ES Journal Archive (2006 - 2008)

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Quote from saxon22:

Well, since you do not know what the size of my account is, the leverage part of your answer is irrelevant. For argument sake, if my account was 500K, would trading max 60 lot be all that irresponsible?
There are many fatalities in this business, because people tend to follow and have a very limited ability to think, reason and analyze.
Nobody wants to be a loser, and everybody wants to be a winner, but by being a sheep you will never achieve financial nirvana.
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You're talking about irresponsibility?! Yes, trading 60 lots to make only a small profit based on a large amount of risk is irresponsible.

No matter what way you calculate it, 60 cars requires at minimum 30K cash (but most firms offering $500 intraday margin cap that offer at 20 cars), or with exchange minimums it's around 225K. So maybe you are somewhere in the middle. Your risk is HUGE. Risking 10% to 50% of a 500K account on a single trade using a highly questionable trade technique with small profit expectancy is irresponsible.
 
Quote from saxon22:

Well, since you do not know what the size of my account is, the leverage part of your answer is irrelevant. For argument sake, if my account was 500K, would trading max 60 lot be all that irresponsible?
There are many fatalities in this business, because people tend to follow and have a very limited ability to think, reason and analyze.
Nobody wants to be a loser, and everybody wants to be a winner, but by being a sheep you will never achieve financial nirvana.
More...

Winners do not deny reality; they face it bravely, knowing full well the risks and acting with courage and confidence nonetheless.

Hey, it's your money, but if you "don't want to think" about the leverage aspect of these instruments we trade, that sounds like a problem to me. It's only a matter of time that you are going to HAVE to think about it.

As for those who flame out trading commodities and futures, talk to a broker. She will tell you that 9 times out of 10, leverage is the reason why traders lose (in the long run). Leverage is a two-edged sword. It is easy to forget that when the going gets good.

Many of those who TRY to trade futures are highly educated, independent thinkers. Doctors, lawyers, professors (like me), And most of them fail. Hubris, ego, and bad judgment are among the reasons, but excessive leverage is the main one.

Good luck to you. :)
 
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