Thinking to start trading EMinis

You don't specified the eMinis you gonna trade.I supposed you're considering the ES. If you gonna trade de ES with a 4 points stop you're gonna risk 4% of your account ( 5K) in each trade which is a high amount. 18 wrong trades and you'll be out of business. On the other hand with a 5 points target you're planning to get around 30% of the market average daily range every day, which is not impossible although very hard to reach even when you've been trading for a while.
I've to disclosure that I don't trade the ES contract but the basic numbers and common sense work with every trading issue.

Do your math. Good luck
 
Quote from Grob109:

As a lurker, I feel that you post is fairly neat. Lots of good choices.

Not being stuck and unable to accept guidance is a good place to be. Were I you, I would read guidancefrom the viewpoint that the person offering it must exemplify his/her viewpoint.
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You have no mangement plan initially since you are beginning the way you are; I do not know why others overlooked this. You can get to management and risk minimization once you begin to deal with more and more opportunities that come from being more comprehensive vis a vis possible entries. You should expect two trades a day at his point; your exits will be quite painless as well.
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Welcome Grob. You write in a very similar manner to a member, Jack Hershey, who was recently kicked off of this board. Did you read any of his stuff while you were lurking?

Take care.
 
Quote from Hawker:

You don't specified the eMinis you gonna trade.I supposed you're considering the ES. If you gonna trade de ES with a 4 points stop you're gonna risk 4% of your account ( 5K) in each trade which is a high amount. 18 wrong trades and you'll be out of business. On the other hand with a 5 points target you're planning to get around 30% of the market average daily range every day, which is not impossible although very hard to reach even when you've been trading for a while.
I've to disclosure that I don't trade the ES contract but the basic numbers and common sense work with every trading issue.

Do your math. Good luck
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Good points by Hawker...

I wouldn't risk more than 2% of my stake on any trade. So, with
5K, that's a hundred bucks.

So, if you're risking a hundred bucks, try to make $300 when a trade goes your way.

Expect to be right around 30 to 40% of the time(if you're good)

Best of luck...
 
Moving from one vehicle to another is not going to address and correct the challenges you're currently facing. Sure sticking to one vehicle may narrow your focus, but it's not going to insure your success, then again nothing insures success.

I recommend that before you make that move, consider this:

Take a few days off, cleanse your mind and soul.

1) Stick to one stock

2) Reduce your exposure dramatically. If you normally trade 1,000 shares, trade 200.

3) Predetermine entry, stop and target. Keep a minimum risk reward ratio. I use 1:3. Use mechanical stops, not mental ones.

4) Start keeping a journal, and at the end of each trade write down what you attribute to the loss or gain.

5) Acknowledge your trading demons, respect them, and be conscious of them in every subsequent trade.

Your primary focus should be consistent gross profitability on a weekly basis. Once you've achieved that over a period of time, increase your exposure.

I too (like many here) have been there my friend. You will make the decision that's best for you. My input may not be what you're looking for, but it comes from outside of your forest. Good luck to you, and keep us posted.
 
Hi, I wonder if any of you have used the 21st Century Futures Morning Call service in trading ES? I've been paper trading with this daily newsletter for a couple of months now and found its calculation of the market quite accurate. I plan to start actual trading soon and would love to hear your real experience with this service(if any).

Thanks.
 
Quote from RAMOUTAR:


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5) Acknowledge your trading demons, respect them, and be conscious of them in every subsequent trade.
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RAMOUTAR gave you a very good list. #5 is very critical; always check your trading demons during a trade. Pay more attention to them than the market!Once you learn to co-exist with them, you will not let them control your fingers.

Chinook
 
Quote from chinook:



RAMOUTAR gave you a very good list. #5 is very critical; always check your trading demons during a trade. Pay more attention to them than the market!Once you learn to co-exist with them, you will not let them control your fingers.

Chinook
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Thanks, Chinook. I see demons as handicaps. I find it difficult and sometimes impossible to eliminate them, but if I acknowledge and respect them, all I do is learn how to work around them.

:)
 
If you are not ready to trade then don't. The replies you have received are good and it would be wise to pay attention.

I sudied and paper traded the emini for months before entering the market with my wallet. And I have a couple of years experience elsewhere too.

Unless you know your method works then don't put your money on the line. And I wouldn't even worry about my method until my head was right. I don't mean that rudely, but really try and learn discipline - if you don't you will lose. It is that simple.

Good luck!

Mark
 
IF you do want to try use IB and one of the free fornt ends.. I use Bracket Trader- which enable you to set stops and targets when you trade. That should enable you to conquer your money management weaknesses...
 
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