There is a rather common myth about compounding the account regardless of how many "handles" you take out of the ES and other futures. It sounds easy enough but in real world it is harder said than done. Taking a small loss with a single car is not the same as taking a small lose with 100 cars. How would you handle a SERIES of small loses trading a hundred cars? How about 200 cars? See what i mean?
Trading with large size is hardly a possible goal for most traders. Consistent is first goal, only then can one even consider more cars. Compounding is a myth except in money market interest paying accounts.
Now back to the original question: 5 handles a day minimum is a proper goal to shoot for in the daily mission. Anything less and you are not trying to get the intraday swings. Do not trade for ticks or a handle here or a handle there. Go for the levels. There will be days when getting 5 handles will be a real chore, some days you will miss. Remember to NOT give previous days profits back. A bad day when you are experienced enough is to break even. Some days will be a lot more handles if the mkt is as it has been since last June because the financials once again found a way to blow themself up.
Ok, about compounding once you get consistent. You can sweep the account monthly and start each month with same account size. Then and only then when you are conditioned how to trade what the mkt throws at you will you even consider to increase the size of the trades. This is not a merry go round game, trying for the brass ring and you might fall off your wooden horse. Consistent, thats key.
Trading with large size is hardly a possible goal for most traders. Consistent is first goal, only then can one even consider more cars. Compounding is a myth except in money market interest paying accounts.
Now back to the original question: 5 handles a day minimum is a proper goal to shoot for in the daily mission. Anything less and you are not trying to get the intraday swings. Do not trade for ticks or a handle here or a handle there. Go for the levels. There will be days when getting 5 handles will be a real chore, some days you will miss. Remember to NOT give previous days profits back. A bad day when you are experienced enough is to break even. Some days will be a lot more handles if the mkt is as it has been since last June because the financials once again found a way to blow themself up.
Ok, about compounding once you get consistent. You can sweep the account monthly and start each month with same account size. Then and only then when you are conditioned how to trade what the mkt throws at you will you even consider to increase the size of the trades. This is not a merry go round game, trying for the brass ring and you might fall off your wooden horse. Consistent, thats key.
