S/R Emini Journal

[princessa]

Quote from LondonUSTrader:

Hi Gary,

I was thinking about the way you trade and one of the reasons I think you are successful is you have some of the fundamentals right.

(1) You focus off key support and resistance numbers giving you a higher probability trade than if you just relied on chart patterns alone. Also reduces the chances of getting caught in the chop.

(2) Your money management is sensible. By limiting yourself to 2 trades per day max you can never really overtrade or have a bad day that you cannot recover from. Although your profits are small by making consistent gains over the long run it soon adds up. Besides, I also contend that there are maybe only 0-4 good quality trades in the ES per day. So, your method is also sensible from that perspective as well.

(3) I think it is to your advantage to trade the ES solely. The more you trade a market the better you get at it and in the long term that brings intuitive benefits I think. Hard to know a market as initimately if you trade several markets or you switch from one market to another. I am a fan of finding a market you like and sticking with it through thick and thin. A bit like a relationship with a good woman. You'll have your ups and downs, but in the long run it will bring additional benefits that you don't get if you chop and change.

So, well done and keep up the good work!

Cheers.

amen...on all points!

(especially the goo woman part...lol )

 

[princessa]

re: bounce wit me from volente

Quote from yvberj:

Do you really spend time dreaming up these lyrics?

What ever you do, don't even think of trying to make a living as a writer.

Alex

no,he copies them from pre-existing ones.

the above is from g-unit, i believe. in particular, 50 cent. am i right, vo?

 

[princessa]

Quote from volente_00:

FWIW the guy that sings that song has made millions.


http://lyrics.astraweb.com/display/647/jayz..unknown..can_i_get_a_video_edit.html




As of 2006, he was estimated to be worth around $320 million

oh snap! i was wrong. it's jay-zee....

 

[princessa]

Quote from 4re:

Of course now I am seeing a nice bear flag on the 15 minute. Might just short a breakout of the LOD

man, i missed a lot in 2days...need to follow more closely

 

[princessa]

Quote from brandon12:

I've been reading theses notes for a while and the info is very good. But the reality is most people keep about 20-30k max in a futures account. With 30k you can control 60 contracts max on day trading. All will agree to take 30k to 60k in a year is a 100% and a hell of a year. The problem with futures it's not really scalable to the fact very few people will go from 10 lots to 20 to 30 to 40 to 50 lot size as or should i say if there accounts grow will they do it. You're whole trading style and reactions will change trading 10 contracts vs 50. $2500 a pt with 50 contracts changes peoples reactions to loses. Like gary even though most of your trades work you might be down 3/4 of a pt first before it works and on 50 contracts thats over $1700 which to many people would scare them out of the trade. Also many people never leave over 30k in there futures account. My pt is how many people really believe they can do 100-200% every year? so if you make 30k on a 30k account every year you're one of the best investors around. No different than a stock account with 200k. If you can make 200k every single year you're one of the greatest investors alive.I think many people read this thread and think"man these guys are nailing 90% of there trades and i can take my 30k account to 200K" . Experienced traders know thats not true. But gary you've done a good job and spent a lot of time on this board

but if, through a series of wins and losses, you manage to average $500/d, that's roughly $10k/month, which is not bad. daytrading, you can do this on a 30k account. and you can do it trading 10 contracts at a time. $120k/year is not a bad average, especially if it's not your sole source of income.

 

[princessa]

Quote from 4re:

JJ is more than right on this one. The more margin you use at one time the less likely you are for success. You do have 60 trading bullets for any one day but I would suggest never using more than 1/4 of those in one day which would be 15 and I would split those in half meaning 7. Only after you have started out small with 1 and start showing a small profit for a couople of months. Then slow increase to 2 then 4 and so on. Remeber, survival first then trader.

good advice, gary. if i ever feel competent enough to trade futures with real money, i'll remember this.

 

[princessa]

Quote from volente_00:

This looks like a jerry springer episode on margin.
This is how I use margin. I take the max I am willing to lose on any one trade. Multiply that x 2. Subtract it from the amount in your account. Then divide by 500. I have traded 40 before with only 25k. I have traded 10 with only 6k. It all boils down to your risk tolerance. As far as returns, you have to understand that If you take 2 points on 1 contract with a $500 margin, yes you made 20% on your money, but in reality you only returned $100 on a $65000 position. There is no difference trading 1 contract with a $1000 account or 1 contract with a $4000 account as long as you have the same money managment. Without proper discipline it really does not matter how much money you allocate for each contract.

amen, vo....

10 contracts at 2 points is $1000 win.
10 contracts at 1 point is $500 loss.
If you do these 2 trades, 1 win, 1loss every day, then $10k/mo = $120k/yr.

 

[princessa]

Quote from YMZ:

As the insults start flying this thread will become like so many of the others on ET. Why don't we nip it in the bud right now? For a business where you have to accept being wrong so frequently, we would all do so well to carry that through to our personal lives as well. It really does not matter who is right or who is wrong...who knows more than the other etc. What matters is that the thread is productive and benefits those who contribute and those who want to quietly sit and learn.

amen....

 

[brandon12]

My whole pt of my statements was to show how incredibly difficult it is to make a living trading futures. $500 a day or 10k a month sounds easy but thats each and every day you must do that. So realistically if you're hitting 60-70% of your trades you're doing incredibly well so if you're profitable 3-4 days out of the week you need to probably avg $1000 a day on your winning days. There's a huge difference between averaging $500 every sinlge day and making $500 3 days a week and losing or even the other 2. It's fools gold to think someone can make 500% on a 30k account year in year out.just warning all to keep you expectations in check

 

[monti1a]

Quote from brandon12:

My whole pt of my statements was to show how incredibly difficult it is to make a living trading futures. $500 a day or 10k a month sounds easy but thats each and every day you must do that. So realistically if you're hitting 60-70% of your trades you're doing incredibly well so if you're profitable 3-4 days out of the week you need to probably avg $1000 a day on your winning days. There's a huge difference between averaging $500 every sinlge day and making $500 3 days a week and losing or even the other 2. It's fools gold to think someone can make 500% on a 30k account year in year out.just warning all to keep you expectations in check

"You should either make a business of trading or else not try to be a trader. You cannot be successful at trading any more than you can be at mining, manufacturing, doctoring or anything else, unless you are trained for it…unless you are peculiarly adapted to the business you are better become an intelligent investor instead of an unintelligent trader. " - Richard Wyckoff

...almost anything is possible in trading with the proper training...even running a 30k account up to 150k