as their account grows ... and if they do not trade well it really won't matter as it will all be lost anyway.
 
Quote from Khartoum:

Question from a noob: Do you think the bond is better and easier to trade than ES as ZAL stated?
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If that's directed at me the answer is YES ... but then again, I believe most other contracts are easier to trade than the ES.
 
Quote from MandelbrotSet:

If that's directed at me the answer is YES ... but then again, I believe most other contracts are easier to trade than the ES.
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It was an open question and thanks for answering. I suppose you don't trade ES then?

It strikes me as odd that in the free PalTalk rooms, 90%+ trade ES, not the bond. Why wouldn't traders naturally gravitate to the easier market?

I guess I need to understand what "easier" means in this context. :confused:
 
Quote from NakedNote:

LMAO

I suppose on your second post, you will give him a BJ ?

NN
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LOL, fellas, fellas.

Lets try to have a remotely reasonable discussion about trading shall we? :D

The software is interesting and I think TradeMaven is prolly a decent place to go for the new traders (notice I did not say nOObs).

Trading has a very steep learning curve, and if they can help someone along I got no problem with it.
 
Quote from atticus:

That is two new aliases for today. He just PMed me as "Khartoum"
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I have no aliases. I am a new member. What is wrong with you people anyway?

I made an honesty inquiry to you, atticus, after reading another thread. What's with the paranoia?
 
I was under the assumption that the ET forum had a slightly higher caliber amongst its members... guess there's alway going to be a miserable soul in the bunch no matter where you go. For all the guys, that responded with the school yard bully comments - there's no shame in gratitude, fellas. I don't take offense thought... carry on.

PS. If anyone is interested in reading the "Mantra" ZAL is talking about, I could upload it and post the link here.

Let me know,
MM
 
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