Hi! I am new to trading and the forum, but think I have found a goldmine of information here. Kinda hard to even know where to start.
I bought David Marsh's eminitradingstrategies (ES) several years ago but never got beyond some sim trading. Have just recently came back to it and have been watching all his videos again. I like the simplicity of his system, and he seems to be a pretty honest guy. I am going to sim trade his normal entry system and try to master it. I will trade one contract on the ES at the open with an 4/8 profit/stop. I use NinjaTrader, trading on the 578 tick chart with and 2584 tick as confirmation, using his rules. My target is 4 ticks a day. In fact, 4 ticks will probably always be my goal and, if successfully, I can see myself trading 3-4 contracts. If I can "master" one strategy THEN I would like to expand to other markets or systems just to have an alternative. I would also like to eventually learn options but I don't feel I'm ready for that right now.
Any advice? Are there are recent David Marsh users here? Is this a viable plan to get to say $100 profit/day?
I am going to go back and begin reading the forum starting with the psychology forum. Just want to introduce myself and hopefully get some feedback.
Give yourself lots of time. Quadruple whatever time you anticipated you would need to succeed at this. Do not quit your main job before you consistently make money trading live markets. No one can teach you how to trade, this is one of the things you learn on your own. No system/trading method/software available commercially will make you any money out of the box, including this one you talk about. The business of trading is a marathon and not a sprint. Whatever you do to make money during a day, imagine doing that same thing every single day of every year and think for yourself if that is something you can do consistently without getting stressed out. Point being that trading is the hardest business to succeed at for retail folks and day-trading is 1000 times harder. Lastly, you asked for advice and this advice to you is based upon all that I have personally gone through. Here's the kicker, I got lots of the same advice some 6 years ago and guess what - I ignored it and there is a 99% probability that you will too.
ETS was one of the many, many systems I threw my money away at in the beginning. The whole "let me see if I can just buy something that will make me money" approach is flawed. Most such systems/methods are junk. There are some that have credibility but what works for someone else, very likely will not work for you the same way. This is a highly personalized business. You will have to carve out your own niche.
Define viable. In the meantime, lets say you did go ahead with this. Lets say, 3 out of 5 days you made $100 each day and the rest of the 2 days you lost $100 total. So you make $200 per week. How long do you do this before you know for sure this is something you can consistently do? What then? add more size or add another method or both? How much stress does that add? I hope you get the picture. Thing is, no one can answer this question for you. Its just too early.
Welcome to the forum! I definitely think day trading is the hardest job in the world. I agree with all of the above statements! Take your time. Track your emotions. Always try to keep them level. Too elated = Greed and opposite for when you are losing. Make rules for everything you do and why. I personally think risking 1 to make 2 is not a good strategy in the long run. I prefer at least risking to make 3 on my scalps.
I also think scalping the open is an amateur game. Too many fake outs. It's a gamble if you ask me but I wish you the best of luck!