No more than a 1 point stop (so I am risking $50)... and remember im only taking two trades a day. (for the first week)
IF you take a position, you have done your research and see evidence to go long (or short ) , you see price bouncing off a pivot...
or three legged kicker , so I will place the stop at the bottom of the green candle when price moves up .
and if I want to be really conservative..... I could place my stop right at the price that I bought it for (if I see lots of momentum moving price upwards).....that way if I get stopped out I wont even lose anything (just pay the commissoin)
then of course as prices moves towards my target, I could raise the stop up a bit...that way guaranteeing a profit.
You can easily check your margin call level by subtracting (# of contracts X intraday margin) then you'll see the unrealized loss needed before the margin call threshold. Of course if you keep your total risk to 10% or less governed by the stop loss you should never reach it unless one ignores the stop and averages down.
This is the famous FT71 intervention audio recording well recommended if you're starting out. It sounds like the guy may have averaged down to greater than 30 contracts where he seemed to have lost total of $130k in 3-6 months. FuturesTrader71 | Trader Analysis 2011-09-01
( you can see the "monkey" reminder when Big Mike says TGIF on Fridays
The main thing is to "stay in the game" long enough to learn how to at least break even which is a whole phase by itself, then do well. Most have to struggle. There are a very few geniuses who get good in half a year, but what are the chances.
Start with $5k account.
Trade in mini-futures like M6E or Forex at .01 or .02 lots, or small shares (200 or so) on the SPX.
If 40% drawdown (around -2k), then quit live trading for 3 months, research and regroup before coming back. & maybe
Once 50% gain, then ok to add more to account. so at 7500, 10k, etc. One big lucky trade doesn't count.
If continuing profitably until $12k reached, then ok to trade 1 full futures contract instrument. At least $20k for 2 contracts. Some stick to $30 or $40k before going to 2.
you have been in sim for 5 weeks--i assume with profit---why should you change anything? only thing i would do is pay very close attention to your emotional state while trading real money--and whether that emotional state causes you to veer away from your trading plan.--
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