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Scalp and non scalp trading are 2 different ball games. The same rules don't apply to both. Most higher time frame traders are trading S/R levels, trying to capitalize on market participant behavior, attempting to anticipate where other market participants will react. If that is your mindset, you are going to fail hard at scalping, because these market phenomena are meaningless in smaller time frames.
Scalpers generally are pattern traders trading the observed statistical percentages of specific market technical patterns. These patterns generally occur due to the natural side effects of the normal technical day to day workings of the markets, and such they cannot be traded in the same way as S/R levels anticipation, etc. If this is your mindset, you may succeed at higher time frame trading after you've gone through the pattern identification, and statistical analysis prep work for the higher time frame data. But there various other reasons you may still fail.
Higher time frame trading requires and understanding of the markets, the behavior of market participants, and flexible and adjustable execution. Scalping requires an eye for pattern recognition, statistical data analysis, and strict methodical execution. Applying the wrong approach to either of these different styles will most often mean categorical failure. Understand who you are, and what approach will fit your personality best, then apply the appropriate methodology.
You will be a god among men, if you can combine the two.
Trade proactively rather then reactively, so that you become a stalker. Determine in advance exactly what the market has to do for you to enter or act on a trade. Get to the point where you know ahead of time, several bars in advance, several minutes in advance where you will, enter, exit, or adjust. If the next bar does this, I will enter here, if price comes down here and does this, I will exit there, if price does this, I will do that...
Platform: "I trade, therefore, I AM!"; Theme Song: "Atomic Dog!"
Trading: EMD, 6J, ZB
Posts: 796 since Oct 2009
are you consistently profitable?
what classes or subject matter studied in collegiate course work, do you attribute as having made a substantial contribution to our trading, whether good or bad?
do you engage in vigorous inter-rogatories?, know the significance they have towards reaching higher trading levels?
these questions (please answer them, or pm me) are those.
that's how you succeed!
you take stock, inventory, reassess and find solutions beyond what you have identified as faults (if you have identified any).
seek professional help!
actually as funny as that seems, its a compliment, and that's what you're doing by participating on these threads...
seeking professional help
Who determined this? How long do/did they trade on sim and what is CP? 1 month 2 3 4? Strictly 3 trades a day. Win Lose or Scratch? What? Help me out here.. Who exactly started this up? Is this info for just newbie's who are not skilled enough to be trading IRM?
I will ask again. Who thought this up. If a trader wants to trade he is going to trade. Being under capitalized in the live market is a sentence for doom and a set up for faliure/blow out. However. Who set the magic number for a new or any trader for that matter to go in there live? What is it? 3k 5k 10k 100k?
The thing that gets traders in bigggggggg trouble is trading size on an account that is not capitalized for it. 10 cars on 20 large? Keep that up and you ARE doomed!
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
I thought this up. Your comments are aimless though.
I've been trading for a long time and have seen a lot of people fail. My intent in writing that was to help aim new(er) traders from ruin, including you (I read your journal). CP = consistently profitable and that would depend on what type of trader we're talking about of course. Example intra-day vs. swing trade. But for the intra-day trader being the majority here, I would think at least 60% profitable at a minimum.
As for trading with live cash and being well capitalized, a trader should be in the market that is best suited for their account size vs. what they can afford to risk (not make). If you have a small account of say $5,000, maybe trade the micro currencies to start out to get a feel for trading live. I would think $10,000 per full size contract is a good, safe way to start out. You aren't utilizing your firm's BS margin and allowing for plenty of room for mistakes without complete ruin.
But in all honesty, the questions you've asked are completely fair. Maybe it's just the way you've worded them that is such a turn off to respond. I take it you're new to trading and looking for some direction? If so, this site is a great resource.
Platform: "I trade, therefore, I AM!"; Theme Song: "Atomic Dog!"
Trading: EMD, 6J, ZB
Posts: 796 since Oct 2009
PB (Private Banker)
... I find the avatar refreshing, seeing Gordo Gecko in his younger years, just before he said: (what? - for the trivia experts?)
ok, answer: "I just wired $800,000, I made in Hong Kong Gold (last night), .... spread it around, and put some on those dog ---- stocks you mentioned...."
PB,
waiting until one has $10,000 margin per contract will keep exactly 99.8% of the traders on these threads out of the market forever. Evidently, you really were on a live desk, with live funds.
When I was same, I noticed better capitalized traders blow through their $25,000 (and higher) accounts faster than 2 months, diligently following the house's instructions (at that time it was Bright Brothers in Las Vegas home office)
there's more to this equation, and the biggest hurdle is "realization". I noticed that most traders or prospective traders, fantasized about being in some Hollywood glory role as a trader on a desk, profitable, arrogant and everything working for them. They thought, when they would drive to work in the morning, they would catch every green light, just as they arrived at the intersection. They remained in that delusional world long enough to waste every dime and become under-capitalized.
