ES Daytrading: "only 1 trade per day" or "1st trade a loss, rest of day a loss"

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A true ET gem here..thanks for this post on behalf of everyone.

Good trading to you.


Quote from osorico:

As someone said... you just don't get it dude.

Here's the deal Increasenow...
The trading-day consists of making trades. The number is irrelevant, and should not be fixed for the sake of having a fixed number.

First what you need to understand is that 100% winning (or losing) TRADES in a day is in outlier. It is not normal. Contrasted against 100% of trading DAYS being winning (or losing) which is neither an outlier nor is it normal. It just is. Case in point 10 trades in a day 8 winners, 2 losers, the day is a winner. Next day, 10 trades, 8 winners 2 losers, day is a winner. Next day, 10 trades, 2 winners 8 losers, day is a winner. Next day 10 trades, 10 winners, day is a winner. Next day, 10 trades, 5 winner, 5 loser, day is a winner. Trades provide diversification and dispersion.

By limiting yourself to 1 trade a day you are guaranteeing yourself that each one of your trades will be an outlier (100% of trades in a day being winner or loser) and the cumulative result on winniing and losing trading days will be no better than the probability of your methodology. If your methodology is say 70/30, then you should prepare to withstand a MINIMUM of 30 consecutive losing days, making 1 trade per day.

What you need to do is trade. The number of trades is irrelevant. What is important is that you employ discipline against the loser outlier (100% of trades in a day) and inevitable string of losers. And too that end, you must find a number lets say $250 for example that is a MAXIMUM LOSS for a day. It doesn't matter if it's in 1 trade or it appears after you've generated a string of 25 losing trades in a row. Once the number is hit, THEN you are done for the day. Period. Note that this "discipline" does not exist in any way on the upside.

If $250 is inappropriate (too large or too small) for your account, than find a number that works. But it must be realistic. Wanting to profit $500 and willing to risk $10 to do it is not a calculated risk. That is a lottery game. Or maybe I am just underestimating your trading ability. I mean last week you were trading CL, DAX and YM.

Osorico
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Quote from increasenow:

Swordsman, Osorico, Thundedog, Gnome or everyone else...thanks, really thank you for taking the time to answer my questions...you guys have HIT IT RIGHT ON THE HEAD!....

question...on average...how many trades (roundtrip) do you guys take per day trading the eminis?...5,10,20,50,100?
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5 is rare. 2 or 3, most common.
 
Quote from gnome:

5 is rare. 2 or 3, most common.
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Of course, trade frequency is dependent on method and time frame. And unless increasenow is trading in a similar fashion, then any comparison he draws is about as useful as comparing apples to oranges.
 
Quote from Thunderdog:

Of course, trade frequency is dependent on method and time frame. And unless increasenow is trading in a similar fashion, then any comparison he draws is about as useful as comparing apples to oranges.
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hey thunderdog..how is your NQ trading going?...still focused on the NQ solely?...thanks!
 
traded my first ES mini future today and made 307...

will start trading 1 emini futures maybe once every 15 days...
 
Quote from increasenow:

Swordsman, Osorico, Thundedog, Gnome or everyone else...thanks, really thank you for taking the time to answer my questions...you guys have HIT IT RIGHT ON THE HEAD!....

question...on average...how many trades (roundtrip) do you guys take per day trading the eminis?...5,10,20,50,100?
More...

I was smiling, my head was swelling... and then I read your question!

You just don't get it dude. tsk tsk tsk :(

Osorico :)
 
Quote from increasenow:

thanks for sharing your experience...wow..be nice to trade with $130K!!!
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I trade stocks, which seems to require more $$ than trading e-minis. I'm planning to explore it though.
 
Increasenow, seriously, stop with the questions. What anyone else does is really of no matter to you. Is it any wonder you haven't sat down for a whole day of trading yet?

Seriously, you may have ADD or some other attention disorder and I'm sorry if its really hard for you to buckle down. It's easy to ask question after question after question. Its hard to spend 6 1/2 hrs everyday watching the market and then working several more hours after the close for review.

Do the work! I can't stress this enough. If you don't, this exact date 5 years from now will have you right here asking how many "cars" so and so throws at the ES.
 
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