MCM

For any broker - best to seek out there own words. Margin Once you switch to a margin account - if your trading STOCKS - if you borrow money to purchase a stock - you will pay interest. I am not sure when IB charges it - there rates are low (money is cheap right now...right?). Regarding specifics - you can borrow up to 50% of the price of the security to purchase on margin. And you must maintain adleast 25% of the total market value of the securities you own within the margin account. (So if you have a portfolio worth 200K, you need to have adleast 50K in the account). If your a pattern day trader - you need to have at the bare minimum 25K in the account or 25% of portfolio - whichever is greater. So...if your looking for advice...I would tell you - forget the above. Dont trade on margin. Wait until you have 2 or 3 years of success under your belt. The reason your not making alot of money has NOTHING to do with not trading on margin. It has to do with either too early profit targets, too late of stop exits, or poor trade selection. There are a tremendous amount of very successful traders who trade unleveraged. If you want to leverage up - adleast get some solid success in the rear view mirror. Otherwise you are just asking to be blotted out quicker than the usual wash out rate. Remember...this is a profession. You don't start skiing on double diamonds or chutes in Jackson Hole. You start on the bunny hill. Enjoy the experience. Good luck

Damn DB...don't give away my system. I am about to open up the Tinfoil Hat Academy of Trading.

Interesting topic - especially in light of the Nikkei dropping 7% in one day this week. Much larger brains than my own grey matter have attacked this from various angles. We tend to listen to the ones that jive internally with our own thoughts. Christine Hughes recently kicked out a video: [ame=http://www.youtube.com/watch?v=AR3TyfKTeNE]OtterWood Observations on Japan, May 2013 - YouTube[/ame] Kyle Bass - been talking about Japan for a long time [ame=http://www.youtube.com/watch?v=ZY6IEpKRA7Y]Kyle Bass March 14 2013 - YouTube[/ame] The quote most memorable to me - came from one of Mauldin's old books (and Bass used the same phrase in the vid above) - monetary policy wise - Japan is a bug in search of a windshield. Does it help my trading? Nope. Timing is the problem when it comes to these things. I don't have enough government largesse behind me to stay liquid while making the big bet. Hopefully it brings on the volatility - that is good for us traders. Otherwise it is mental masturbation which ultimately feels good - but doesnt do anything to improve my daily life. I will sometimes play one of these talking heads in the background while I take apart price action on a chart. That is what improves my daily P&L. A Nod to all the Veterans out there - this weekend is to remember your service. Cheers.

Hoop Jumping = filtering out people who just want to chill. Plan on busting your backside for the next 10-20 years. Lots of hours. Sprinkle in some fun. Find a lowly starter job in the field you want to be in. That includes menial degrading work. Work hard. Rinse/Repeat. After awhile, all of those mad skills you acquired while in school will start paying off. Or - more than likely, it will be your work ethic that will get you promoted. Get promotions. Get more money. Acquire more mad skills. Rinse/repeat. Suddenly you have arrived. Then you can open up your HFT shop. With your money. Because chances are no one else is going to give it to you until you prove your success. Good luck. Only took me 23 years since college to get to where I am today. (Havent yet gotten to chill.But soon.)

Technical analysis does not have to be complicated; however, we have a tendency to follow what is when it comes to the markets. I did years ago, but eventually realized the majority of what is taught is nonsense. I don't know how all this nonsense started, but it's been going on a long time and continues. Most do not side-step this black hole on the way to finding the truth, if they ever do. You don't have to or can get out of it now. Greg Capra President & CEO Pristine Capital Holdings, Inc. As an educator - I would hope you have the enlightened viewpoint that some of the "nonsense" that you do not understand/comprehend/have an ability to use in your trading - actually comes from rather fascinating roots. As an example - the median line was born from Dr. Alan Andrews - who borrowed knowledge from Roger Babson - who took great lessons from Sir Isaac Newton. Three men - no nonsense in any of them. (OK Babson was a prohibitionist - I would tell him that was nonsense over a beer.) Two of the three went on to make a tremendous amount of money trading - using tilted lines! Just because one doesn't understand a method or how to PROPERLY use a method - does not mean that it has no value. Teach your students your method. Show them how it works wonderfully for you. Then set them free to learn on their own. Encourage them to seek knowledge in all places. Perhaps they use it - maybe they don't. But don't disregard some of the wildly successful methodology of other traders because it doesnt suit your personality. PS - next time you have a hard time believing a tilted line - tilt your head. It will be straight. Cheers

