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Lee,
Affirmative, I can second that . . . the best advice I was ever given early
on was, "trade your size".
Once you feel you have mastered what you are doing with one contract
"slowly" increase it one contract at a time. When you start losing or stops
become too tight for the risk you are willing to take , back down to the
prior position and stay there until the account grows to the point the risk
becomes acceptable.
This dramaticly affected my trading success levels. Bottom line early on, I
was trading way too may contracts. I dropped back to one and worked my way
up.
don ewers
----- Original Message -----
From: "Lee Morris" <LMorris@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, November 08, 2001 8:35 PM
Subject: RE: [RT] Day Trade the emini?
> It is good that you are paper trading but one suggestion I would make is
> after you are having consistant success paper trading move quickly to
> trading the smallest position possable as the game will change as you
> experiance slipage and the emotions. I have found that I trade different
on
> paper and almost the same regardless of size. So IMHO many people paper
> trade too long and then increase the size too quickly on actual trades
only
> to learn this difference exists. If you can even scratch trade that is
great
> experience.
> -----Original Message-----
> From: Sean Cassidy [mailto:scassidy@xxxxxxxxx]
> Sent: Thursday, November 08, 2001 9:29 PM
> To: realtraders@xxxxxxxxxxxxxxx
> Subject: [RT] Day Trade the emini?
>
>
> But would you daytrade the S&P emini? I simply dont have enough cash to
> use a sufficient swing trading stop. I have also found the quality of the
> fills to be better than stocks but the brokers we have used anyway have
not
> always been very good in terms of losing fills etc. I have had raesonable
> succes paper daytrading the emini S&P off of the pivot and support lines.
> ----- Original Message -----
> From: Norman Winski
> To: realtraders@xxxxxxxxxxxxxxx
> Sent: Thursday, November 08, 2001 2:07 PM
> Subject: Re: [RT] The SEC just regulated me out of a job........
>
>
> Earl,
>
> I must respectfully disagree with some of your statments below. If
> one
> takes small positions in futures, there is no reason one can not
achieve
> a
> diferisified porfolio with $25,000. I also think that most ag
futures
> are
> easier to trade than stocks, as the historical ranges tend to be much
> more
> predictable. Additionally, I find the fills in futures to be faster
and
> better than stocks. On the other hand, I wouldn't recommend day
trading
> most
> commodities, but then again I wouldn't recommend day trading most
> stocks, as
> I think it is a fool's paradise and a broker's dream.
>
> Respectfully,
>
> Norman
>
>
>
>
> ----- Original Message -----
> From: "Earl Adamy" <eadamy@xxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Thursday, November 08, 2001 8:26 AM
> Subject: Re: [RT] The SEC just regulated me out of a job........
>
>
> > If there is one thing I harp on for new traders, it is adequate
> > capitalization and maintaining a conservative risk per trade profile
> which
> > will insure that a few bad trades do not bust the account. While an
> account
> > size of less than $25,000 may be adequate for some modest trading in
> stocks,
> > it is not adequate for trading futures unless one has a pool of
> substantial
> > liquid assets which can be immediately re-deployed to the futures
> account.
> > Secondly, the prudent trader will risk no more than 2-3% of account
> size
> per
> > trade ... and one must keep in mind that sudden moves combined with
> high
> > leverage in futures can blow a trade right through the stops and
blow
> out
> > the account. Just recently bond traders were treated to a near
> > instantaneous $2,500 per contract move which blew through stops.
> >
> > Finally, I would mention that trading stocks is a simpler task than
> trading
> > futures. While the emini are most similar to stocks, agricultural
and
> > industrial futures contracts are an entirely different animal and
are
> not
> as
> > well regulated as stocks ... in many cases the pit trading is
stacked
> > heavily against small traders.
> >
> > Earl
> >
> > ----- Original Message -----
> > From: "Norman Winski" <nwinski@xxxxxxxxxxxxxxx>
> > To: <realtraders@xxxxxxxxxxxxxxx>
> > Sent: Wednesday, November 07, 2001 5:55 PM
> > Subject: Re: [RT] The SEC just regulated me out of a job........