They just simply, dusted off their seats, and yelled: "NEXT", and in some cases, had to call the janitor over to clean up the mess and let the chair dry out until the next day, before yelling: "NEXT". So, that was the outcome.
The reason so many former stock traders, have migrated over to the Emini format are the more reasonable risk management features and rewards of Emini(s).
Just think, for $500 per contract, and $5,000, a maximum of 10 cars (not advised, just for sake of this discussion), this was a pretty powerful draw.
One quickly learns that sim trading is the best friend they could possibly have (not a dog, as Gordo would say), and if they implement this simple strategy of:
A) 3 cars on (of course, using a reasonably determined stoploss and never trading without a stoploss), peeling 1 off at a fixed profit interval; peeling 2nd off at a higher interval and letting remaining run to a higher interval that they:
B) usually were profitable by days end, and were able to manage the remaining 1 car, whenever it went against them and took back earlier earned profits
C) so, for an average $1,500 (3 cars) of a $2,500 or $5,000 account, one could participate, perhaps turn profitable, and in the least, manage their risk, especially when things went against them
with that discipline, when one turns over from simulated to live, one usually has success and is off to a reasonable start.
there will be reversals, but that's the basis and evolution taught by ohh so many vendors our here too
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Thanks! I'm a huge fan of that movie and it was my inspiration for getting into the biz and working on the Street.
Great trivia question, you should've at least let me give a crack at it before you answered, lol! I was actually thinking this: "Oh, jeez, I wish you could see this … the lights coming up. I've never seen a painting that captures the beauty of the ocean in a moment like this. I'm going to make you rich, Bud Fox, rich enough you can afford a girl like Darien. This is your wake up call, pal. Go to work." Lol!
I agree with what you said about using good money management such as having multiple targets. I'm a firm believer in your success rate greatly increases when trading with multiple contracts. I break my positions into 1/3's and it really allows for removing risk as the trade progresses while ensuring a profitable or BE trade depending on how you structure your targets.
Obviously my $10,000/contract is extremely conservative and really just aimed at complete new traders that have zero trading experience. If someone has a relatively high probability set up coupled with sound money management like we just mentioned, I'm sure someone could trade with far less capital. And you're right, sometimes having too big of an account creates a false sense of security. I've seen guys blow through 6 figures like nothing. It's usually the guys that don't use stops or add to their losers on a strong trending market.
I can say that going in the live market unprepared is a set up for failure for sure. I can be trasparent here I think and say that both times I went in there it was with 3 large. Under capitalized at best and not realistic at all in what I was trading in. That being CL and GC. But "no no I got this". And then there was a big ginormous red candle in GC that said guess what dude no you don't. BOOM just like that. It wasn't catastrophic but going down $700 on one candle was enough for moi. I was out. Again.
Don't get me wrong I wanted to trade live and know what it felt as far as the psychology of it. I knew full well that I could potentially lose money. Hell even all of it. So there I am after clicking the buy button on my very first trade. Like a dork newbie (no no I got this as it were) I play 5 cars on a 3k account.. NOT very smart. SO there I am with my right hand physically shaking and my heart feeling like it is going to come right out of my chest cavity. Yikes!! I made $900 and thought I was GG for god's sake. Holy cow how one can be rudddddely awaken on the very next trade(s)..
Now my risk mgt and MM are more in line with what I WILL be doing once I return to the live market. When that is is TBD. Gotta work now this season and do what I AM an expert at. LOL If you don't have the risk mgt and the MM down as I always say "Trade smart OR JUST DON"T TRADE"!!!
Now I just toil everyday to become more and more CP. Always learning my instrument more and more. I do think that you only have to trade 1-2 instruments at a mastery level to make a good living in the live market. I now am aiming to do just this. Hell I make a good living now and have 6 months a year off and all the freedom I want. BUT I LOVE MONEY!!!! LMAO
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Thanks for sharing that! Like I mentioned earlier, you really should trade a market that is suitable to your account size with regards to the amount of risk you can feasibly handle. Trading a market like Gold or Crude Oil requires a lot more risk to be taken because of the wild volatility that takes place. Your stops need to be a lot larger than say a lower vol market. Don't think about how much you can make, it's really about how much you can afford to lose. Once you hit buy or sell, that money may be gone or you may make money but the proper thing to do is focus on your risk and trading well. The moment you get caught up in how much money you made or are currently making on a trade is the moment when you need to stop and collect yourself. The same goes for losing. Focus on taking your set ups and trading well while keeping the emotional aspect out of the situation.
