I've seen Mike on Twitter and who are these friends? Vendors. Vendors. Vendors.
FINALLY passed TopstepTrader's Combine!
- Thread starter JamesEM
- Start date
For the simple reason that holding through a close allows a chance for recovery on a position that may be unrealized negative at the market close. So rather than dump a position for a loss before market closes, hold it, and next trading day the price could recover for a profit. If next day it is still negative unrealized, you hold it again overnight to wait for a recovery to profit. Over and over and over again until you hit profit. This is a complicated issue I am looking into.
Since TST does not allow holding through a close, my results are not possible through them. Many trades go for a couple of days to couple of weeks.
That's right. There is a strong tendency for the price to reverse toward the mean from day 1 to day 2. However if the price breaks this habit... Then there is a high probability for the market to screw you up =P So it's a double edged sword... Even if they would allow you to hold overnight... I don't think they provide enough capital for that heat level. You should be able to handle at least 40Pts downisde ... (I am talking about ES)
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Indeed. 40 points in ES is 160 tics I believe, which is $2,000 on one contract. I'm working a bit larger, trying to survive 40 points down on CL, which is $40,000. But at this point, in order for CL to drop 40 points, it would be at ~5$ per barrel. Is it going to ever get that low? Uhhh...no. So it is survivable, so long as you are far enough out in trading months to recover from a huge drop.
But to survive a $2,000 drop in CL is 200 tics. So many variables to consider. *sighs*
Yea, I did that in my youth "once", I thought instead of getting out at the close with $300 LOSS in soybeans on each contract on a day trade, it will turn around tomorrow, three limit down days in a row and lost $75k total. Let me tell you, I was suicidal even beyond when I was able to get out. I don't recall how many trips I went to Credit Union to get loans to bail me out putting up houses for collateral early on. Yea, that was one lesson learned for me, if in the hole by the close, GET OUT, can always get in during the night at better price. Violation of my rules, it like taking a Concrete block and tossing it in the air and just wait till it hits me.
And if you were wrong when do you cut the loss ?
Trading and hoping are not the same
A day trade that becomes a swing trade because you can't divorce your ego is a ticking time bomb.
I do not go into a trade as a day trade, I go into it as a position trade.
How may contracts were you in with that position that in 3 days you were down $75K?
It was a time I didn't even know about limit days and broker who was "helping" me had a day longer than me, had 15 contracts on. End of first losing day was getting margin calls, LOL. Now I laugh bout it....