abuguapo

I use Interactive Brokers to trade stock index futures (specifically the emini Russell 2000..symbol TF in esignal). I don't think I'm nuts (though if I am or not...I guess I'm not the one to say)...but here is the thing, for the longest time I chalked it up to being paranoid...risk adverse...a 'newbie'...'life in the markets' etc...but it seems I can't win but (seemingly) half the amount that I can (easily) lose. I realize this is why you have to be discriminatory about when to enter...but on a more empirical...nuts and bolts...factual level...what I want to know is...is it possible that IB is netting the spread on every trade I take? (in addition to commission? My commission is nothing really...compared to the amounts I'm losing) Again and again...if I win (and say I win a decent amount) it's always a bit less than expected...and then if I lose...seemingly just several tics (say 3-5)...it's almost (ALWAYS) twice the amount expected. So one or two two trades in a day might yield X amount (several hundred dollars)...but then price action contracts...I get in...price goes against you a couple of tics (honestly just several tics)...get out...and I've just lost a couple of hundred. "But it was just a couple of freaking tics" - I scream...(bird in tree outside: blink...blink)...I live alone no one is offended except me. :doh: Seems to take a breakout to make a couple of hundred but a small scalp against my position (that gets me out because my stop is too close...blah blah blah) but the move has only moved against me 4-5 tics...and ouch...wtf...how can that have cost me so much? It's obvious the odds seemed stacked against you (as a small newbie) except in the case that you catch a larger move and ride the consensus...otherwise you can be chumpbait for scalpers etc. BUT is there an equation baked into the formula of buying and selling from the brokers side (the trade exchange?) where they net the spread? I know this is done in forex...anyone know if they do so or are allowed to do so in a regulated market? In regulated markets who decides what the spread (difference between bid and ask price) will be...and who is pocketing that amount (difference when you do take a trade/side) in the market? Anyone know...excuse the ignorance. Best, g

Steve46...(or anyone who might have an opinion)...I've often wondered about the potential of pre-market trading as being a method of (simply) finding good market placement before the 9:30 crush. It seems that (I'm simply picking a number out of the air) say 30-40% of the time - if you were to simply 'go with' the current market action you'd be well placed through 9:30 - 10 crush. But then when best to get into the premarket action? (for instance I've seen things start at times as early as 3 or 5 or 7...with a definite bump (in volume) happening around 8-8:30. Does anyone (who would care to chime in) do this as a matter of practice? Any resources as suggestions where a 'lemming' like me might look for answers...any help is much appreciated...hope this is still on topic for thread... g

Tradewinds - I really appreciate what your saying on the topic of risk, it's fresh (to me at least). Thanks for that. Looking at the chart from Ingot again - do you see a place of entry that speaks to what your saying about risk? Where would you have gotten in and why? How to you 'see' risk (in setup) vs safety? Hope that makes sense... Ingot thanks (for all your contributions) for the great topic and great commentary. g

This past April I wouldn't have qualified for Professional Trader Status as defined by the IRS so my filing - when it does occur this coming spring - will be as a regular investor. So now I'm having to consider/understand the implications of the mark-to-market election and navigate the subtleties of the wash sale rule...though I can easily type the terms I have to look up the basic definitions every time I do (a source of some consternation). Here is the thing. I will only be day trading the emini S&P 500 Futures [ES] market (and perhaps some emini Gold Futures [YG])...that's it...exclusively those futures markets...and in some of the research materials I've been able to source (for instance Robert A. Green's "GTT Guide: Accounting for trading gains and losses") they state quite plainly: "Guide Highlights Accounting for trading gains and losses is complex and very difficult for most traders...For securities and some currencies traders, figuring out your trade accounting can be a nightmare and cost you too much valuable time and money...Commodities traders have it easy; their brokers send them a Form 1099-B showing "Aggregate Profit or Loss" and they can simply enter that number to their Form 6781." Can anyone confirm (with confidence) that; in the case that I don't qualify for Professional Trader Status (as defined by the IRS) but solely trade (as my main form of income) Futures markets...specifically the ES (and perhaps the YG) that - come tax time - all I do is submit this 1099-B with the "Aggregate Profit and Loss" section filled in...(paying my 39%+ in tax?)...and I'm done...I'm in the clear...no audit...uncle Sam is happy? In other words do the ES and YG future markets qualify as those future markets that can be processed by way of the 1099-B? (I understand that some single stock future markets don't qualify and so must be processed by way of the mark-to-market election) even if I haven't qualified for Professional Trader Status? Being slightly slow on such topics makes me easy prey for big mistakes when filing in the spring...I just want to make sure I have my ducks in a row. Sorry for the length - any help is much appreciated, gg

Brownsfan - I realize it's been a while since you created this thread - but having found it (while having some of the same questions myself) I was wondering what solution/software you ultimately settled with? if any? Any help is much appreciated, gg

…hence the need to recognize your edge. Never trade without knowing – seeing your edge. This means you have to be discriminatory about your trading, it means you won’t chase the markets. So my question (to anyone willing to take it seriously) is: how do you manage your time (day trading) BETWEEN trades? No doubt a lot of time is spent looking at charts but there is also the hazard of getting into a kind of trance that isn’t especially alert. How do you pass the time (day trading) while staying sharp…on your game? Any thoughts? :missy: gg

Thanks (both) SpyderTrader and DugDug for the thoughtful responses - I'll take all your suggestions into account in forming my own strategy. Thanks Brownsfan for keeping it real. Does anyone have any suggestions about good resources on the topic? Anybody read anything that speaks to this specific issue? Cheers, gg

Thanks Brownsfan, And I guess you've captured the essence of my question. So you are figuring out your monetary requirements - on a say bi-weekly (monthly?) basis? In other words you don't have set % you abide by? I.e...I always give myself 30%...the trading account gets 30%...and 30%+ to retirement? Is that because you don't know how much you'll make on a given month coupled with fluctuating monthly bill requirement? In short - you don't have set rules because you can't (no one can) predict how much they are going to pull in - not to mention you can be down - a given month? gg

For anyone who already trades for a living: It seems the more specific the MM topic, the harder it is to find any information on it. I was wondering if any of those who trade for a living would care to share anything on the topic of paying yourself ie. trading for a living while paying yourself on a weekly basis/ bi weekly basis. How do you take profits? i.e. not "how do you technically take profits from a trade on the chart" but "how do you take profits to put in your checking account after you've won?" Do you use a formula that gives you a percentage and then kick some back to your trading account? What accounting do you use to pay yourself - to pay your mortgage or your car payment? Philosophy, practical implementation, any reads you recommend?...anything. And if you'd care to mention; input on minimum size of account you think necessary to maintain while at the same time being able to make enough to pay yourself as you trade. Any help is greatly appreciated, gg