I can understand you not using the first one, but your second one shows that you know very little about trading and making money and keeping it. Show me your % return per month in a years time, or even 2 years, and you will then say I now know what you were on about. Take a screenshot of this post if you really want to see the future being predicted.
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end of day swing trading(ES)
- Thread starter eyedy
- Start date
For some people it is, but for most it is not. Let's say you do 10 trades per day in the ES, and you have decided to set your stop at 4 ticks (which is very small) and your take profit at 8 ticks (which is twice your stop).Anyway, my point is that 10k is actually plenty to trade 1 ES contract.
5 losers @ 4 ticks = 20 x 12.50 = $250
5 winners @ 8 ticks = 40 x 12.50 = $500
Commissions = 10 x 2 = 20 x 2.03 = $40.60
Profit = $500 - $250 = $250 - $40.60 = $209.40
ROI = 2.09%
Commissions as % of winnings = 16.24%
OR,
Let's say you do 2 trades per day in the ES, and you have decided to set your stop at 20 ticks (which is realistic) and your take profit at 40 ticks (which is twice your stop).
1 loser @ 20 ticks = 20 x 12.50 = $250
1 winner @ 40 ticks = 40 x 12.50 = $500
Commissions = 2 x 2 = 4 x 2.03 = $8.12
Profit = $500 - $250 = $250 - $8.12 = $241.88
ROI = 2.41%
Commissions as % of winnings = 3.24%
So,
What stands out here, what is important and why?
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Sorry, I don't think we should be having this discussion in this person's journal, so I will move it over to yours.For some people it is, but for most it is not. Let's say you do 10 trades per day in the ES, and you have decided to set your stop at 4 ticks (which is very small) and your take profit at 8 ticks (which is twice your stop).
5 losers @ 4 ticks = 20 x 12.50 = $250
5 winners @ 8 ticks = 40 x 12.50 = $500
Commissions = 10 x 2 = 20 x 2.03 = $40.60
Profit = $500 - $250 = $250 - $40.60 = $209.40
ROI = 2.09%
Commissions as % of winnings = 16.24%
OR,
Let's say you do 2 trades per day in the ES, and you have decided to set your stop at 20 ticks (which is realistic) and your take profit at 40 ticks (which is twice your stop).
1 loser @ 20 ticks = 20 x 12.50 = $250
1 winner @ 40 ticks = 40 x 12.50 = $500
Commissions = 2 x 2 = 4 x 2.03 = $8.12
Profit = $500 - $250 = $250 - $8.12 = $241.88
ROI = 2.41%
Commissions as % of winnings = 3.24%
So,
What stands out here, what is important and why?
If monday's market closes near high of the day, and the price is right, I will buy one more ES per 100K at the close.
adding to winners is tough psychologically, but it is a critical part of achieving higher return.
If you are on the right side of the trend, then market will take care of any ill timed entry.
adding to winners is tough psychologically, but it is a critical part of achieving higher return.
If you are on the right side of the trend, then market will take care of any ill timed entry.
My take on daytrading:
daytrading is like playing 100 participants $300 buyin poker tournament everyday.
You can never make a million dollars doing this. rather you will surely lose more than 10K after one year. with current high frequency trading, it's like there is a cheater at each table.
whereas longer term trading is like playing WSOP main event.
Yes, it is highly unlikely you will make final table, but it is not zero even if you are a novice poker player.
if you build a good trading strategy, then your chance of making final table is significantly higher.
In trading you have to aim high. We are not doing this to make 1K-2K a month.
I know a guy who bought every dip in the stock market last 8 years.
He never sold a single share for the 8 years and took all the profit this summer.
He made more than a million, 10X more than his initial investment.
yes, he was lucky. yes he knows nothing about stock market, or investing.
But why is it possible for totally clueless guy to make a million dollars if he invest longer term but absolutely zero chance if he day trade?
because each time you trade, your chances of cumulative profit goes down.
daytrading is a losing proposition especially given the stress and screen time.
don't do it.
that's my take.
daytrading is like playing 100 participants $300 buyin poker tournament everyday.
You can never make a million dollars doing this. rather you will surely lose more than 10K after one year. with current high frequency trading, it's like there is a cheater at each table.
whereas longer term trading is like playing WSOP main event.
Yes, it is highly unlikely you will make final table, but it is not zero even if you are a novice poker player.
if you build a good trading strategy, then your chance of making final table is significantly higher.
In trading you have to aim high. We are not doing this to make 1K-2K a month.
I know a guy who bought every dip in the stock market last 8 years.
He never sold a single share for the 8 years and took all the profit this summer.
He made more than a million, 10X more than his initial investment.
yes, he was lucky. yes he knows nothing about stock market, or investing.
But why is it possible for totally clueless guy to make a million dollars if he invest longer term but absolutely zero chance if he day trade?
because each time you trade, your chances of cumulative profit goes down.
daytrading is a losing proposition especially given the stress and screen time.
don't do it.
that's my take.
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Assuming market goes upward post election, when do I exit position and take profit?
My second ES lot @ 2126, I will probably aim 20-30 points profit. It is prudent to realize half profit even though market shows no sign of reversing the trend.
For first lot, I have to consider economic calendar as well.
When is the next market moving event?
It is Dec 14 FED interest rate decision.
so, probably end of november or early december is a good timing to exit and book the profit.
That's a little short holding period for my strategy, but that's the plan for now.
It all depends on the market price action. I have to adjust my plan "REAL TIME"as market gives out "tells" day by day.
What is worst case scenario then?
market goes back down today and closes at around 2080, then I have close all position and might enter short position.
But monday's market action was convincing enough that I am confident that won't likely happen.
Market knows best.
My second ES lot @ 2126, I will probably aim 20-30 points profit. It is prudent to realize half profit even though market shows no sign of reversing the trend.
For first lot, I have to consider economic calendar as well.
When is the next market moving event?
It is Dec 14 FED interest rate decision.
so, probably end of november or early december is a good timing to exit and book the profit.
That's a little short holding period for my strategy, but that's the plan for now.
It all depends on the market price action. I have to adjust my plan "REAL TIME"as market gives out "tells" day by day.
What is worst case scenario then?
market goes back down today and closes at around 2080, then I have close all position and might enter short position.
But monday's market action was convincing enough that I am confident that won't likely happen.
Market knows best.