I can not trade futures in this enviroment
- Thread starter myminitrading
- Start date
Stock - I have found for me that just trading the AM (8am-noon EST) is plenty in one day. I found that when I try to trade all day, I just get exhausted and end up taking bad trades simply to take a trade.
By limiting myself to 4 hours a day of trading, I know that I have to remain focused during those 4 hours or I have to wait till the next day. As long as I remain focused and do my job, there's more than enough trades available to me during those hours on the 3 markets I trade (YM, NQ, and EC currently).
Smart choice.
I trade from the beginning of 2005 and didn't wintess such a market before.
First day of it (27th) got scared of such volatility -> did some stupid moves (was not disciplined with my method) and lost some money.
Later the same day readjusted and it became better.
Next day I began to like it and after yesterday I think I now know why many people talk about "how easy it was to make money around 2002".
When you get used to this increased volatility this market offers more profit per cotract (because when you let profits run they run much further, thus R/R increases) and there is significantly less noise and more real moves.
First day of it (27th) got scared of such volatility -> did some stupid moves (was not disciplined with my method) and lost some money.
Later the same day readjusted and it became better.
Next day I began to like it and after yesterday I think I now know why many people talk about "how easy it was to make money around 2002".
When you get used to this increased volatility this market offers more profit per cotract (because when you let profits run they run much further, thus R/R increases) and there is significantly less noise and more real moves.
Very reasonable conclusion!
I do something similar, because US markets trade from 8:30PM my time and I simply get sleepy in the second half of US trading day.
So do the following: wake up at morning and look at HSI for some time (going to begin trading it soon), then have lunch, go out to walk a bit etc and at 2PM get back to trade DAX for a couple of hours.
Then have time with my family again and finally in the evening trade US markets.
This way there is always enough concentration and more than enough screen time and trades. Plus one more very important point: you get a feel and a view of world's global market trends, not only a part of it, so when US session comes you already have a very good view of today's sentiment.
Having full concentration for six hours in a row is a difficult task for me. Maybe it will come with time and experience, but now thanks God there is Internet that allows to trade almost any markets in the world from your home.
You may be right, when I looked at the afternoon chart this evening I was thinking damn why did I quit at lunch. But it is always easy and clear in hind sight. And even if I quit too early I did finish with more points than I usually do. Hell if I was going on hindsight I'd be married to that wealthy pretty girl that liked me years ago and living off her daddy's money.
guys: try trading natural gas, or corn, or gasoline, or better yet hang seng (although its a little more quiet lately)..
makes the dow and US equity indexes look like childs play. Tuesday was wild, but very stimulating. Thursday was a dream.
makes the dow and US equity indexes look like childs play. Tuesday was wild, but very stimulating. Thursday was a dream.
Yeah,
the swings have been huge, My main market is the er2, however this past week I have been trading the ES almost exclusively.
The volatility and lack of liquidity in the Er2 has been insane for me this week, so I have resorted back to trading the ES after not having touched it in months.
I also cut down my size because the moves have been very big at times.
I mean in the ER2 , my usual main marklet, it's like 7 ticks slippage getting in or out. If your wrong your done. So I have been trading a lot of NQ and ES to combat this.
You have to adapt. For example, I kicked ass yesturday, and then lost 75% of my day on 1 bad ER2 trade. Some hedge fund had to sell and dropped it 3 points in 3 seconds. Then another hedge fund had to buy and drove it all the way back up.
The ES which normally sucks, has had some good moves with less devastating rinse job moves, all things considered this week.
So I am not trading the ER2 for now because it's just too nuts.
Just my comments, and how I have changed my trading to this huge increase in volatility.
Mike
the swings have been huge, My main market is the er2, however this past week I have been trading the ES almost exclusively.
The volatility and lack of liquidity in the Er2 has been insane for me this week, so I have resorted back to trading the ES after not having touched it in months.
I also cut down my size because the moves have been very big at times.
I mean in the ER2 , my usual main marklet, it's like 7 ticks slippage getting in or out. If your wrong your done. So I have been trading a lot of NQ and ES to combat this.
You have to adapt. For example, I kicked ass yesturday, and then lost 75% of my day on 1 bad ER2 trade. Some hedge fund had to sell and dropped it 3 points in 3 seconds. Then another hedge fund had to buy and drove it all the way back up.
The ES which normally sucks, has had some good moves with less devastating rinse job moves, all things considered this week.
So I am not trading the ER2 for now because it's just too nuts.
Just my comments, and how I have changed my trading to this huge increase in volatility.
Mike
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mmT;
ES has been more sloppy sometimes;
more slippage even with limit orders also.
Picking my entrys more selectively.
