LOL... come on overnight. On rollover day, you sell your March contract, even if the loss is at 2k, and then you buy the June contract. Yes, the price will be off maybe 10 or 20 points because of the whole dividends thing, but its a non issue in the whole grand scheme of things.
doom
- Thread starter dozu888
- Start date
And then you have to hope the June contract will rise up from that March entry point more than the loss you took, and pray it does not tank below the margin requirement after your loss
10K account. Dec 20th, buy March NQ at 9000. March 15th it has dropped to 8000. Yer out 2K after you "roll" into June contract long at 8000. Now you are long with 8K in the account at 8000. So now you hope the June contract gets back to 9000 so you can get back the 2K you lost. But no, by Jun 15th the market is down to 7000. You now roll into Sep contract long at 7000.
You are now down 4K in the account. You have 6K left to trade with. And we're not even getting into the situation of people having high lever against their NLV and where margin calls can happen.
This may seem an unlikely scenario to you, but what I am pointing out is...It can happen.
And it certainly happened to any bears who tried to roll shorts.
Eventually, you will run out of money if the direction changes for a prolonged period of time.
how long have you been trading?
With futures? Longer than you, it seems. Have you seen my journal, where I put my practice into reality?
Yap, I am eagerly waiting for them to offer me negative interest rate (like some of you ETers who live in Europe - e.g. Denmark) so I can generate some income from borrowing all these mortgages.I saw predictions that if Trump wins in 2020...he'll put more pressure on the FED to lower rates...trying to get it to zero.
You can then mortgage a 2nd & 3rd house as an investment in QQQ & AAPL.
https://www.chip.ca/reverse-mortgag...rtgage/reverse-mortgage-for-canadian-seniors/
wrbtrader
Speaking like a true trader.
Like buying month lottery tickets?
dude you can't answer a straight question now? I started in 1999 and now I see the market crystal clear... reason I ask is it seems the market appears foggy to you.
You admitted you are a non-trader. So which is it? Do you trade or not? I post my real trades in my journal. Do you post real trades in your oft-touted "trading is easy" thread? I forget.
To answer your question, I started real trading in 2015. Sorry, I forgot you asked that question in this silly line of questioning.
Yes, you are absolutely right with what you describe, so at least we have the mechanics right.
Now here is the thing with all of this. What has to be happening in the world where the NQ goes from 9000 down to 7000? Remember, dozu has personally guaranteed your trade! LOL... but all kidding aside, the FED is basically propping all of this up. This is the whole point of this trade.
When most people blow up its because they don't have margin, as you point out, but its because they are trading 1 NQ contract with 10k, not 1 mNQ. Its like trading 1 NQ with a 1k account.
I wouldn't suggest doing this 10 years ago, but the market now is a rigged market. For a 50% drop to happen, there are much bigger problems than your lost 10k account. Will it sometime in the future drop 50%? Yes, I think so, but not tomorrow, or next week, or next month. When you see reports of the FED giving hedge funds money, you know they will paper over any issue going forward. So the NQ going down to 8000 would be a great buying opportunity to average in.
Now I do for sure think that buying now will mean sitting through some kind of drawdown, but I do fully believe the markets will be saved and hit a new high.