I've deleted this post coz the more I read it, the more I feel it's really bad influence.
I needed to rant yesterday, and everyone was asleep.
Not deleting the comments though, in case Mark checks back.
6 comments:
Mark Perkins
said...
yeah, I don't get hard stops either. stocks and indices are so dynamic something could change that could signal you no longer need a stop. I think it's good for people starting out I guess bc it takes the emotion out of it. But, you have to listen to the market and not some arbitrary dollar loss.
I've never traded futures before. I really want to now with just a contract or two to start out. Do you know a good brokerage to go with that has low account minimums? If not what broker do you recommend.
To the best of my knowledge, if you're not trading very big contracts (like hundreds and thousands), Interactive Brokers is by far the one that offers the best deal.
Its margin is by no means low though - it's 4000 to 6000 for emini futures (I think NQ is 4000, and ES is 5000. TF is 6000).
I personally don't recommend brokers that offer very high leverage ie. requiring minimum margin. The higher margin requirement is actually good for you. $500 margin requirement will see your position being liquidated when your trade move against you from ticks to a couple of points. And the broker will be very happy to continue to offer you subsequent new $500 accounts after each one that's been wiped out.
Interactive Broker's commission is low - it's $4.80 per contract per round trade.
I don't know if there're better deals out there, or good brokers that ask for slightly lower margin requirement (avoid those that ask for minimum of $500!).
You might be surprised that I've cut & paste this blog entry & read it a few times :)
I'm still an amateur in the e-minis futures trading thing but from your past trade entries you seemed to be in good control of your trades. At least I've seen that you have profitable trades sometimes a few days in a row.
You've listed out the support & resistance level where you would base your entry & the high probabiilty chart pattern(s) that you would look for.
Is it better that you focus on trading the time-zone where you've past experiences of higher probability of success & stick to it. If the optimum price level, chart pattern, trading setup don't appear during this time zone, just walk away.
I understand that you've been caught at the wrong side of the trade due to certain announcements around 11.00am, 1.30pm etc. so I think it's sensible you are avoiding to trade during such timings for the time being.
I hope you'll forgive me if what I've commented is not practicable.
No offence taken, Tony. Appreciate your observation and advice :-).
You actually kept the junk I wrote? LOL!
I removed it coz of what I wrote about hard stops. I totally think that for those who are just starting out, hard stops are necessary to protect their account, especially if they are trading leveraged instruments. When I wrote what I wrote that day, I was thinking about me and me only. Selfish and irresponsible.
Yes, timeframe is something I pay attention to. When I saw some really good trades yesterday, I didn't go in coz it was during the time of the day that I make it a point to stay out of market. No regrets. There're some rules that I do follow :-)
No, I wasn't caught by surprise that day. In a very very twisted way, I chose that day to test my threshold for pain. You have to know me to understand how I learn. All my life, I've never submitted to authorities and never listened to anyone who wanted to protect me from danger. As a very small kid, I've put my hand in fire and all kinds of things to get a sense of how vulnerable humans are. :-)
Yup I avoided the market for the past 2 days.
I finally went in during the asian hours today. Wasn't any better. Felt like I was caught in a crossfire between bears and bulls. Couldn't help shaking my head as I sat and watched the tape....Totally staying out of US hours...I'd rather watch the voting.
They just have to choose today so they can attribute repercussions to the curse of black friday I guess.
6 comments:
yeah, I don't get hard stops either. stocks and indices are so dynamic something could change that could signal you no longer need a stop. I think it's good for people starting out I guess bc it takes the emotion out of it. But, you have to listen to the market and not some arbitrary dollar loss.
I've never traded futures before. I really want to now with just a contract or two to start out. Do you know a good brokerage to go with that has low account minimums? If not what broker do you recommend.
Hi Mark,
To the best of my knowledge, if you're not trading very big contracts (like hundreds and thousands), Interactive Brokers is by far the one that offers the best deal.
Its margin is by no means low though - it's 4000 to 6000 for emini futures (I think NQ is 4000, and ES is 5000. TF is 6000).
I personally don't recommend brokers that offer very high leverage ie. requiring minimum margin. The higher margin requirement is actually good for you. $500 margin requirement will see your position being liquidated when your trade move against you from ticks to a couple of points. And the broker will be very happy to continue to offer you subsequent new $500 accounts after each one that's been wiped out.
Interactive Broker's commission is low - it's $4.80 per contract per round trade.
I don't know if there're better deals out there, or good brokers that ask for slightly lower margin requirement (avoid those that ask for minimum of $500!).
Perhaps the others can suggest...
thanks a lot for explaining that
You're most welcome, Mark :-)
Hi Jules :
You might be surprised that I've cut & paste this blog entry & read it a few times :)
I'm still an amateur in the e-minis futures trading thing but from your past trade entries you seemed to be in good control of your trades. At least I've seen that you have profitable trades sometimes a few days in a row.
You've listed out the support & resistance level where you would base your entry & the high probabiilty chart pattern(s) that you would look for.
Is it better that you focus on trading the time-zone where you've past experiences of higher probability of success & stick to it. If the optimum price level, chart pattern, trading setup don't appear during this time zone, just walk away.
I understand that you've been caught at the wrong side of the trade due to certain announcements around 11.00am, 1.30pm etc. so I think it's sensible you are avoiding to trade during such timings for the time being.
I hope you'll forgive me if what I've commented is not practicable.
Take care,
Tony Chai
No offence taken, Tony. Appreciate your observation and advice :-).
You actually kept the junk I wrote? LOL!
I removed it coz of what I wrote about hard stops. I totally think that for those who are just starting out, hard stops are necessary to protect their account, especially if they are trading leveraged instruments. When I wrote what I wrote that day, I was thinking about me and me only. Selfish and irresponsible.
Yes, timeframe is something I pay attention to. When I saw some really good trades yesterday, I didn't go in coz it was during the time of the day that I make it a point to stay out of market. No regrets. There're some rules that I do follow :-)
No, I wasn't caught by surprise that day. In a very very twisted way, I chose that day to test my threshold for pain. You have to know me to understand how I learn. All my life, I've never submitted to authorities and never listened to anyone who wanted to protect me from danger. As a very small kid, I've put my hand in fire and all kinds of things to get a sense of how vulnerable humans are. :-)
Yup I avoided the market for the past 2 days.
I finally went in during the asian hours today. Wasn't any better. Felt like I was caught in a crossfire between bears and bulls. Couldn't help shaking my head as I sat and watched the tape....Totally staying out of US hours...I'd rather watch the voting.
They just have to choose today so they can attribute repercussions to the curse of black friday I guess.
:-)
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