Save your money...trading a contract that has a notional value of 65K with a 1200 dollar account is asking for the big leverage stick to whack you quickly. A mere 120 dollars...which is 12 ticks on 1 contract, 4 ticks on your 3 contracts you mentioned..is 10% of your account. If you think you can survive long risking 10% per trade - send me your 1200 dollars...Ill send you back 600 dollars and you will be getting a better deal than AMP or anyone else will offer. Paper trade until you save enough. No way to save enough? Find another job...and save the money. Remember the hours you worked to save that money. Than when you trade the 10-20K in your account..you will remember how long it took to obtain. Market isn't going anywhere anytime soon. And I assume you are not trading to support yourself. Good luck.

One of the better brief articles I have read....I see myself in a few of the reflections (jumping out of a trade due to fear when it first starts going against me) as well as taking a trade that isnt quite up to my criteria. Fortunately - I am starting at a few coffee rings and crumbs on the desk - so I have hope. Enjoy a good day...thanks for the post. Paul

Reminds me of the scene in Animal House - when Belushi's character (Bluto) is responding to a pledge being suspended - and wails to the gods "Did you say over? Nothing is over. Was it over when the Germans bombed Pearl Harbor?". Entertaining - but let's not desire it to be factual as well. Mitsu, I think we need to check your lithium levels. Your on a rant worthy of Dennis Miller hopped up on chocolate covered coffee beans dipped in meth. Somewhere I see the good Doctor - err scratch that - the good LPC - leaning back in his chair - scratching his beard (you do have a beard right Rande? Since were throwing stereotypes around like cheap nerf footballs) - delighting in the fact he doesn't have to have you on his couch. Somewhere in TL Hall of Fame, this thread should be bronzed and memorialized.

[quote name= Amazingly, my observation is that traders resist the heavy emotional lifting to do this because of their own beliefs and feelings about uncertainty. They would much rather live in their explanations of what “should be” according to their brain’s need to bring order to markets that they outwardly acknowledge defy deterministic interpretation. Historically embedded beliefs and feelings color their perceptual world that keeps them from the very thing they want most. The deeper question is: are you willing to re-order the way you understand and act in your world for the sake of becoming successful in trading? As you embrace this question (or not), a path opens before you – simply because you ask the question. One way or another, this question is answered in your performances in trading and the impact those performances have on your trading account. And whether you explore new, more effective, ways of understanding the “self” that trades. Trading provides the path you travel. The journey is yours. Rande Howell www.tradersstateofmind.com Lol - well Mitsubishi - my guess is you will choose the other path. Cheers all. "The report, by its very length, defends itself against the risk of being read." - Winston Churchill

"It is very difficult to be watching the graphs for several hours a day and wait for it to occur only 2x a week and thus makes it actually quite difficult. I would like something that I can do more actively, rather than be the hunter who waits for his prey for hours/days" Print that statement out. Show it to your current mentors. Really think about what you are saying. "It is very difficult to watch the squigglies for hours on end, only for an opportunity that comes around 100X/year, and makes the people who I am learning for lots of money. Instead I would prefer to pay more commissions to my brokers, learn something entirely different than what my mentors are teaching me, and not wait around for stellar opportunities, but click a mouse button more frequently" You have a huge advantage over most new traders - you were taught patience out of the starting gates. Your way ahead of the curve. Have your mentors help you understand that advantage and further encourage it. Congrats. It was one of the harder lessons I had to learn. Enjoy the stalking.

