Quote from glassinc:
Anthony,
Hello, since you're short the NQ & called the top, which has now went against you by 20 pts. How much trading experience do you have with futures? May you have been prudent in allocating only a small % of your total capital into a trading acct., say 10-20%, preferably 5-10% would be the wisest.
I'm going to make an assumption that 1: The bulk of your $$ were made during the Bull Market, by buying & holding. 2: That your swing trades consisted of holds lasting weeks to months. 3: Since your successful experience over time with equities, you now are qualified to trade leveraged instruments?
Don't get me wrong, I would hope that your endeavor brings you nothing but success. However it'll come with a price, either thru a shortened learning curve, & limited capital losses thru preparation, & strict discipline.The other path would be a lengthier learning curve with significant loss of capital, which could bring about a psycholgically damaging effect, & possible elimination from trading altogether. You will ultimately make the choices or lack of, which will determine this outcome?
Successful fulltime equity traders are a vast minority lot, successful fulltime futures, & option traders are an even smaller % of that lot. You have just entered into that arena, be VERY aware & prepared, I can assure that the competition will be! It's a ZERO sum arena that leaves little room for error. This may @ first glance seem like a scare or fear tactic, IT IS NOT! It is about AWARENESS, FUTURES trading will open your eyes like never before. Again being alert, & aware will have it's reward! While there is an element of fear in that which you don't know, it can be used like other tools to ones advantage when recognized, & controlled while on the journey.
This is your first step on that JOURNEY, may it be 1 of 1000s, & not of dozens.
Be Disciplined, Take Care, & God Bless!
L8R Kelly
