Question about futures.
- Thread starter IShopAtPublix
- Start date
Quote from jeb9999:
How much a lb do you pay for your stocks/options?
It is not my fault 416.50 on the chart does not mean 416.50 dollars. Out of all mistakes this one is essentially harmless. I am used to normal 1 to 1 correspondence between price quote and actual price in dollars. All this proves is that options trump all in profit potential though they are exceptionally risky.
I remember my first "paid" lesson being much more expensive both financially and mentally. At least you are able to laugh...
Quote from MandelbrotSet:
LOL man, you've made your point, no need to kill'em.
We both know that he meant 10 points, not 10 dollars and seeing as how it has the same tick value as the ES (which Shaqi is making fun of so well) he actually has a valid point.
I hope he succeeds at his task (just because he isn't differentiating dollars from points doesn't mean can't manage risk).
It is better that I kill him rather than the market kill him.
Being ignorant about anything in the futures markets is the fastest way to a zeroed out account.
Suggestion: Checkout trading CME Future Options... Should be right up your alley.
No way would I zero out an account with futures. If I can stay afloat trading only puts with 1 month to expiration or less futures don't scare me one bit. Chart patterns don't change profit potential changes. It is awful to go from potentially making 3000% profit a trade to something like 80% tops.
Depends on starting capital. I don't have a lot of money to trade (usually like 1 grand at the beginning of the month from the previous month) and I have to create something out of nothing and make money to cover my living expenses and live another day. That situation creates a lot of stress. If a stock wastes my time doing nothing for a week it is a catastrophe. In essence, I have roughly 20 trading days to quadruple my money and that does not increase my capital at all. If I had 100K I would be in 7-8 figures a long time ago.
With futures unlike options you can lose more than your starting capitol, although I believe most brokers will liquidate your positions before you owe them $.
Can You explain to us how you manage your risk when trading options? Do you set a stop, have a mental stop or allow them to expire worthless?
Can You explain to us how you manage your risk when trading options? Do you set a stop, have a mental stop or allow them to expire worthless?
Very simple. I track a group of stocks (no more than 20-30)expecting them to produce certain formations. Once they confirm expected behavior (beginning perceived trend reversal) I go in at a predetermined point and have a predetermined exit point. Then I track what happens to them (but not the whole day) If I feel they are not moving as desired I get the hell out.