Emini S&P 500 Day Trading Journal

[emg 12]

plan on going long 1305.75

[emg 12]

plan on going long 1305.75

 

order pending.................

[emg 12]

1pt profit!.....................

[emg 12]

what are your order types, it sounds like you could benefit from using trail stops. As your tight risk management would fire off limit and stop order very quickly. Also if your confident in a price than you might benefit from buying simple options like a long call to cover the slippage on your market orders?

 

 

I don't use stop, I add to average when the market goes against me, and i counter trend trade.

[PVstudies 10]

I don't use stop, I add to average when the market goes against me, and i counter trend trade.

 

I found your thread by accident and glad I did.

 

In the past 2 days I misread the shorts and was forced to hold my long through the afternoon. It paid off, but holding that long and seeing all the missed positions leave me thinking that I want to critically refine when and how I cut losses. I've been paper trading for 60days a PV and using averages successfully for 21 days. (pv/gaussians)

 

You mention a 10% cap. How does the averaging work for you when it goes wrong, do you consider 10% a hard cap?

 

Thanks

[emg 12]

Good Morning Traders!

[emg 12]

I found your thread by accident and glad I did.

 

In the past 2 days I misread the shorts and was forced to hold my long through the afternoon. It paid off, but holding that long and seeing all the missed positions leave me thinking that I want to critically refine when and how I cut losses. I've been paper trading for 60days a PV and using averages successfully for 21 days. (pv/gaussians)

 

You mention a 10% cap. How does the averaging work for you when it goes wrong, do you consider 10% a hard cap?

 

Thanks

 

$100K per contract which i believe to trade in the high risky futures market especially in the emini s&p 500. The biggest mistake when traders add is not knowing their risk. For example, if i added 1 pt against me, my average price move only 1 tick. I just increase my risk by increasing the leverage. if the market continues to go against me my drawdown doubled and those that have small account are doomed. Let say i added if the market went against me 10pts, my average price move 7pts near the market price. That reduces my risk from adding every 1 pt against me vs adding 1 contract when the market goes against me 10pts.

 

If one knows HOW to add and WHEN to add, he/she will be a successful traders.

[PVstudies 10]

If one knows HOW to add and WHEN to add, he/she will be a successful traders.

 

Thanks, I'm starting on emini /esh1(CME)... Most of my doubles are correctly placed and have a good exit within 2-3 bars (5min).

[emg 12]

plan on going long 1301.25

[emg 12]

plan on going short 1330.50

[MightyMouse 12]

emg,

 

you have stated a few times that you feel that a trader should have 100k to trade 1 emini s&p contract. Several times through out the thread, you have added to you losing position. Does that mean that you have 100k for every contract you add?

[emg 12]

Good Morning Traders!

[emg 12]

plan on going long 1307.25

[emg 12]

Good Morning Traders!

[emg 12]

plan on going long 1288.00

[emg 12]

plan on going long 1288.00

 

 

order pending.....................

[emg 12]

order cancel. looks like long squeeze formation

[Cory2679 11]

emg claims you need $500,000 to trade the ES http://www.traderslaboratory.com/forums/f3/what-standard-capital-requirement-trade-emini-9460.html#post114453

 

and essentially emg risks his entire account to make one point...one contract's worth (not considering a margin call, etc.)

 

So that's risking $500,000 to make $50 (10,000 to make 1)

 

1 losing trade results in a loss of $500,000. It takes 10,000 winning trades to make $500,000 (which would take years and years and years)

 

EDIT: Of course, you wouldn't even really break-even because losing your entire account is not breaking even...I guess as your account grows the risk:reward gets worse and worse...so anything short of a 100% winrate results in a wipeout...and with emg's $500,000 requirement, that's gonna hurt most people pretty bad.

 

Although, perhaps (i haven't backtested) with $500,000, maybe never in the history of the ES would he be stopped out for a loss.

 

In order for this method to work, it would indeed require a 100% winrate.

 

Again, these numbers aren't 100% realistic because I didn't consider margin calls or commission, but it makes the point.

 

Like I said, with such conservative leverage, this method could be viable, I don't know. What I wonder is how anyone would ever rack up $500,000 in the first place to be able to trade this method...certainly not from trading profits.

 

I guess would emg suggest one must save $500,000 from other sources before starting to trade (and then risk it all over and over to make $50 a pop)?

 

I just think this thread is pretty dangerous to newbies...and I've seen it praised...and I just don't get it...what is the point of this thread anyway?

 

This method is a little like a ponzi scheme (although not unethical like a ponzi scheme)...you may make money with it, but enjoy it while it lasts because sooner or later it's gonna blow up...just hope you die before it does I guess.

 

emg, correct me if i'm wrong

Edited March 11, 2011 by Cory2679

[MadMarketScientist 11]

I don't think you'd see many, even the most conservative of traders who would say you need $500K to trade the ES. One persons opinion.

