Problem with trading 1 contract only

heavenskrow

heavenskrow

Right now I am still in the learning boat of trading futures consistently and successfully.

My question to you guys is how do you manage trading 1 contract?

For example, let's say your short 1 ES contract. You see ES coming into a support level, that you know the markets will react to but you still have a target level that is further away.

Do you just get out and take profit at the first level? And reshort at any bounce the market gives you? Or do you stubbornly hold onto that 1 contract position until it reaches your target?

Obviously with ETF's/stocks or larger contracts, I can sell 1/3 of my position on a small target level, and hold the rest until it reaches the level you have set.
 
May be controversy about this... but I've never believed in "targets". Just because you have an "ideal price" in mind, doesn't mean the market has the same.

(OK... now that I've said it the polite way, let me say it the realistic way... TRADING BASED UPON TARGETS IS STUPID! You should buy when the "last indication is for higher prices", and you should sell when the "last indication is for lower prices"... scrambling as best you can when the market jerks you around. You want the market to be more predictable and reliable than that for you to risk your money? Sorry. It isn't.)
 
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Trading with 1 contract really limits your flexibility doesn't it? With 2 contracts you could cover 1, leave your stop in place and wait for the other to pan out (or not).

The real question is why would you enter with a target beyond an obvious support level?
Sounds like your prognosis of where price is going said to wait for support rather than entering short now.
 
personally, when it gets close to my limit I just pray. I'm not trying to convert you, but it works about 50% of the time. otherwise, if it gets close to my limit and I don't get filled I "analyze". If I think it will finally get hit I hang on, but if I think I missed it I just close out at the market. If the market is trending I just try to go with the trend. But if I think it is chopping I will try to buy lows or sell highs. But since you are trading consistently and successfully you already know all of that. What again was the question?
 
Scataphagos said:
May be controversy about this... but I've never believed in "targets". Just because you have an "ideal price" in mind, doesn't mean the market has the same.

(OK... now that I've said it the polite way, let me say it the realistic way... TRADING BASED UPON TARGETS IS STUPID! You should buy when the "last indication is for higher prices", and you should sell when the "last indication is for lower prices"... scrambling as best you can when the market jerks you around. You want the market to be more predictable and reliable than that for you to risk your money? Sorry. It isn't.)
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Smart!!
 
stevegee58 said:
Trading with 1 contract really limits your flexibility doesn't it? With 2 contracts you could cover 1, leave your stop in place and wait for the other to pan out (or not).
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When you "split your play" between 50% positions... at the end you're glad you did one (at least relatively... you know, in case they're both losers), sorry you did the other.

Big time market success is mostly about:

1. Taking large, unhedged bets on direction on an issue

2. Liming losses when your play fizzles.

I know... you can be a "pairs" trader... and hedge this-and-that positions with options... trade "non-correlating markets", and that's all fine. If successful, you might nickel-and-dime your way to some sort of financial accumulation... and there is certainly nothing wrong with that. But for the most part, if you want to make any real money, you have to stick your neck out and be right about your play.

That's it. Rinse, repeat. K.I.S.S.
 
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Scataphagos said:
Big time market success is mostly about:

1. Taking large, unhedged bets on direction on an issue

2. Liming losses when your play fizzles on you.

That's it. Rinse, repeat. K.I.S.S.
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You said it...it's all about Risk vs Reward. o_O ...you can go as far as you want to in this game...if you have the appetite for it.
 
stevegee58 said:
And as we all know "Scaling out is inferior behavior". :p
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Hmmm.... can't tell whether that's a sage or sarcastic comment. Personally, I've never "scaled in" nor "scaled out", but that's just me. However if the "Big Collapse" is on the horizon as some say, I might be scaling-in on certain issues in the future.
 
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