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Five years ago, I would do 5-20 trades per day in the spoos, yen and Swiss
franc, I made money every week, but got burned out from the concentration
involved in looking at 3 minute bars from 7:30 to 3:15 five days a week.
Stress has nothing to do with if your methods are good or not, at least for
me. I have done thousands of trades, making or losing money is an end result
of my research of my methods and each of the last six years I have been
profitable.
When I mentioned "that I can't stomach the lows of trading" has
absolutely nothing to do with losing money or making it. I don't have the
concentration to look at every bar. My research has proven to me that the big
money is on the longer term play. Very seldom do I get burned for doing
overnight positions and some of my trades have lasted two years.
There are ways to trade the futures without unlimited risk. You buy one
May Corn at a certain level and at the same time you purchase two May Corn
puts. Yes, it will cut into your profit margins, but you have a way to trade
without unlimited risk and only the risk is losing the premium on the options.
Once the corn goes up so much, whatever you lose on the options, you move your
protective stops to lock in that loss as profit. Do I trade this way? Yes, but
only in some markets like Lumber and illiquid markets or if I am going counter
to strong seasonality patterns. In Orange Juice, selling December is usually
not smart, but if you buy calls for insurance, it can be profitable.
Oat
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