My first journal. Tradestation, TC2000.
- Thread starter Math_Wiz
- Start date
Thanks JL, yes. Trying to figure out how to do that appropriately. With my buying power, I can buy 500 shares of QQQ and I will be maxed out. And if I hold any overnights, my intraday buying power will be even less than that. With that said, I don't really like entering a position with full size. Or even half size. I like to maintain enough buying power to add to my position if it goes against me and if I decide it's the right thing to do. But yet I need to play larger size in order to make a living at this. So it's a conundrum, lol. But I have this idea, at least with regards to the index ETFs. For example, I could play 250 shares of QQQ. If it goes against me, I could double up if I choose (I know it's not wise, so I have to be very careful and very confident otherwise I could quickly lose a bundle. And with a $33,000 balance, I don't have a whole lot that I can lose before I fall below the $25,000 pattern day trader balance, so I have to be extra-extra careful not to do that!). And then if it goes against me more and I wish to add more, I could maybe exit my position in QQQ, and then immediately load up on a 2X or 3X index ETF. I know pro-traders will shake their heads most likely, but it's just an idea anyways. Or I could just trade the 2x ETFs to begin with. Trying to figure it out. Also there is a problem when using this method with stocks. There is no 3x or 2x stocks. There are "options" in many stocks, but there are no 2x or 3x stocks if you know what I mean. But I haven't gotten into options yet. Eventually I might get there, but to date I have never traded options. But to answer your question, I do realize the need to play larger. I'm continuing to set up my TC2000 software so that I can see what I want/need to see at the appropriate times, and when I have this set up appropriately (getting it set up little by little, day by day, figure out what I need...) then my confidence will be increased. When my confidence is increased, this will especially allow me to go with the larger size. Hoping that day happens soon!
You can see today that I have an example of "doubling up if it goes against me". You can check out my 10:00 am trade in QQQ. I added twice to my position as it went against me. If I had begun my position with 250 shares, I could not have tripled down. I could not have even doubled down because I held a couple of small overnight last night (and so my intraday buying power was reduced today), but assuming I had 400 shares after doubling down (not tripling down), I most likely would have been a little bit extra nervous and scared, and I probably would have exited too quickly when it came back in my favor. I exited quickly enough as it was. But with 500 shares (or 400 shares in this example), I know that little bit extra fear factor might have encouraged me to exit even more quickly. So there would be a significant "cost" to this over time. Anyways, I do realize the need to scale up. Just trying to figure out how to do it appropriately, within the confines of my trading psychology.
You scale small increment like 15 to 25C each trade, this remind me of a trader at ET (he was pretty active a few years back there) and he basically made about 2-3 C per share, but since he traded with Prop firm that provided plenty of fund, he played big trades and he probably made more than half million a year in average. When a stock moves 10C, you profit 10 dollars per 100 share, 100 dollars per 1000 shares, and 500 bucks per 5000 shares. Catching 5 of them it is $2500 and that makes a good day. Hope you constantly improving and grow your fund and eventually can do larger size, but consistency in winning is the key and priority so stick to it.
I have not read all the posts in this thread so sorry if already discussed.
My suggestion is to consider trading the emicros rather than the etf's. The micros are 1/10 of the minis. So one micro es is equal to 50 spy shares. I think the margin at IB is around $1500 per contract on the micro es.
Micro Naz is $2 per point micro es is 5 per point.
Best of luck to you!
My suggestion is to consider trading the emicros rather than the etf's. The micros are 1/10 of the minis. So one micro es is equal to 50 spy shares. I think the margin at IB is around $1500 per contract on the micro es.
Micro Naz is $2 per point micro es is 5 per point.
Best of luck to you!