What If ES drops -100 points,

If you are sweating bullets over this type of scenario, trade options instead...Granted, there are "complications" such as buying calls and puts when the IV's are imploding, but on balance in a relatively stable volatility environment, you can fill on the ES futures options reasonably well...It won't work for scalping, but if you are holding for a bit of time and playing 5-10-20 pt moves, then this might work for you...There are alot of people who would rather just have their worst case scenario be the premium paid for the options.
 
Does Ninjatrader really only require $500 for 1 ES contract? I must be reading that wrong. 500 would be wiped out in a 10 point move.
 
Handle123 said:
I co-owned a Futures brokerage in mid 90's, we used $25k to trade one Big S&P500, I got out cause stress was too much. Let's say you own a brokerage and you have 1,000 clients, 750 are trading 1-2 contracts at $500, and if their protect stops get hit and there simply isn't any fills for 50 or 100 points, all your clients think were doing a two lot and had $1,000 in their account, what you think are the chances those 750 are going to send you $4,000/$8,000 plus fees to cover the losses? Oh, that comes to $3,000,000/$6,000,000 plus fees. You think most small brokerages can cover this? A ton of small commissions not going to cover all those losses if clients don't wire monies.

Have you ever been in a situation where there was simply no orders? Were you trading 1987, I placed a sell order and got filled 10 points lower, $5k, margins jumped to $50k, guys had dropped few million including the government FBI String traders had lost million. Forgot what trader cleaned up in T-Bond pit.
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What the heck is an "FBI String trader"? If it's a conspiracy theory forget I asked.
 
probably the government "sting traders" that were busting traders in the pit back in the 1980's...I forget the details, but I believe it had to do with pre-arranged trading and the like.
 
der_kommissar said:
probably the government "sting traders" that were busting traders in the pit back in the 1980's...I forget the details, but I believe it had to do with pre-arranged trading and the like.
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Got it, lots more google hits with "sting" than "string"! Looks like your memory was correct, it became public in '89.
 
conduit said:
You will lose all your money and more with such approach to trading. First, you are way over leveraged with 2 contracts on 5000 dollar deposit. (you should never start trading with 5k only to begin with, it's called undercapitalization). Then when you lose money in your account and especially more than you deposited you should consider it game over (game because you pretty much approach this business like a gambler) and NOT look how to wire in more funds. Makes zero sense unless you have money to throw away. Why don't you donate the money for a good cause? You will be way more satisfied with the results.
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Just stop with this bullshit (you should never start trading with 5k only to begin with, it's called undercapitalization).

Idiot
 
Typical Elitetrader.com attitude:

* name calling without even providing any line of reasoning for disagreement
* no logic
* no argument
* mostly self deflection because user is a beginner himself and makes same mistakes

BondTrader001 said:
Just stop with this bullshit (you should never start trading with 5k only to begin with, it's called undercapitalization).

Idiot
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Sig said:
What the heck is an "FBI String trader"? If it's a conspiracy theory forget I asked.
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Misspell, back in the 80s the FBI had traders in the pits trying to find who were doing conspiracy of illegal trading. For the retail trader back then, it was slippage too often, I recall few times got filled outside the range of the day, you had to monitor each trade as each tick in S&P500 was $25.
 
Handle123 said:
Misspell, back in the 80s the FBI had traders in the pits trying to find who were doing conspiracy of illegal trading. For the retail trader back then, it was slippage too often, I recall few times got filled outside the range of the day, you had to monitor each trade as each tick in S&P500 was $25.
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Thanks, I just read up on it. Interesting stuff.
 
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