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With $10.000 I wouldn't even trade futures, except maybe some of the
smallest. I would do only stocks, and not on margin. Once you are at
$25.000 you may consider the smaller contracts like CAC or so. But if
you got to that number through stocks you might as well continue what
has already proved to work... and not use futures, which are an entirely
different and more difficult game.
Gwenn
Marlowe Cassetti wrote:
> M. G., Here is my suggestion. Find or develop a trading system that
> you can verify, through backtesting, that has a positive expectancy of
> profit. I recommend EOD trading rather than daytrading. Remember
> that 100 test cases proving you have a good system has an uncertainty
> of 10%. Once you are satisfied you have the system to trade, develop
> a trading plan that outlines exactly what you are going to do to trade
> this system. There are many books out there that talk to developing a
> plan. I recommend Van Tharp's book on trading. With $10,000 you need
> to remember that you cannot risk very much with each trade, so stick
> with markets that are appropriate. You are starting out at a big
> disadvantage with such a small starting equity. You need to do a lot
> of analysis to prove that your system won't make you go bust. I've
> done it with a small account, but my system doesn't take big
> risks. The statistics for futures daytraders is pretty sobering. A
> lot wash out. Therefore my recommendation to start out with End of
> Day trading. If you can't make a go of EOD, don't move to daytrading
> thinking that will do the trick. It will only get worse! I hope this
> helps. Just one man's opinion .. Marlowe
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