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Ron wrote:
> RT's,
>
> Iam a very short term scalping type Index trader currently trading
> with an online brokerage only been with them two weeks. My account size
> is 8K. I want to be able to trade Dow contracts but they require a 5
> lot order. No one lots. They charge $15 a turn on mini's. So if you
> want to do 2or3 contracts at a time and go in and out 3-5 times per
> session commissions become the killer running between $100 - $225 per
> day. Thats too much daily overhead. Then of coarse you can trade the
> regular SPX for $20 a turn but you have too risk around $500 to use a
> 2pt. stop and thats 6-7% of your account equity. Its hard to trade in
> an emotionally grounded clear fashion risking this much on each trade.
> I know there's Timber Hill but no Dow or SPX capability e-mini's only.
> Any of you veteran traders out there got any ideas???
>
> Greatly Appreciated..........Ron
Ron,
You got alot more guts than I do. I wouldn't want to trade any mini
index product with less than
30K in my account and that is allowing for my 25 years experience. I would
suggest to beginners to have 50K in their account. I also think that one
should have minimum profit targets that properly
cover the risk involved. I think someone trading E-minis should shoot for a
minimum $6 swing and
try for at least $10 as an average if daytrading. Short term position
traders should try for 4% or more
of the underlying value on a swing. This minimum profit margin parameter
will keep you from trading too much for too little.
Any other chickens out there or is it just me?
Cluckingly,
Norman
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