I find your comments entertaining, Rickshaw, but I assume they are said half-seriously.
This thread was started in 2007 and we all know what happened in 2008. And it's only been a year since the last 20 % correction.
We need to differentiate between trading leveraged futures and long-term holding stocks in a portfolio.
Initial margin on one ES contract is $6930.
ETH the market was down 56,75 points from the RTH Close yesterday.
56,75 x 50 = $ 2837,50
For simplicity, let's say you utilize 10K per contract. This means your account would have been down 28,38 % overnight. You would have been roughly 100$ from a margin call/forced liquidation.
Unless you're continuously reducing risk, i.e., trading the same amount of contracts as your account grows, going long only without a stop is a great way to eventually blow an account. It works until it doesn't.
