So doesn't using "tight stops" necessitate

Quote from IronFist:

I hate stock taxes and don't want to deal with wash sales and PDT rules and stuff.

I have thought about doing what you said, however.

I wish there was like a mini e-mini :D
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You're right - the wash sale part and the full taxes sucks. But think of it as, well, training wheels while you get your sea legs. Your first goal is to get out of the DIA and get into the YM. Gotta start small, right? :D

Don't forget Gainskeeper can automatically do all the wash sale match ups for you.

http://www.gainskeeper.com/
 
Quote from IronFist:


As for the 2-1 system or whatever, my futures trading account only has about $10k in it and I don't have the intestinal fortitude to handle drawdowns with TWO contracts. In other words, say my stop is 3.25 points. With 2 contracts, that would be $130 per losing trade, which means that if my first three trades on my first day were losers, I would be down nearly 4% of my account in one day. Aren't you supposed to stop if you get down 6% in one month? I would be 2/3 of the way there in one day (likely in under 2 hours). Forget that. I can only trade 1 contract right now therefore my wins have to statistically beat out my losses and my losses cannot be large and/or frequent.

Alright ET, have at me.
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I haven't read other replies to this, but you are severely under-funded and given the market volatility, using a 3.25 tick stop on NQ is a loser's game IMO.
 
Quote from IronFist:

Sorry dude, I can't take the risk of losing such a high percentage of my account value in such a short time.
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If that's the case, it sounds like you aren't well enough capitalized to even trade one contract. My suggestion would be to move to a less-levered asset class.
 
your first trade you posted today
that you took a 3.25 point hit on .


Doesn't it bother you that you are not buying low and selling high?

but you are selling low and... buying high?

On that trade.
 
keep trading with 1 contract,
you don't need 2 contracts, if you can't get the first entry right.


don't listen to the other crazy people in here.
 
A scenario on stops:

You can trade a 500 tick volatility bar with a 3 tick stop , just cutting in for the spread.




A theory on stops:

a) The correct timed entry will allow you to enter with the smallest stop imaginable.

b) The incorrect timed entry,and you will be stopped out regardless if you had a 5 tick stop or a 100 tick stop.


With this in mind, what do you think you have to work on?
your stops or your entry?

---------

you are clearly buying on the opposite ends of the spectrum...
<b>obvious.</b>
 
SLD YM DEC08 Futures YM DEC 08 8728.0 USD ECBOT 13:00:24
BOT YM DEC08 Futures YM DEC 08 8692.0 USD ECBOT 13:01:53



The correctly timed trades, never moves against your position.
<b>
Your entry should be GODS COMMAND when you enter.
If it isn't, it isn't the right entry.
</b>

Even from this entry, you can realize, from the same entry I held onto for the whole day, It would never be stopped out.


Profitable from the second you entry,
Profitable all day.

Period. Thats ENTRY.
 
Quote from coolweb:

keep trading with 1 contract,
you don't need 2 contracts, if you can't get the first entry right.


don't listen to the other crazy people in here.
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the above poster is correct. execution is KEY.
On days like today your entry point is critical and so is your stop loss. here is what i just posted in the ES thread in the Journal section. SEE BELOW


Quote from pulsescan:

the part that really gets me is that im a systems trader so this was a big swing trade sell signal. these types of setups can take days or even weeks to set up. i waited for this and i blew it with stupid stop losses ( i did not stick to my volatility stop) instead i allowed fear to grip me. i was afraid that the mkt was going to retrace hard and i would have to hold the position for a few days until it turned around. i did not want to do that and instead i allowed my viewing of the chart to dictate the trade. i was afraid that i might be selling an oversold chart pattern that would bite me hard. sometimes the "ST signals" i.e. swing trade signals will trigger during the end of a cycle/ overbought or oversold condition.

bottom line: i second guessed myself and my system and it cost me big time $$$. not in cash but in oportunity loss. i still made big money on the trade in normal standards i.e. the national average daytrader makes $62-$100 per day if they are lucky. well i made several times that but still i hate the fact that i messed this up.

yes i made my daily goal of trading i.e. $500-$1,000 per day but i could have made $6,000 today. instead i settled for $700.00

I THINK I WILL PUKE NOW.:(
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as you can see. how you enter the trade and how you manage the trade once your it in is of upmost inportance!

1. Trade execution
2. Trade management

:cool:
 
Trading with small stops is the one of the key elements of consistently profitable daytrading.

One of the reasons many do not advocate the use of small stops is because most fail at daytrading so by deduction and logic most will disagree.

You need to learn how to enter correctly to be able to use small stops properly, until you do it will remain a mystery.

As far as your comments of, futures being too much leverage, but hating the taxing of equities, you trying to bake the cake and eat it too. Need to make compromises, in life and in trading.

TV
 
Quote from coolweb:

your first trade you posted today
that you took a 3.25 point hit on .


Doesn't it bother you that you are not buying low and selling high?

but you are selling low and... buying high?

On that trade.
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what?

I posted my thoughts about what was going on during that trade. It's easy to look back and say "lol you sold low" but at the time I had no way of knowing; I was going by the LLs and LHs.
 
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