Is it possible to consistently make $5000 a month trading 2 index futures contracts per trade ?

[Howard]

OP, you can make $5000 USD in ONE WEEK on ONE CONTRACT trading the HSI futures on the Hong Kong Exchange. And yes, you can make $5000 a month trading 2 NQ contracts or 2 RTY contracts or 2 YM contracts or 2 CL contracts

But, yet again, the attraction to the ES like moths to a flame. F THE ES! IT HAS HORRIBLE VOLATILITY below a 17 VIX. Low volatility = trading widowmaker.

SteveH,

I don't know the HSI, but I know the CL and it sure offers more than ES on average.

But YM or NQ - is there really much of a difference compared to ES?

I admit that I have not made an in depth study and probably should, but to me, it seems like the stock index futures move similarly. And with the exception of a few slow days lately, it seems to me that the ES has have some really nice moves and ranges lately.

Appreciate your input.

PS: I 'dabbled' in CL for a few months and while it sure as hell is more volatile than the ES, I found that I was having issues with slippage and to me it seems 'out of control' compared to the ES which I perceive as moving more orderly and respects levels, etc., better. But this might of course be differences in trading styles and mere inexperience on my end.

 

[SunTrader]

SunTrader,
I don't have any personal experience. I'm an unprofitable paper trader.

Mathematically , it can be done easily.

Maybe it's just me but I didn't notice them asking if "mathematically" it was possible.

What isn't.

Now I noticed there are many other similar useless, unrealistic posts explaining how it is possible so you are in good company.

 

[comagnum]

Is it possible to consistently make $5000 a month trading 2 index futures contracts per trade

How much you can make primarily depends mainly on the size of your bankroll. You will also need a great deal of trading + risk mgmt experience if you hope to be able to have a sustainable income over the long haul.

A trader with a $250k acct will need to make 2% per month on the principal which seems like a realistic goal for an experienced trader. With a $10K acct you would have to make 50% per month, dream on.

 

[speedo]

A 10k account trading 2 contracts of the ES would be using about 24x leverage which is aggressive but controllable by an experienced and disciplined day trader. So the return on LEVERAGED capital would be about 2% per month. The ability to do this appears unrealistic to someone who can't do or conceive of it.

 

[Scataphagos]

My trading life is so much better now that I am holding for days, not minutes. And far less decisions to make. Day trading was wearing me out mentally.

Better than scalping, but your "fly in the ointment" is, when you "hold for days", you have to presume "trades against you are noise and are properly held-through, ridden-out". Big flaw in that strategy.

"Counters and presumed-counters" are always a big problem.

 

[Scataphagos]

A 10k account trading 2 contracts of the ES would be using about 24x leverage which is aggressive but controllable by an experienced and disciplined day trader. So the return on LEVERAGED capital would be about 2% per month. The ability to do this appears unrealistic to someone who can't do or conceive of it.

Disagree.

If you want to make $5K/month, what you really need is confidence you can net 2-points per day* in the ES, without regard to leverage.... while controlling downside risk. That's about 20%/yr. Once you can do that, then you can lever up as much as your capital will allow.

* No easy task. Many ETers question whether it's even possible to net 1 point/day.

 

[speedo]

Better than scalping, but your "fly in the ointment" is, when you "hold for days", you have to presume "trades against you are noise and are properly held-through, ridden-out". Big flaw in that strategy.

"Counters and presumed-counters" are always a big problem.

Swing trading requires conservative leverage to withstand longer and deeper draw downs. Not that that's a bad thing, it's just a different thing. Most never develop the ability to day trade and some don't want to sit at the computer all day.

 

[speedo]

Disagree.

If you want to make $5K/month, what you really need is confidence you can net 2-points per day* in the ES, without regard to leverage.... while controlling downside risk. That's about 20%/yr. Once you can do that, then you can lever up as much as your capital will allow.

* No easy task. Many ETers question whether it's even possible to net 1 point/day.

A "disciplined and experienced trader" already has the confidence. I am not recommending using that kind of leverage only stating it doable for the qualified. Yes, the developing trader needs to take baby steps or he/she will blow out early.

 

[Scataphagos]

withstand longer and deeper draw downs.

Like I said... "counters are a problem". There will be times when "you withstand longer and deeper drawdowns" (presuming them to be noise counters, when in fact some of them will be "change of trend").... you look back and say, "wish I hadn't done that... should have stopped out waaaay sooner". How you cope is subjective.

I'm a long-time advocate of the "swing" trade, regardless of its warts... IMV the best overall risk-reward approach. Same principles can be applied on a shorter term time frame in a "day-swing" type of sense.

There is no "bottom line, best/perfect way" to cope with the markets. Every consideration and approach/style has its warts.

 

[SunTrader]

A 10k account trading 2 contracts of the ES would be using about 24x leverage which is aggressive but controllable by an experienced and disciplined day trader. So the return on LEVERAGED capital would be about 2% per month. The ability to do this appears unrealistic to someone who can't do or conceive of it.

IMO a experienced and disciplined day trader <> A 10k account trading 2 contracts of the ES

More like a 25k account size wise before considering how many contracts to trade.