The transition to Futures trading

[MichaelD]

how can u guys tell his position size?

is he stuck 25k?

Very briefly at 4:30 you see 10 / 678.06 ... 652.10/652.70 on screen with an unrealized loss of -$25,464.88.

It's reasonable to assume that 10/678.06 is an open long position. The market is down 4% from this entry and he's blown up.

Traded too large.


Been there, done that.

 

[CanOz]

Not only did he violate his stop, but his daily stop as well...weekly, monthly...yearly

 

[kid hustlr]

jeez u blokes have a keen eye

 

[MichaelD]

Contrary trades to this small group is an interesting strategy. One would think they would smarten up and use this edge which would then be no edge.

Mate I sleep like a dog when I have an open trade in profit running. How do you do it? Trailing stop comfort? They tell me worry is good because that means there is risk somewhere and we gotta take risk to get the reward.

IG Client Sentiment is 100% pure entertainment for me and does *not* influence my trading at all. Often I find myself contrary to everyone else (even here in this thread!). This is intellectually interesting to me in that many of the posters here are consistent and profitable, just as I am, but they are often facing the exact opposite direction to me.


Once locked into a trailing stop, the only trade risk is slippage if the stop is hit. The trailing stop ratchets up/down automatically, so I don't have to worry about moving it. Slippage is rare and minor if it does happen. I can sleep fine with this.

When I initially started using the automatic trailing stop, I would watch it closely. 1000s of trades later, it's just a tool I use to stop me from needing to screen watch 24/7.

 

[barney]

Traded too large.


Been there, done that.

Ditto ...... Actually bought back bad memories ......

Probably should play that video before every trading session just to remind the brain of the potential downside when trading Maverick style:cowboy: .............:flush:

 

[cynic]

Ditto ...... Actually bought back bad memories ......

Probably should play that video before every trading session just to remind the brain of the potential downside when trading Maverick style:cowboy: .............:flush:

And here I was thinking that being a Maverick was a prerequisite for DAX trading!

Have you seen the way they ride that bourse?!

Texan Rodeo's look tame by comparison!

 

[MichaelD]

Blowing up is either;

1. The end of your trading.
"It's rigged"
"It was someone else's fault"
"It wasn't my fault"

or

2. The beginning of the next phase of your development as a trader.
"What did I do wrong?"
"How do I prevent this happening again?"


I have a weekly risk management meeting with my wife where I have to explain how much risk we are exposed to. This is designed to prevent me from getting carried away with position size when we have a particularly good week.

She often asks "why are you taking so little risk when you have so much more capital available?"

 

[>Apocalypto<]

Blowing up is either;

1. The end of your trading.
"It's rigged"
"It was someone else's fault"
"It wasn't my fault"

or

2. The beginning of the next phase of your development as a trader.
"What did I do wrong?"
"How do I prevent this happening again?"


I have a weekly risk management meeting with my wife where I have to explain how much risk we are exposed to. This is designed to prevent me from getting carried away with position size when we have a particularly good week.

She often asks "why are you taking so little risk when you have so much more capital available?"

Gold... really enjoyed that post Michael.

 

[cynic]

This advert is a close approximation to my earlier trading experiences:

www.youtube.com/watch?v=cPEf_q-_DGg

As for my more recent trading, I am happy to say that years of experience has enabled me to refine my trading style to the point where I am now able to blow up even more spectacularly than ever before!

 

[>Apocalypto<]

This advert is a close approximation to my earlier trading experiences:

www.youtube.com/watch?v=cPEf_q-_DGg

As for my more recent trading, I am happy to say that years of experience has enabled me to refine my trading style to the point where I am now able to blow up even more spectacularly than ever before!

you dont trade FX do you Cynic?

that was my deal... couple months on doing great followed by PAIN.:bricks1:

 

[cynic]

you dont trade FX do you Cynic?

No I certainly don't, but I am quite amazed at the number of people choosing to engage such a poorly regulated market.

I'm ashamed to say that FX trading is entirely beyond the scope afforded by even my heightened level of insanity!!

Fortunately DAX volatility has been amply stretching my comfort zones beyond breaking point thereby satiating my intense desire for self flagellation.

 

[>Apocalypto<]

No I certainly don't, but I am quite amazed at the number of people choosing to engage such a poorly regulated market.

I'm ashamed to say that FX trading is entirely beyond the scope afforded by even my heightened level of insanity!!

Fortunately DAX volatility has been amply stretching my comfort zones beyond breaking point thereby satiating my intense desire for self flagellation.

it took me 6 years but i do agree with that. very very hard.

