Tuesday, September 04, 2007

Sep 4 $136 on 65c




Made a bad trade on DAX and had to scalp my way back to a positive P/L trading ER2. The reason I took a large loss on the DAX is because I don't like using stops on the DAX because of the lack of liquidity and the high chance of getting a bad fill and watching the position reverse my direction. Overall trading the DAX on a low volume day like today was a bad idea and I think I should just stick to ER2, YM and ES because I can use more reasonable stops when compared to the DAX.

P/L= $136 on 65c (avg. 3 tick profit on ER2 and a big 2 contract loser on the DAX)

The saying goes- NEVER SHORT A DULL MARKET

6 comments:

Loren on 5:45 PM said...

I have a stupid question

what is a "tick"

i've googled it many times but have not found a good explanation

High Probability Trader on 10:19 PM said...

Good question, a tick is an insect that sucks the blood out of you,,,j/k
A tick is just the smallest price movement can make that you are trading. For stock a tick would be 0.01, for ES 1 tick is 0.25pts, for ER2 1 tick is 0.10pt.

I may trade 100 contracts a day and only make $100, and you ask how is this possible? Well I normally trade 1 contract positions, 1pt would be $100, so why not just trade 10 contracts and go for 1pt to make $1,000? It's easier said than done. For example today I lost about 20pts on DAX on 2 contracts in about 10min for a $1,400 loss. The rest of the day I traded 1 lots on ER2(ER2 has less leverage than DAX) and I traded 63 contracts total and made around $1,500, with the max size held about 9 contracts for a few minutes during a breakout trade. To be consistently profitable you have to trade the correct position size for your account.

Loren on 7:34 PM said...

Thanks for your answer

That actually clears up a lot of questions.

Sorry about doubled commenting. I didn't realize it was waiting for moderation so i posted the comment again

thanks again

High Probability Trader on 9:32 PM said...

your welcome, glad I could help.

Anonymous said...

addressed to "high probability trader." i trade for a living and have lived off my trading results for plus 3-4 yrs. my average is approximately 2 fold every 9 to 10 months. if you need my trading sevice to manage your account please feel free to contact me via skype name johnaaa1

Anonymous said...

this is skypee johnaaa1 that sent you an earlier message about managing your account.
i am giving you my email address to and for another soucre of contact:
johnathanorlyaaa@ameritech.net

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