I've gone back to trading 5 contracts, after trading 1 contract for a few days.
I totally understand the wisdom of trading single contract, but it doesn't work for me during the 930 to 4 trading hours.
During the quieter period, I stick to trading 1 contract (if I hold more than 1, I risk not being able to close all my positions given the low volume), put in my stop loss, set a profit target, and take my eyes off my charts to do some other stuff.
But once the US market opens, trading 1 contract has caused me to hold a position through deep retracements that drive me crazy. Once I came out losing less than what I earned for that day after sitting through almost the entire trading session. Yesterday, I lost more than 3 points shorting (I'm a bear by nature, I just can't go long no matter what the news and my head tell me) when ER2 retraced. I gave up right at the point that it began its 12-point plunge.
I don't know what's wrong with me.
What I do know is that I'm most confident and comfortable trading this way: I wait - sometimes for up to hours - and pounce on those movements that I've been HOPING (again, I know it's a bad word to use, but what else can I do in an erratic market like this?) to see once they emerge. I go in with 5 contracts for a quick ride, and scram when price starts to hesitate or turn up a tick or 2 against me (unless it gaps).
I started monitoring ER2 5 hours before US market opened today, and figured I had one shot - a fierce profit-take - at shorting, after which the only constant remaining is UNCERTAINTY.
Having been with cats for almost half my life might have something to do with my trading style. After all, I do spend A LOT MORE time with them than with people.
I totally understand the wisdom of trading single contract, but it doesn't work for me during the 930 to 4 trading hours.
During the quieter period, I stick to trading 1 contract (if I hold more than 1, I risk not being able to close all my positions given the low volume), put in my stop loss, set a profit target, and take my eyes off my charts to do some other stuff.
But once the US market opens, trading 1 contract has caused me to hold a position through deep retracements that drive me crazy. Once I came out losing less than what I earned for that day after sitting through almost the entire trading session. Yesterday, I lost more than 3 points shorting (I'm a bear by nature, I just can't go long no matter what the news and my head tell me) when ER2 retraced. I gave up right at the point that it began its 12-point plunge.
I don't know what's wrong with me.
What I do know is that I'm most confident and comfortable trading this way: I wait - sometimes for up to hours - and pounce on those movements that I've been HOPING (again, I know it's a bad word to use, but what else can I do in an erratic market like this?) to see once they emerge. I go in with 5 contracts for a quick ride, and scram when price starts to hesitate or turn up a tick or 2 against me (unless it gaps).
I started monitoring ER2 5 hours before US market opened today, and figured I had one shot - a fierce profit-take - at shorting, after which the only constant remaining is UNCERTAINTY.
Having been with cats for almost half my life might have something to do with my trading style. After all, I do spend A LOT MORE time with them than with people.
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