I just got a warm feeling inside Tams.. Both optimists and pessimists contribute to the society. The optimist invents the aeroplane, the pessimist the parachute. — George Bernard Shaw

Were you really looking for advice? Or someone to pat you on the back and say "great system - thanks for posting - I am going to trade the exact same way". Since posting - you have argued with each person who offered a suggestion (except those ones which wouldn't truly change your "system" - changing verbiage to first person. Even then - you argued on where you were going to put that advice. You have listened to experts saying "dont overcomplicate" your system - but you don't believe them. (Why listen?). You don't want to concentrate on watching 1 currency pair - because watching 9 seems less boring. Are you hear to entertain yourself or make money? Do pro coaches in football (since the sports analogies are flowing in this post) show 9 different game tapes at once to their players during Monday and Tuesday tape review? Tell me with great intimacy the turning points and price action of your favorite currency pair from last Wednesday. Can't do it? I would venture that the top traders who post around here could give you a play by play on their favorite instrument - to ridiculous detail. So...let me offer this to you. Your system looks great (that is what you wanted to hear - correct?). Trade it. Spend only capital you can afford to lose. Re read this post in 6 months. That is my advice. Cheers

Congrats on not getting into the indicator funk. Free stuff in various places of the internet. Basic supply and demand stuff from Sam Seiden at FxStreet (of some benefit)...also highly recommend spending time perusing the huge amount of free material at medianline.com - it takes S/D to a brand new level. Good trading

Winners (in this arena) take calculated risk with the full knowledge that position may go to zero. Despite that loss - their account/capital/company won't be decimated. Charlatans/incompetents/thieves take risks with the full knowledge that IF the position goes to zero - so does their account/company/OPM (other peoples monies) Another curious example of someone who will get a golden parachute, and not spend a day in jail despite likely illegal activities (rumored to have moved client money after an audit late last week). I am certain as CEO he had no knowledge of any wrong doing. Run a state into the ground. Run a company into the ground. Hell - he should be elected president - he can finish the job our current house of fools have started. (both sides...) Cheers

Market was cascading lower. You had the direction right. Half the battle one. The market move on the 5th/6th looks around 200 ticks or so - thus I would call that a reasonable place to place a pivot low (8270 area). As soon as the market rolled over and went below that Sept 5th low - that 83821 high becomes a new pivot high. (it isnt an important high UNTIL that previous low is taken out) On a market going down - a reasonable entry is to short near previous pivot highs. Thus this retracement to that area was logical place to short it with stop above. Remember - a pivot high isn't confirmed until their is a new pivot low achieved. (and vice versa - a pivot low isnt confirmed until a new pivot high is achieved). Any moves within the previous swing (from pivot high to pivot low) is just noise. Nothing more. Your way ahead of where I was when I was a beginner...my dumb arse would have been trying to bottom pick. Congrats.

[ame=http://www.youtube.com/watch?v=vIMwMsY0ndo]YouTube - Stock Futures Trader losses it all and flips out[/ame] Warning - adult language present. I laughed once again when I watched this...

On a clear morning (tomorrow) - print out your last paragraph and have a friend/spouse count the # of rationalizations you crammed into it. That alone should tell you what to do come Monday morning's opening. 13K winnings recently (according to your post) and you are fretting over a 3K loss? Seems odd. Either you are a savvy trader who has been hit on the head with a large anvil and forgotten your skillset, or you have been lucky. If it is the latter - sell now , take the 10K as a seed fund - and find a mentor. If it is the former - go to the ER and get evaluated for a concussion. Leverage will kill you - just ask the door on the receiving end of the crowbar. You may escape this trade if you hold it. And it will only re-enforce the behavior which will eventually cause you to blow up in a spectacular fashion. No axe to grind. Just giving you my two cents. Good luck.

Nice three day string Dinero....when are you thinking of moving back off the sim? Have recently revamped my trading system - trading small but consistent for the first time - ever. July is going to be a light month happily due to vacations - but will start posting again in August!

