ES Short signal tonight 12/05

[increasenow]

forget all of this talk...ES daytrade margins at Global Futures are $300...

 

[smilingsynic]

Quote from increasenow:

forget all of this talk...ES daytrade margins at Global Futures are $300...

A preoccupation with daytrade margins suggests a problem with overleverage.

 

[TradEStar]

Quote from increasenow:

forget all of this talk...ES daytrade margins at Global Futures are $300...

$300 is day margin ONLY.

 

[increasenow]

Quote from TradEStar:

$300 is day margin ONLY.

exactly and just my point...WHY hold overnight?...does not make sense...just trade intraday at the $300 daytrade margin...this is the whole benefit...MAX leverage per your dollar!!

 

[TradEStar]

When I have big signals I take them..thus yearly ending P&L is much greater..

That is more important to me than margin rates.

 

[increasenow]

Quote from TradEStar:

When I have big signals I take them..thus yearly ending P&L is much greater..

That is more important to me than margin rates.

great!..go for it...do you prefer ES,NQ or YM...just wondering your favorite to trade...thanks

 

[thomfergu]

i can guarantee 100% that you newbie will lose all your money with $300 margin

 

[increasenow]

Quote from thomfergu:

i can guarantee 100% that you newbie will lose all your money with $300 margin

not a newbie

 

[TradEStar]

Quote from increasenow:

great!..go for it...do you prefer ES,NQ or YM...just wondering your favorite to trade...thanks

I like the ES and DAX the best for overnight..but I did have a short trade with the ER2 last night that made a little money too.

BTW, I trade 1 contract per $5000.00 in my account, so I do not care what the margin rate is. Over leveraging is not needed imo to make very good profits.

 

[El OchoCinco]

Quote from TradEStar:

Yes it was a good night..my position trade had the last 20% stop out at b/e, and my accordion has been running all night and I still have it on today..it is doing very well.

I do nto understand that if you had a nice major short signal why did you scalp for 2 points most of hte position right away when your initial risk was 2 point stop.

Assume you did 10 contracts with a 2 point stop with a risk of $1,000. You took 6 contracts of at 2 points for a profit of $600. Then I think you took another 2(20%) at 1490 for a profit of $500 and left the last 2 (20%) to run with stop at be which you got hit on unless you bailed this morning which I did not see.

So you went short at 1495 with a major short signal and took off most of your position. If you held all 10 for at least 10 points which would be expected given the nature of your shrot signal you would have grabbed $5,000. If you took 6 contracts of at 1485 you would have had $3,000 pocketed.

So you risked $1,000, assuming you did 10, and took profits quickly. One thing I have learned and am still learning is if you have that kind of entry, let the position run before taking off profits sine you know what your risk is already. If you are going to risk $1,000, look for higher reward for that risk. In the long run if you let those run then a few winners can still put you way ahead of a few losers.

Calculate your positions if you did not take so much off right away. I just figured with your first post you were going to ride this down and was surprised that you immediately took off most of hte position with 2 points in the after hours market right away.