The 1 ES Point REALITY

professionals think about (before they enter a trade) how much can they lose, and whats the probability of winning vs. losing

amateurs think how much can they win (a KILLING) and get rich

guess which camp tends to make money in the futures market?
 
do the math...throw 500-1,000 contracts at the ES and make only 1 point per day...that is huge bucks...not even considering 3-7 points per day etc....
 
Quote from increasenow:

do the math...throw 500-1,000 contracts at the ES and make only 1 point per day...that is huge bucks...not even considering 3-7 points per day etc....
More...


2 problems with ths scenario:

1. What happens if the market goes the other way?
2. Where are you going to get the capital to throw 500 or a 1000 contracts?
 
Take what the market gives you and always stay within your risk parameters. Having a daily goal/target will only get you in trouble.

I post daily in P/L thread and have traded nearly 3000 ES roundtrips in the past 1.5 months and my net gain per contract is only about 3/4 of a tick (that's 1/8 of an ES point). Gross without commissions is closer to a full tick. I'm very happy with this performance and hope it continues.

Anyone that can net 1 ES point (4 ticks) per contract roundtrip is a MUCH better trader than me and I'll be first to congratulate them.
 
Quote from MBAGearhead:

Take what the market gives you and always stay within your risk parameters. Having a daily goal/target will only get you in trouble.

I post daily in P/L thread and have traded nearly 3000 ES roundtrips in the past 1.5 months and my net gain per contract is only about 3/4 of a tick (that's 1/8 of an ES point). Gross without commissions is closer to a full tick. I'm very happy with this performance and hope it continues.

Anyone that can net 1 ES point (4 ticks) per contract roundtrip is a MUCH better trader than me and I'll be first to congratulate them.
More...

Great post...Best trading to you...
 
I dare say that a person with capital to throw 500 to 1000 contracts at the market, would be very disappointed at the return that 1 ES point a day would provide. The OP has revealed their totally undercapitalized state here.
 
Quote from Buy1Sell2:

I dare say that a person with capital to throw 500 to 1000 contracts at the market, would be very disappointed at the return that 1 ES point a day would provide.
More...

Really? That is 250 points a year, depending on the leverage used, let's say a conservative 10K for each contract, that is a 125% return annually.

You clearly don't understand the power of exponential growth. Do the math, start out with 1 contract and 2K and add an extra contract traded for each additional 2K gained. I think it goes over 200K by year's end...
 
It is of cause possible, but it is a poor idea to limit a daily gain by just 1 point. You will often simply cut your winners. Just work out a system with clear entry/exit signals, follow it and forget this 1point/day ideas.
 
Quote from Buy1Sell2:

I dare say that a person with capital to throw 500 to 1000 contracts at the market, would be very disappointed at the return that 1 ES point a day would provide. The OP has revealed their totally undercapitalized state here.
More...
Really? Just for the sake of argument, let us suppose that a person wishes to maximize the use of leverage. Intraday margins are now about $500 or so. If you could net 1 point a day after expenses, then that amounts to a 10% return. Daily! Too much leverage? OK, then how about 1 contract for every, say, $3k in equity? That's still over 1.5% per day on account equity. Assuming a scalable strategy in a liquid market such as ES, 1.5% daily compounding brings the annual return to just over 4,000% (assuming about 250 trading days per year). Of course, you can continue to scale back the leverage until you feel more comfortable. Regardless, netting 1 point per contract per day is not to be sneezed at.
 
You must log in or register to reply here.
Back
Top