I am thinking about going short in the YM late today 03.22.07
- Thread starter ElectricSavant
- Start date
Bit ... oening a position with 2 or more cars is scarey. Im not real sure i have enough experience - only been focused on the YM
for about 1.5 yrs.
What i have been doing sometimes though, is holding an open contract while i trade another one along side. And, a few times i have even played two cars along side - 3 cars open at once.
For my experience level with the YM thats a lot of risk.
Piero, this has got me worried ..." in this discipline the one toughest challenge. but has to be dealt with or there'll be trouble: serious trouble." Im hoping you would say a little more when you can.
regards ... rj
If you're concerned about the risk of trading more than one contract, ask yourself this question:
How much money do I need to trade 1 contract?
OK, now, when you have twice that amount, add another contract.
Then, when you have three times that amoung add a third contract.
***
Example:
I need $2,000 to daytrade one YM contract.
So when I have $4,000, I will daytrade 2 YM contracts.
If the initial position is stopped out and my account goes back down to $3,900 I will continue to trade 1 contract until I reach my benchmark again.
The same for 3 contracts when your account hits $6,000.
Etc.
How much money do I need to trade 1 contract?
OK, now, when you have twice that amount, add another contract.
Then, when you have three times that amoung add a third contract.
***
Example:
I need $2,000 to daytrade one YM contract.
So when I have $4,000, I will daytrade 2 YM contracts.
If the initial position is stopped out and my account goes back down to $3,900 I will continue to trade 1 contract until I reach my benchmark again.
The same for 3 contracts when your account hits $6,000.
Etc.
MandelbrotSet ... Of course, you are right although some advocate having as much as 5k per contract. I lean more to the calculation you stated. For example, the PureTick guys advocate
the 5k amount per car.
As far as my over all acct situation im ok: 31.3K size
leveraged at 0.23 today. I could easily swing a lot more contracts as far as margin goes. I have various concerns i may need to work on. Im getting way to much of a short bias the last six months. 90% of my trades have been shorts. Its true that ive made some $$ and paid off my "YM tuition" several months ago.
Market has been trending down which can cover me if i make a sloppy short entry sometimes so im very much questioning my
true skill level. Thats whats making me reluctant to size up a bit when opening a trade. I dont necessarily always want be a piker though.