 

MMS

[emg 12]

Good Morning Traders!

[emg 12]

emg claims you need $500,000 to trade the ES http://www.traderslaboratory.com/forums/f3/what-standard-capital-requirement-trade-emini-9460.html#post114453

 

and essentially emg risks his entire account to make one point...one contract's worth (not considering a margin call, etc.)

 

So that's risking $500,000 to make $50 (10,000 to make 1)

 

1 losing trade results in a loss of $500,000. It takes 10,000 winning trades to make $500,000 (which would take years and years and years)

 

EDIT: Of course, you wouldn't even really break-even because losing your entire account is not breaking even...I guess as your account grows the risk:reward gets worse and worse...so anything short of a 100% winrate results in a wipeout...and with emg's $500,000 requirement, that's gonna hurt most people pretty bad.

 

Although, perhaps (i haven't backtested) with $500,000, maybe never in the history of the ES would he be stopped out for a loss.

 

In order for this method to work, it would indeed require a 100% winrate.

 

Again, these numbers aren't 100% realistic because I didn't consider margin calls or commission, but it makes the point.

 

Like I said, with such conservative leverage, this method could be viable, I don't know. What I wonder is how anyone would ever rack up $500,000 in the first place to be able to trade this method...certainly not from trading profits.

 

I guess would emg suggest one must save $500,000 from other sources before starting to trade (and then risk it all over and over to make $50 a pop)?

 

I just think this thread is pretty dangerous to newbies...and I've seen it praised...and I just don't get it...what is the point of this thread anyway?

 

This method is a little like a ponzi scheme (although not unethical like a ponzi scheme)...you may make money with it, but enjoy it while it lasts because sooner or later it's gonna blow up...just hope you die before it does I guess.

 

emg, correct me if i'm wrong

 

GOOD QUESTIONs!!!!!

 

 

Absolutely good!!!!.

 

 

More than 90% of small traders lose trading in the futures market. Of course, majority of the people do not have $500K unless that person won a million dollar lottery.

 

The question is, how do i get $500K.

 

Proprietary Trading firms (Legit prop firms) invest new traders a standard minimum $50K to trade for the 1st 6 months. If that new trader is making money, the prop owner will increase the the capital (leverage) from $50K - $100K.

 

After 1 yr and the new trader is still in the game and making money, the prop owner will increase from $100K - $200K or so on.

 

Remember, the prop owner gets at least half of the new trader monthly profit plus other fees. After all, prop owner gives new trader the require capital needed to trade.

 

You will notice most of the hedge funds owners, hft owners, prop owners and fund managers, begin their trading career as a prop trader. As the years go by as a prop traders, their monthly income increase from $10K per month to $50K per month. After 5 yrs of a prop trader, they made so much money and have enough money to open a hedge funds or a prop firm or maybe decide to trade on their own. If he/she decides to trade own, they have $500K saved up to start to make a comfortable living after 5 yrs of being a prop firm

 

To be continue

[emg 12]

plan on going short 1300.25

[emg 12]

GOOD QUESTIONs!!!!!

 

 

Absolutely good!!!!.

 

 

More than 90% of small traders lose trading in the futures market. Of course, majority of the people do not have $500K unless that person won a million dollar lottery.

 

The question is, how do i get $500K.

 

Proprietary Trading firms (Legit prop firms) invest new traders a standard minimum $50K to trade for the 1st 6 months. If that new trader is making money, the prop owner will increase the the capital (leverage) from $50K - $100K.

 

After 1 yr and the new trader is still in the game and making money, the prop owner will increase from $100K - $200K or so on.

 

Remember, the prop owner gets at least half of the new trader monthly profit plus other fees. After all, prop owner gives new trader the require capital needed to trade.

 

You will notice most of the hedge funds owners, hft owners, prop owners and fund managers, begin their trading career as a prop trader. As the years go by as a prop traders, their monthly income increase from $10K per month to $50K per month. After 5 yrs of a prop trader, they made so much money and have enough money to open a hedge funds or a prop firm or maybe decide to trade on their own. If he/she decides to trade own, they have $500K saved up to start to make a comfortable living after 5 yrs of being a prop firm

 

To be continue

 

The idea of being a professional trader is to trade other markets and not only 1 market. Need to diverse. For example, my es trading represent 1% of my total trading income. However, based on the substantial risk involves trading in the es and based on my portfolio risk, $100K per contract in the es is reasonable and best risk management based on my portfolio. In fact, i believe it should be $100K per contract to be safe for the next flash crash

 

To be continue

[emg 12]

plan on going short 1300.25

 

order pending................

[emg 12]

plan on going short 1300.25

 

order cancel. missed by 2 ticks