Does Technical Trading Really Work?

debitspread said:
Not sure whether to laugh or cry... In the emini, you can lose $400 in one second.
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However having too wide a stop or scaling into losing trades can doom people who regularly trade 1 ES contract per 20K even, so this is hard even for non-over-leveraged traders. That's why day trading teachers should be ethically and legally required to use a third-party vendor to verify their P&Ls prior to going public.
 
Q3D said:
However having too wide a stop or scaling into losing trades can doom people who regularly trade 1 ES contract per 20K even, so this is hard
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Sure, there are plenty of ways to lose, but trading at max "day trading margin" [so-called] pretty much guarantees it.
 
romik said:
Ask Surf for guidance perhaps?
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I am usually in full agreement with Debit-- he has taught me much over the years--

However, I must disagree with him on this point. $400 is 80 points in the YM with a single contract. $500.00 or $400 is plenty of margin for day trading--
 
How should I manage my risk, legendary traders, with my 20 contracts on $400 margin w/an $8,000 account balance. 20 contracts w/a stop too tight will attract traders on the DOM even on the ES but a stop too wide could wipe out most of my account.
 
Q3D said:
How should I manage my risk, legendary traders, with my 20 contracts on $400 margin w/an $8,000 account balance. 20 contracts w/a stop too tight will attract traders on the DOM even on the ES but a stop too wide could wipe out most of my account.
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If you don't know where to place stops then you shouldn't be trading.
 
I don't know where to place stops with 20 contracts and a 8K balance. You're suggesting you do, so offer some hypothetical advice.
 
I always place stops below current reaction low on whatever time frame is being traded (when buying). With 8k I wouldn't be trading 20 lots, 1 lot.
 
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