The Time Has Come !

saxon22 · Mar 18, 2007

Quote from Pa(b)st Prime:

How many trades a day do you imagine doing?

With the 1 ES contract - as often as my set up allows me to make money. I it is once every 30 minutes then that what it will be. If it is once every 2 hours then ... you get the drift.

With 50 contracts - I would probably limit the amount of RT's and only concentrate on those set ups that are a lot less risky. I would imagine 1 fill i the morning and 1 fill after lunch. Only going for what i would perceive as extremely high probability scenarios.

saxon22 · Mar 18, 2007

Quote from Tums:

without the foundations, further discussion is futile.

I have not read those three books, but I have gone over other publications. While they look interesting, I am sure they are not indispensable when it comes to learning the foundations. Moreover, you missed the original question posted on this thread.

saxon22 · Mar 18, 2007

Quote from Bearbelly:

My own criteria is $2500 for each contract traded. You can do it for as little as $500 per but I think this is foolish. I plan to add one contract each time $2500 is added to my account. After a year of trading I feel comfortable with this.

This is precisely the kind of answer I was looking for. diminutive and to the point. Thank you.

JSL_Capital · Mar 18, 2007

If you trade with 50 ES lots and it goes against you 2 pts (and it will), you'll lose 5k easy, before commissions. If you have a 4 straight losing streak of that magnitude (and if you trade that big you will) you just wiped out 20k from your account. Before even attempting to go that big ask yourself, can you take that much heat? I know I can't

To give you some perspective from my personal experience, in this volatile environment, you can make 2-3k a day going in with 4-12 lots (scaling) and with occasional home runs (for me at least, anywhere between 6-15k) with less than 20 while risking about 2.5k a day.

saxon22 · Mar 18, 2007

Quote from JSL_Capital:

If you trade with 50 ES lots and it goes against you 2 pts (and it will), you'll lose 5k easy, before commissions. If you have a 4 straight losing streak of that magnitude (and if you trade that big you will) you just wiped out 20k from your account. Before even attempting to go that big ask yourself, can you take that much heat? I know I can't

To give you some perspective from my personal experience, in this volatile environment, you can make 2-3k a day going in with 4-12 lots (scaling) and with occasional home runs (for me at least, anywhere between 6-15k) with less than 20 while risking about 2.5k a day.

Thanks for wise words. Yes I am aware that 50 contracts is a lot of money on the line. However, I just do not see myself doing it for peanuts forever. I think if one has the capital AND the knowledge combined with market experience, one should use it. As for the answer to that 20K question.... well, I would not risk the amount if i were not prepared to give to the market. However, in order to be able to be 20K in red, one has to have a sizeable account, hence my original question: How much one should have to trade 50 contracts?

JSL_Capital · Mar 18, 2007

Your liquid net worth should be at least 500k. The account size doesn't matter except that it should be kept as small as possible while being able to accommodate that size on margin and profits should be taken out regularly to reduce any event risk.

saxon22 · Mar 18, 2007

Quote from traderdon56:

You haven't told us your R/R ratio.

Sorry, I missed that part. Risk Reward that I am looking at is going for 2 points either way.

traderdon56 · Mar 18, 2007

You come on here asking for advice, we give you some and then you say "You're right, BUT..blah blah blah...."

When I said concentrate on making money with one contract for now, THAT'S EXACTLY WHAT I MEANT. I didn't mean concentrate on making it with one contract for now, and at the same time think way ahead.

Stop thinking about 50 contracts RIGHT NOW. You're going to have a hard enough time getting profitable with just one contract.

saxon22 · Mar 18, 2007

Quote from JSL_Capital:

Your liquid net worth should be at least 500k. The account size doesn't matter except that it should be kept as small as possible while being able to accommodate that size on margin and profits should be taken out regularly to reduce any event risk.

So $400K in liquid $$$ and 100K in the account should do the trick?

saxon22 · Mar 18, 2007

Quote from traderdon56:

You come on here asking for advice, we give you some and then you say "You're right, BUT..blah blah blah...."

When I said concentrate on making money with one contract for now, THAT'S EXACTLY WHAT I MEANT. I didn't mean concentrate on making it with one contract for now, and at the same time think way ahead.

Stop thinking about 50 contracts RIGHT NOW. You're going to have a hard enough time getting profitable with just one contract.

Well, it is Sunday, a slow and lazy kinda day so I allowed myself to daydream a little bit. However, I assure you, once 9:00 AM Monday hits, I will be in front of my PC looking at the charts thinking how to wrestle away $$$$$ from the market 1 contract at the time. What I am trying to put across is that I cannot allow myself to treat this as a part time job and create a comfort zone where I trade 1 or 2 contract and make enough to survive but not enough to live. I guess, itis my motivation to push myself harder.
However, I do appreciate your effort to instill in me that trading is not easy and it is not a game and that, in order to survive, I will have to fight hard. Believe me, I hear you loud and clear.