I'm a complete rookie at day trading, and am a RIA, so that sounds odd, I'm sure. But, my discipline and money management is based on a system, and I do not deviate. For example, if one the "four shock absorbers on the car" isn't working correctly, I scale back equity positions, or can be all cash by Investment Policy Statement.
I'm a performance-based RIA, and only work with retirement assets. i.e., those who have a time horizon of 3-5 years or longer, as well as the Clients who are seeking growth, as well as monthly income. YTD, I am up 90bps. Down from being up over 6% two months ago. Of course, the markets are down approx 15% YTD, so current Clients are happy with my "performance." However, it's the prospective Clients I have been talking to who have almost driven me nuts.
They're "running for the hills" (all cash, and have been that way since the start of 08.) I'm hearing from REFERRALS (not cold calls. That was when I was new, and was even un-popular back then. Hell, I don't like geting up at dinner for a call of some kind of political survey, etc., so I don't market myself that way):
* "Stocks!!!!:eek: NO Fu**ing way. (click) Tell my friend _____ that he's nuts to be in stocks."
* "Investment Advisor?? You been watching the news? This market is going to go straight down."
I could go on, but won't. Needless to say, confidence is WORSE than I observed during 2000-2002.
I've mentioned here before that I would like to transition my Clients to someone on the investment committee in about three years, and trade in my own account, as the "scene" has changed from the recovery in 2003 up to now, and it's not a pretty one. None the less, we'll get through these times. I don't particularly care for the way retail brokers, insurance agents, etc., have become blood thirsty with an "it's all about me attitude." The regulators have... Well, they're who they are. And, the prospective clients are so mixed up by the 24hr news, brokers who could give two shits about them, that they're doing some really scary stuff with their money.
For the past two years, I have been reading the board, and trying to drill down into what I "may" be good at as far as day trading, and swing trading goes. I'm more into options, and futures for my own account, even though equities, bonds, cash, and alternatives are part of the system I use for managing retirement assets. Therefore, I am a 100% green horn at day trading imo! My system, and a daytrader's system are probably "ocean's apart," so I'm asking for advice from those of you who do this for a living. Yes, a RIA asking for advice. One thing's for sure. When it comes to making money, I can put pride on the shelf to learn from those who have been there before, and are currently doing the job well.
So here's what your rookie did:
I opened a paper trading account after focusing on ES posts/threads here. I've been going through the journals, posts, and threads for some time.
I set up the chart tabs at 1min, 5min, 10min, and 60minutes. I'll monitor volume, and RSI in each tab. In addition, I have added Bollinger bands simple method, period 20
SMA 5, and 20 on all tabs
It's strange, but I have been placing one-two trades per day, and am looking for a trend (or breakout) to either go long or short. I'm entering at 100 contracts with a .50 stop, and getting out rather quickly. Here's an example:
At 13:31 I entered a buy limit at 1263.75 for 100 ES contracts. I got two fills, then two seconds later I got the rest filled.
At 13:32 (and 43 seconds. LOL!) I entered a limit to sell at 1264.75, and it got filled. I made $5,000 What???:eek:
I know I put my pride on the line to learn something here, so tell me what you guys think. All I did was watch the ES tick up past the 5minute, almost crossing the 20, and entered the limit order. Bollinger bands were gapped apart a good bit. $5,000 in less than two minutes?? What! In after hours trading last night, I wound up with $1,250 on 100 contracts by going short, then buying .25 cheaper.
I've been talking with retail brokers/advisors who have been "in the business" for 15-25 years, and only one knew what the ES was, and that was very limited as the conversation switched to inflation quickly. (some/many brokers do this when they don't know an answer instead of saying "I don't know. I'll find out for you.")
I'll accept all the responses you guys want to give to this, and appreciate your time. This is the point where I "empty my cup" so I can learn. Thanks guys!
I'm a performance-based RIA, and only work with retirement assets. i.e., those who have a time horizon of 3-5 years or longer, as well as the Clients who are seeking growth, as well as monthly income. YTD, I am up 90bps. Down from being up over 6% two months ago. Of course, the markets are down approx 15% YTD, so current Clients are happy with my "performance." However, it's the prospective Clients I have been talking to who have almost driven me nuts.
They're "running for the hills" (all cash, and have been that way since the start of 08.) I'm hearing from REFERRALS (not cold calls. That was when I was new, and was even un-popular back then. Hell, I don't like geting up at dinner for a call of some kind of political survey, etc., so I don't market myself that way):
* "Stocks!!!!:eek: NO Fu**ing way. (click) Tell my friend _____ that he's nuts to be in stocks."
* "Investment Advisor?? You been watching the news? This market is going to go straight down."
I could go on, but won't. Needless to say, confidence is WORSE than I observed during 2000-2002.
I've mentioned here before that I would like to transition my Clients to someone on the investment committee in about three years, and trade in my own account, as the "scene" has changed from the recovery in 2003 up to now, and it's not a pretty one. None the less, we'll get through these times. I don't particularly care for the way retail brokers, insurance agents, etc., have become blood thirsty with an "it's all about me attitude." The regulators have... Well, they're who they are. And, the prospective clients are so mixed up by the 24hr news, brokers who could give two shits about them, that they're doing some really scary stuff with their money.For the past two years, I have been reading the board, and trying to drill down into what I "may" be good at as far as day trading, and swing trading goes. I'm more into options, and futures for my own account, even though equities, bonds, cash, and alternatives are part of the system I use for managing retirement assets. Therefore, I am a 100% green horn at day trading imo! My system, and a daytrader's system are probably "ocean's apart," so I'm asking for advice from those of you who do this for a living. Yes, a RIA asking for advice. One thing's for sure. When it comes to making money, I can put pride on the shelf to learn from those who have been there before, and are currently doing the job well.
So here's what your rookie did:
I opened a paper trading account after focusing on ES posts/threads here. I've been going through the journals, posts, and threads for some time.
I set up the chart tabs at 1min, 5min, 10min, and 60minutes. I'll monitor volume, and RSI in each tab. In addition, I have added Bollinger bands simple method, period 20
SMA 5, and 20 on all tabs
It's strange, but I have been placing one-two trades per day, and am looking for a trend (or breakout) to either go long or short. I'm entering at 100 contracts with a .50 stop, and getting out rather quickly. Here's an example:
At 13:31 I entered a buy limit at 1263.75 for 100 ES contracts. I got two fills, then two seconds later I got the rest filled.
At 13:32 (and 43 seconds. LOL!) I entered a limit to sell at 1264.75, and it got filled. I made $5,000 What???:eek:
I know I put my pride on the line to learn something here, so tell me what you guys think. All I did was watch the ES tick up past the 5minute, almost crossing the 20, and entered the limit order. Bollinger bands were gapped apart a good bit. $5,000 in less than two minutes??
What! In after hours trading last night, I wound up with $1,250 on 100 contracts by going short, then buying .25 cheaper. I've been talking with retail brokers/advisors who have been "in the business" for 15-25 years, and only one knew what the ES was, and that was very limited as the conversation switched to inflation quickly. (some/many brokers do this when they don't know an answer instead of saying "I don't know. I'll find out for you.")
I'll accept all the responses you guys want to give to this, and appreciate your time. This is the point where I "empty my cup" so I can learn. Thanks guys!
