What kind of approach can make you INSANELY rich?

Overnight said:
*choke*

Please tell me how you can enter a position of 250 contracts on the ES with $5K? Does it require some magical leverage with options or something?

To enter 250 contracts in ES with my broker I would need $100,000. If I were to enter the $100,000 position with that amount of capital in my account, and it went down one tick, I'd be margin-called in 3 seconds.

So please tell me how your hypothetical could be actualized? Through which broker and with what method?

Remember, you stipulated that the max capital you have to work with is $5K. Please, make it so.
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No magic leverage, you just need basic knowledge about the ES and you should be able to read correctly what is posted. For some people that might be a problem apparently. It is clear you never traded the ES.
I will copie first part of my posting and mark red what I want to explain to you.
Here we go:
  • Starting capital: $5,000
  • Margin: $1,250
  • Commission: $5 per RT
  • Net profit per day: 2 points
  • Maximum position: 250 contracts
Margin means the amount of money you need to trade 1 contract. So starting with $5,000 I can only trade 4 contracts.
As we all were speaking about compounding I specified max 250 contracts traded size. This means that when compounding the profits I would never go over 250 contracts.
For 250 contracts I would need $312,500 margin with my broker (250 times $1,250).

You really have no clue how I can go to over $ 5 million do you? Because then you would not ask the questions you asked.

I will add a small piece of the simulation in excel. Maybe you will understand it then, you never know... Each day you see if their is enough margin to raise the size.

upload_2017-2-11_23-52-38.png


YOUR BROKER ONLY NEEDS $100,000 for 250 contracts ES???? CHOKE :wtf:

Everywhere in my posting it was mentioned that it was compounding. My posting was a reaction to the previous posting that said that daytraders cannot profit from compounding. So your statement:Remember, you stipulated that the max capital you have to work with is $5K. Please, make it so. Is fake.
 
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Mtrader said:
  • Starting capital: $5,000
  • Margin: $1,250
  • Commission: $5 per RT
  • Net profit per day: 2 points
  • Maximum position: 250 contracts
Margin means the amount of money you need to trade 1 contract. So starting with $5,000 I can only trade 4 contracts.
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Then why does it say Maximum position: 250 contracts, rather than 4 contracts?

And in that fancy little ladder you posted, there is no negative. Are you being real, or fantastical?
 
Overnight said:
Then why does it say Maximum position: 250 contracts, rather than 4 contracts?
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Because of the compounding. Google the word "compounding". You start with four contracts (as you only have margin for 4 contracts at the start) and as the account grows due to compounding you can increase size.

Overnight said:
And in that fancy little ladder you posted, there is no negative. Are you being real, or fantastical?
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The assumption was: make in total net 2 points a day. That means that the sum of all trades in 1 day should be at least net +2 points.
I can add every day a losing trade of 1 point and an extra winning trade of 1 point to arrive at 2 points net a day if that makes you happy.

:banghead:
 
Mtrader said:
...

The assumption was: make in total net 2 points a day. That means that the sum of all trades in 1 day should be at least net +2 points.
I can add every day a losing trade of 1 point and an extra winning trade of 1 point to arrive at 2 points net a day if that makes you happy.

:banghead:
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Then do it in real life. Anyone with half a brain knows what compounding is. What the hell is the point of posting hypotheticals?

By the way, the max position limit for the ES is 50 contracts. You can't have any more than that as a speculator in a single position. So your analysis is flawed on the time-scale.
 
Overnight said:
Then do it in real life. Anyone with half a brain knows what compounding is. What the hell is the point of posting hypotheticals?

By the way, the max position limit for the ES is 50 contracts. You can't have any more than that as a speculator in a single position. So your analysis is flawed on the time-scale.
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Yawn... I go to sleep.

trump.jpg
 
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Mtrader said:
Yawn... I go to sleep.
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My point is, stop trying to feed people fantasies. Someone with $5K in their account cannot legally day-trade and make $5 million in any reasonable time-scale. You're imputing too much risk into the minds of the people here who are trying to trade with mitigated risk. That does not help the trading community, it just puts it into turmoil.
 
Overnight said:
Ahh, I see you edited your post 1 minute after my retort. Well, those quotes are from Oct 2015. Maybe things changed between then and now, because I look at only the NOW and what I can SEE in reality, not what people post they "did" over a year ago somewhere online.

http://www.cmegroup.com/rulebook/files/position-limits-cme.xlsx
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Could you indicate where you see the position limit as 50. I see it as much much greater. I see the contract size as 50, but that is something entirely different.
 
USDJPY said:
Could you indicate where you see the position limit as 50. I see it as much much greater. I see the contract size as 50, but that is something entirely different.
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I don't currently have access to a computer that can open an Excel file. Let me call the CME and ask them directly. I thought that spreadsheet showed the position limit of 50.
 
Overnight said:
I don't currently have access to a computer that can open an Excel file. Let me call the CME and ask them directly. I thought that spreadsheet showed the position limit of 50.
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Oh well, they are currently closed. Can't answer the question. When I have an answer, I'll post it.
 
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