> >
> >
> > Sean,
> >
> > I think you are right, you should go with trading the E-Minis. Of
> course,
> > if you don't like working so hard, I would just buy futures on some
of
> those
> > rediculously depressed commodities that on any any thought of
economic
> > recovery will sprint at least 20-40%.
> > I have been extolling the virtures of Coffee, Cotton, Copper,
> Soybeans,
> > Silver, & Sugar on this and other lists for several weeks. For
> example,
> > since the low about two weeks ago, Dec. Cotton has rallied from 2820
> to
> 3223
> > = over $2,000. Most of these markets have margin requitements that
are
> > between $1,000 - $1,500. Of course, I don't recommend using all
> equity
> for
> > margin, in fact I try to maintain a 5 to 1 ratio of equity to
margin.
> When
> I
> > get very agressive, I may let this ratio drop to 3 to 1. Anyway,
> there
> are
> > still some great deals out there and all you have to do is put on
the
> > positions and wait. Some of these markets are at 30-40 year price
> lows.
> If
> > you buy them now, and they only get back to their old support
levels,
> you
> > will make lots of money without much work or spending a fortune for
> > brokerage commissions.
> >
> > Of course past results is no guarantee of future performance. .
This
> type
> > of investment may not be appropriate for your retirement account,
your
> kid's
> > college fund, or Aunt Tillie in Toledo's bingo fund. You can lose
> > everything you have ever had or will ever hope to have trading
futures
> or
> > stocks, especially if you follow my advice and everyone stops
eating,
> > drinking coffee, using electronics, or stops using clothing or
> blankets.
> >
> > Best Wishes,
> >
> > Norman
> >
> > ----- Original Message -----
> > From: Sean Cassidy
> > To: realtraders@xxxxxxxxxxxxxxx
> > Sent: Wednesday, November 07, 2001 2:10 PM
> > Subject: [RT] The SEC just regulated me out of a job........
> >
> >
> > I was just informed by my broker that I am fortunate enough to
meet
> the
> > SECs rewuirements as a "Day Trader". I have been essentially swing
> trading
> a
> > small account because, well, I dont have enough cash to open a big
> account.
> > I tend to get out of my losers very quickly and hold on to my
winners
> for
> 2
> > or more days. I thought thats what trading was, cut your losses, let
> your
> > winners run. For example I had 2 longs and 1 short going into
> yesterdays
> > rate cut. My short (INTU) was stopped out for a $1.30 loser but one
of
> my
> > longs (WEBX) made me $3.50 and another (EBAY) is currently up about
> $2.
> This
> > of course makes me a day trader although i held WEBX for 3 days and
> have
> had
> > EBAY for 2 and counting. The reason is that about 5 times a week a
> trade
> > goes bad and I have to get out in the same day. My plan is working
> very
> > well, I am up about 5 points this week already and make at least a
> little
> > money almost every week. But because I do not have $25000 the SEC
has
> forced
> > my broker to shut down my account for a week. I am currently
averaging
> a
> > return of about 10 -13%....per month. I think I know the answer to
> this
> but
> > outside of finding a loan shark.........is there anything I can do
> about
> > this?
> >
> > By the way......I am allowed to trade futures and/or options. I
> think I
> am
> > about 2 for 20 on options trades over the years and accept the fact
> that,
> at
> > this point, I just dont have enough knowledge to make money with
them.
> Or
> I
> > could trade the E MIni S&P, with its margin of 10:1...that is
> obviously
> much
> > less risky than doing 50 to 100 share lots of a stock with a proven
> method
> > (sarcasm).
> >
> > Any help would be appreciated...or maybe I just needed to vent a
> > little....looks like I am shut down after making 10% most months. I
am
> now
> > going to look for my man Huggy Bear to see if I can get one of those
> 88%
> > (per month) easy payment loans.
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
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Service.
> >
> >
> >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
> http://docs.yahoo.com/info/terms/
> >
> >
>
>
>
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