Once i started to trade CL with IB i really enjoyed it and stopped trading FX but after buying a business i didn't have the cap to keep the ib acc.

I am enjoying trading WTI and GLD on CFDs not exactly where i want to be (back on the Full size Futs) but happy enough till i can get back there.

I looked at the dax but prefered the EUROSTOX50 over it... but the 50) is slow...

 

[CanOz]

it took me 6 years but i do agree with that. very very hard.

Once i started to trade CL with IB i really enjoyed it and stopped trading FX but after buying a business i didn't have the cap to keep the ib acc.

I am enjoying trading WTI and GLD on CFDs not exactly where i want to be (back on the Full size Futs) but happy enough till i can get back there.

I looked at the dax but prefered the EUROSTOX50 over it... but the 50) is slow...

+1 agree, FX is very difficult....too many variables to even consider it for me. If i was forced to trade it then pick one pair, one time of day etc...

CL and GC are ok for me, i like fast markets, but after three years of screen time on the DAX, its still my preference. HHI is second for me, but still a practice market for the next few years.

 

[skc]

Very briefly at 4:30 you see 10 / 678.06 ... 652.10/652.70 on screen with an unrealized loss of -$25,464.88.

It's reasonable to assume that 10/678.06 is an open long position. The market is down 4% from this entry and he's blown up.

Traded too large.

Been there, done that.

The GFC low in S&P was 666 in March 09. The video was uploaded in Jan 09 and his entry was around 678. So he actually went long pretty close to THE bottom. Today's S&P500 is 1880 so he would have been up around $600k.
Of course all my comments are made without regards to his account size and trading timeframe.

P.S. I don't swear at the market, but I do often swear at myself for being an idiot...

 

[>Apocalypto<]

Long WTI ent 102.27 SL 101.98 TP back at the high...

2nd HL cont range... looking for a break up to 102.58

 

[cynic]

The GFC low in S&P was 666 in March 09. The video was uploaded in Jan 09 and his entry was around 678. So he actually went long pretty close to THE bottom. Today's S&P500 is 1880 so he would have been up around $600k.
Of course all my comments are made without regards to his account size and trading timeframe.

P.S. I don't swear at the market, but I do often swear at myself for being an idiot...

According to my data the actual S&P 500 remained somewhere in the vicinity of 800 to 900 points in Jan '09 and didn't go anywhere near 678 until March.

This leads me to wonder how much lower the futures market went outside of hours!

I normally don't swear at the market, but have often sworn at Draghi, Bernanke etc. (Too often doth they speaketh and causeth profits to droppeth!)

 

[MichaelD]

Gloriously following the path of maximum pain for maximum market participants.

1. For those bullish, the day started with a plunge downwards to below the rounditis-enhanced support level, thus ensuring any stops would have been run right at the very bottom. I've marked the rounditis support level on the chart.
Didn't screen cap it, but IG Clients were buying on the open, so once again - maximum pain for them.

2. For those bearish, the day tempted the bears in early on and then quickly reversed on them.
Hence IG Clients are now selling into a rising market.


This type of intraday price action reversal is, in my opinion, the hardest of all price action to trade safely as it catches out both mean reverters and breakout traders.


I've made chicken scratchings only both ways today due to the very choppy price action, as well as the very tiny position sizes I've used. To be frank, though, I find just aiming for capital preservation is a good goal on these days.

 

[LinRegSlope]

Gloriously following the path of maximum pain for maximum market participants.

1. For those bullish, the day started with a plunge downwards to below the rounditis-enhanced support level, thus ensuring any stops would have been run right at the very bottom. I've marked the rounditis support level on the chart.
Didn't screen cap it, but IG Clients were buying on the open, so once again - maximum pain for them.

2. For those bearish, the day tempted the bears in early on and then quickly reversed on them.
Hence IG Clients are now selling into a rising market.

This is why I ditched FA for TA many eons ago. Prior to the SPI opening I had a Long bias for the morning activity, however I traded the short setup and not my opinion.
I made a comment earlier about whether support would hold at 5400, only for the market to rise 50 points off its low of the day.

 

[>Apocalypto<]

Long WTI ent 102.27 SL 101.98 TP back at the high...

2nd HL cont range... looking for a break up to 102.58

trade cut, failed to make a new high in this hour... back to the sidelines. gold looking shortish but still waiting.

 

[cynic]

This is why I ditched FA for TA many eons ago. Prior to the SPI opening I had a Long bias for the morning activity, however I traded the short setup and not my opinion.
I made a comment earlier about whether support would hold at 5400, only for the market to rise 50 points off its low of the day.

Around that time I had a take profit target of 5389 on one of my June short positions - missed it by that much!