Quote from krishiyer:
Krsna
I saw your post about your confidence of average stop loss for the next 100-1000 trades. I wish I come to your level of detached strict stop loss adherence.Would you share your wisdom on which contract you usually trade ES/NQ/YM/ER2?
what is the maximum string of stop losses you encounter under 10.8 tick stop loss rule before you score say +20 tick profit.I have not done research about your old threads which I will do later.
Iam mostly in option game on the Spy,IWm apart from occasional option play in oil,commdity,steel stocks.
Never traded the underlying futures(scared) much ,where as I will enter 20/50/100 contracts (debit premium )on SPY/IWM ATM/OTM options & scalp .10/.20.
But to get that .10 ,the future has to move 1.5 to 2 points!
To make my life simple,I want to trade only futures with a strict rules.Could you share your wisdom?
Any suggestions on indicators,chart set up,time frames?
Thanks
There is no fear in the present moment. Most of us come to trading to make money but discover we need to learn how to free our consciousness from fear before we can open the treasure chest. To cleanse our consciousness means avoiding criticism, aggression, violence, thieving, falsehoods, double dealing, hatred, intolerance. To start the process you first need be honest and admit they are there. Then simply observe them but do not act on them. You get in a trade and you feel fear, just OBSERVE it, chat to it. "hello fear, you still around, not much for you to do here at present, I have the stop in and my target is set. But hey, feel free to hang about." This clears your consciousness of fear over time. Trading just gets a whole lot easier when your new consciousness is clear.
The very first lesson I received in trading was from a trader I met in LA. He told me to go get a job as a broker and watch how people lose. I did and the first big client I worked with turned $20,000 into $50,000 in a month and into -$100,000 drawdown in 3 months trading stock futures! This was way back in 1986.
How did he make $30K so fastt? Tips, a bull market and no stops made him $30,000 in the first month. Luck.
How did he lose $150K so fast? Tips, a bear market and no stops lost him $150,000 in the next 3 months. His average gain was $1000 and average loss was $4,000. Lesson learned. Never forgotton. He paid $150,000 to teach me that. I have seen traders sweat in pure fear and I mean really sweat till the floor was soaking. You can learn the most by studying how others lose and then by studying how the masters win. Trouble is there are more losers than masters.
First define the stop necessary for the time frame. Shorter the time frame smaller the stop harder the analysis. Look for a market with liquidity and get to know it well. Do daily, weekly, monthly charts on them and study the trend. Then look at hourly, 30 min, and 15 min. Then go smaller till you can decide what time frames suit you.
Open a simulation account and trade realtime demo to start with. Use an execution service like button trader or ninja trader to place trades. ( I asked ninja to add the PF which they have) When your PF is at 2.0 turn on real money. Remember the Law of Large Numbers. Statistical analyses gets more and more accurate as the sample size gets bigger and bigger. KEEP RECORDS. The great thing today is programs like button trader and ninja trader keep them for you. They keep you honest from your lower self who is prone to cheat.
I only trade futures, so cannot speak about options etc. All stock indices are good to trade as are bonds and currency futures.
Little bit of help for you.
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