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My high school summer job: trading the NQ
- Thread starter zdawg164
- Start date
Den you sound like a real dickhead. Did you seriously register here so you can talk down to a couple of eighteen year olds who are here trying to learn? I feel sorry for people like you. If you aren't going to be helpful, encouraging, or at least funny on a thread like this then you should consider shutting the hell up.
So, here's how the thread reads to me: Hi, I'm a beginner with $2000 downto $1500. Need Advice.
Here's a problem with a $2000 account. You're trading NQ contracts at $20/point. So every point is worth $20, and that means each tick is $5. What is $20 on your account, 1%. What is 1 point on NQ contracts. 1/1823=0.05%. So when this market moves 0.05%, your account moves 1%. This implies your leverage is about 20:1. Your account does not support trading futures. You can do fine with QID or QLD, and get perfectly matched 4:1 returns on a 2x margin account.
I think it's obvious that this didn't cross your mind. You're too leveraged. It'd take about $20,000 to not blow your wad on just 1 contract of NQ.
Here's a problem with a $2000 account. You're trading NQ contracts at $20/point. So every point is worth $20, and that means each tick is $5. What is $20 on your account, 1%. What is 1 point on NQ contracts. 1/1823=0.05%. So when this market moves 0.05%, your account moves 1%. This implies your leverage is about 20:1. Your account does not support trading futures. You can do fine with QID or QLD, and get perfectly matched 4:1 returns on a 2x margin account.
I think it's obvious that this didn't cross your mind. You're too leveraged. It'd take about $20,000 to not blow your wad on just 1 contract of NQ.
Quote from bwolinsky:
So, here's how the thread reads to me: Hi, I'm a beginner with $2000 downto $1500. Need Advice.
Here's a problem with a $2000 account. You're trading NQ contracts at $20/point. So every point is worth $20, and that means each tick is $5. What is $20 on your account, 1%. What is 1 point on NQ contracts. 1/1823=0.05%. So when this market moves 0.05%, your account moves 1%. This implies your leverage is about 20:1. Your account does not support trading futures. You can do fine with QID or QLD, and get perfectly matched 4:1 returns on a 2x margin account.
I think it's obvious that this didn't cross your mind. You're too leveraged. It'd take about $20,000 to not blow your wad on just 1 contract of NQ.
the problem with small accounts is that we cant daytrade stocks because of the PDT rule. when people open a small account, thats bound to cross their minds. i'd rather be trading QID or QLD, but can't cause i dont have a big enough account. instead, we just (try to) make some good small trades, and build up the account very slowly and methodically.
It is entirely possible to start with an account worth a few k and turn it into multiple k with the futures markets. I myself started with 3k 2 years ago and am well over that now. They key is to place your trades very very carefully. Think of it as a punch card and you only get so many punches before its game over. Just try to come home with a little more money in your pocket than what you started with everyday. Start your trading day thinking how am I not going to not lose the most money, not how am I going to make the most money. That is the way to win when you have a small account. Risk/Reward must be thought of at all times.
Good Luck Man!
Good Luck Man!
The strategy might not be to daytrade then. I think you'll find more reward day to day. I've traded with a bit more, but it was an account with margin and about $10k. I wasn't intraday trading, just holding overnight.
What am I even talking about? He needs a strategy. $2k or less spent on trading software might do more good than wasting it gambling on the NQ. You can see the leverage is too high. I only risk at most 2% on the index itself, and that's my stop, but I only lose 2%. You lose that on a 0.1% move. Too much. When I do win, though, is about 5% on qid or qld with a 2.5% move on the index. I can and have won more than that.
Strategies are worth every penny. I can only count on two hands people that can do it, though.
What am I even talking about? He needs a strategy. $2k or less spent on trading software might do more good than wasting it gambling on the NQ. You can see the leverage is too high. I only risk at most 2% on the index itself, and that's my stop, but I only lose 2%. You lose that on a 0.1% move. Too much. When I do win, though, is about 5% on qid or qld with a 2.5% move on the index. I can and have won more than that.
Strategies are worth every penny. I can only count on two hands people that can do it, though.
I recommend that you go to the forum titled: "AHG-Profitable Strategy for Struggling Traders".
Read and study the patterns and Price Action and let that determine what to do and when. I wouldn't even use the Sim. untill you study this forum because you don't need to practice making the same mistakes over and over.
When I look at your trades I can't really see what you are trying to do, and see no reason for most of the trades.
Take another look at your past charts and look at the nice long trends up and down just about every day (which is what you want, and you will see that you never even tried for them. Those are what you want and AHG will show you how to get a good % of them. No method is 100%
I have been trading stocks and options for about 50 Yrs. and most of it transfers over.
On the Investors Business Daily Forums there are several young people on there getting a trading education and doing real well.
Remember, You don't have to be doing something all the time, Pick you spots and quit donating your hard earned money.
Read and study the patterns and Price Action and let that determine what to do and when. I wouldn't even use the Sim. untill you study this forum because you don't need to practice making the same mistakes over and over.
When I look at your trades I can't really see what you are trying to do, and see no reason for most of the trades.
Take another look at your past charts and look at the nice long trends up and down just about every day (which is what you want, and you will see that you never even tried for them. Those are what you want and AHG will show you how to get a good % of them. No method is 100%
I have been trading stocks and options for about 50 Yrs. and most of it transfers over.
On the Investors Business Daily Forums there are several young people on there getting a trading education and doing real well.
Remember, You don't have to be doing something all the time, Pick you spots and quit donating your hard earned money.
Hey guys, sorry I haven't kept you posted for such a long time. I've taken most of my mind off the market for this time, to get my head cleared of any depression I might have had about loosing $.
I've been papertrading this strategy which was very similar to my old one, except now I have realized that I need to be able to hold on for longer periods of time, and if I can build up enough patience to do that, I could be catching moves of min 3.5 points (which is now actually my new profit target on every trade, with an extended 2.5 point stop)
But yeah, daytrading SO MUCH I realized obviously only brings bad things to my account (commish and bad trades in general) so I am slowing it down a tad bit and planning to hold on for those nice, long moves.
I've been papertrading this strategy which was very similar to my old one, except now I have realized that I need to be able to hold on for longer periods of time, and if I can build up enough patience to do that, I could be catching moves of min 3.5 points (which is now actually my new profit target on every trade, with an extended 2.5 point stop)
But yeah, daytrading SO MUCH I realized obviously only brings bad things to my account (commish and bad trades in general) so I am slowing it down a tad bit and planning to hold on for those nice, long moves.