Trading with a Stop Loss in the Futures Market is for Losers
- Thread starter emg
- Start date
the capital requirement to trade in the futures market a minimum $500,000. To day trade es, 1 contract equal $100,000. $500, 000 account is still consider small trader. $5 million is recommended to trade in the futures market.
There is no such thing to trade in the futures market as little as $5000. High volatility and High Leverage do not equal $5000 to start trading in the futures market. Small Traders will lose and continue to lose being duped by using price action and TA methods.
Higher Education is required with strong advanced Math or math degree to trade in the futures market. There is no room for small traders to trade in the futures market. They will just lose being led price action and TA method will make them a successful trader.
More than 90% of small traders lose! They just lose!
Higher Education is the key to become a successful trader!
Higher Education!
http://www.elitetrader.com/vb/showthread.php?s=&threadid=236628
With $5K or $5M on the account there is no difference: day trading only makes sense on leverage, which means smaller move constitutes higher relative risk and higher reward. It's amazing how "higher math education" people don't get such a simple idea. 
Which consequently means STOPS aka cut your losses. Not necessarily hard stops, but mental at least.
Day trading ES on $5M account without a leverage and extracting say one handle a day on average equals to just about 1% ROC per month. Who needs to sit in front of screens all day for that?
P. S. One ES contract is $85K, not $100K. Surprising looseness in numbers for "higher math education" fan too.
P. P. S. I use about $2000-2500 to trade one NQ contract. With tight stops. Do they regularly get hit? Absolutely. Is it something bad? Absolutely not, stops are meant to be hit to protect my capical and I say thank you stops for protecting me.
Which consequently means STOPS aka cut your losses. Not necessarily hard stops, but mental at least.
Day trading ES on $5M account without a leverage and extracting say one handle a day on average equals to just about 1% ROC per month. Who needs to sit in front of screens all day for that?
P. S. One ES contract is $85K, not $100K. Surprising looseness in numbers for "higher math education" fan too.
P. P. S. I use about $2000-2500 to trade one NQ contract. With tight stops. Do they regularly get hit? Absolutely. Is it something bad? Absolutely not, stops are meant to be hit to protect my capical and I say thank you stops for protecting me.
Stops are insurance. Like all insurance, they cost money. It is very possible, easy actually, to doom a particular trading plan by "over-insuring" (misusing stops). What is insidious about that is the untrained eye will not even notice.
The kind of stops depend on the kind of trading. It needs to be done correctly. Most people don't even know the proper way to figure it out. Some people figure it out by experience.
The kind of stops depend on the kind of trading. It needs to be done correctly. Most people don't even know the proper way to figure it out. Some people figure it out by experience.
Only time I don't use a stop is when trading news or with a predetermined setup with a point or so target or minimally time-based scalp.
Other than that, I ALWAYS have a catastrophic stop in place, based on money. Sometimes, I'll adjust the stop after I've entered to match the structure of the market, but only in my favor. If I get a quick larger then expected move I'll replace the catastrophic stop with a protect profit trail.
Just as important, I only use brokerages/FCMs that maintain orders server-side... orders are not maintained on my client-side rig.
Trade On!
Other than that, I ALWAYS have a catastrophic stop in place, based on money. Sometimes, I'll adjust the stop after I've entered to match the structure of the market, but only in my favor. If I get a quick larger then expected move I'll replace the catastrophic stop with a protect profit trail.
Just as important, I only use brokerages/FCMs that maintain orders server-side... orders are not maintained on my client-side rig.
Trade On!