Pivotal Errr...perhaps you missed it. See Bernie Madoff example for another ridiculously unthought through example. He had years worth of statements. I guess the other examples I provided werent sufficient as well. It isnt difficult to trade two opposite accounts on a daily basis. It is painfully easy to fabricate anything with Adobe photoshop. In other words - I wouldnt trust anything from anyone. If someone showed you a ridiculous performance record - would you just blindly trade what they are trading? If so - you are not long for this world of trading. And let me know about all of the personal and professional history of anyone who has ever provided a service for you - that I am sure you are asking for. Must be very tiring to check on so many things. Dry cleaners, mechanics, physicians, accountants, lawyers. In the end - there is one person responsible for the P&L in your account. The person clicking the button. Why does it concern you so much if people choose to pursue education? Remember - the purpose of education is to gain knowledge in areas you are lacking. Nary a MBA grad has left business school and become an instant millionaire. Hell - most MBA professors have failed in their businesses multiple times. It does not mean their lessons are worthless. Some of the greatest lessons I learned in medicine were from RN's...who didnt have 1/10th the training I did - but had developed some specific ways of dealing with various patients. Should I ignore those lessons because they arent physicians? Could go on with many more examples...I will spare you. If you want to specifically create critiques of various trade rooms - go ahead - might be beneficial. But once again - blanket criticism is unwarranted and not beneficial to the room. As Mad Market mentioned - most peoples expectations for trading rooms are way beyond what they should be. You mentioned that you have spent four years trying to find someone who wasnt a fraud. Seems like wasted time to me. But, we may have different goals. Good luck on your pursuits. I am sure the room would like to know if you ever find a non charlatan. Have a nice day.

To add to the confusion... Showing a statement is not a guarantee. I could simply trade opposite in two accounts. Each and every day. Show the person who wants to see an account statement whichever one has been positive. Ask Bernie Madoffs clients about their statements. Perhaps some of you dont need a room to become successful traders. Others have found them to be beneficial and help cull us along to become financially successful traders. I have tried one room - and still am in it - due to the amount of help it has given me in preventing over trading, dealing with the psychology of trading, and the camaraderie amongst other traders in the room. It has been more than worth it in my own opinion. And since you are spending your own money - the opinion of others - in the end - doesn't matter. In the end - it is a living "trading book". Every day I have an author who is talking to me during the trading day. I have a bookshelf of books - and I didnt bother asking any of the authors for their profit and loss statements. Have you ever seen Mark Douglas P&L statements? Chances are 80% of people in this room have read his book(s) (Trading in the Zone, Disciplined Trader) and received some benefit from it. So - what does it matter if he is a winning trader??? Ever seen your typical General Contractors own home? Most of them are in a shambles. But they do excellent work on YOUR house. So do you automatically discredit them because their own spouse cant get them to finish a project at their home? Ever hung out with a group of psychiatrists? They often have their own personal demons. Just because they do - doesn't mean they cannot be of help to you. I just find it a bit distasteful to rip on "all" rooms because of your own experience. Buyer beware. Just like there are lousy books - there are lousy trading rooms. And as mentioned above...there are no holy grails. You seek people who can strengthen your own weaknesses. In the end - that will make you a better trader. Just my two cents.

Well - took a bit of time to get a new account via transferring money. Consider my chapeau thrown into the ring.

Id swear you were a pilot - only other place I have other heard that piece of advice is from my buddies who are Navy pilots. Enjoying the Race - thinking it might just be worth it to open up an account or pull some cash out of one account to get below the starting minimum amount.

Will re-read it - a good thought. Seems like 99% of my battle is between my two ears.

Was in sim a little bit this week in trialing out trading in and out of multiple contracts. Thus light trading - which proved to be of benefit in the P\L statement. Used my Dorman account to trade some of the nicer set ups, while in sim mode on the TS account. Those trades worked out nicely. Perhaps there is a nugget of lesson to be learned there. (take only those trades that make you walk across the room and enter on another computer) Wonder if my thick skull will absorb it. Managed to get up in the sim - but have concerns that I would go nutso with a loss out of the gate if I was trading multiple contracts. (disclosure: 3 contracts on the YM with a 20 pt stop is a large position for me...lol...realize that is potentially laughed at with some of the traders around here. Trying to not blow up an account. Typically still trade 1 or 2 contracts) Question for the group - what was the one trick you used to "let go" of the fear of losing money. Removed my profit/loss/position marker off the top of the screen this week so it was no longer visible - and it seemed to help - but wondering if there are any other "techniques" that people have used. I still have a tremendous urge to be right on the first trade of the day - sets the tone. Realize I need to get away from that and just treat each trade as a small step in a journey. But finding it tough. It isnt that the loss of 5-10K would hurt me financially...it wouldnt. (Happily I have a nice paying stable job...for now) But I think the damage it would do to my psyche and continuing on in trading would be enormous. Just cant seem to shake the "lock in profit" syndrome - and thus can have a nice string of winners - but not get hugely ahead in the account. Thanks for any wisdom...