High Volatility and Long Liquidations

[brownsfan019]

That open interest you see is the big boys. Most retail accounts couldn't hold overnight if they wanted!

[notouch]

You're probably right. Most retail traders like to use heavy leverage and can't keep their eyes off the screen when they have a position open. Their tight stops and margin calls provide intraday liquidity for the big boys who hold positions for longer. Of course there are many scalpers and intraday traders who succeed (such as yourself) but there are even more who fail. Personally I find I can make more money using smaller contracts and aiming for bigger moves.

[MrPaul]

	Quote:	brownsfan019
	I feel the exact opposite James. This has been great. Getting 5+ pts on an ES trade in minutes is killer. I know it will stop, but hopefully not soon!!! Kill or be killed is appropriate for the current daytrading environment.

Brownsfan,

I agree! I was nabbing 4-5 point trades all day on the ER2 and was only aiming to maybe get 2!

This environment is like manna from heaven for me lol

[notouch]

I was tempted to trade YM today. I was looking at it on a 5 minute chart with two EMAs thinking "there's a short, there's another one, there goes another one". I probably could have made as much profit in one day as I made in a month by holding a long position (which I liquidated earlier this week). A couple of years ago I would have been distraught at having missed "the Big Move" but now I'm pleased with myself for being disciplined enough not to care. The key thing is to find yourself a market and a strategy and stick to it, not to flounder from one market and strategy to the next as the market conditions change.

[Dogpile]

<<A couple of years ago I would have been distraught at having missed "the Big Move" but now I'm pleased with myself for being disciplined enough not to care. >>

I am with you. I hope it moves big every day and I miss most of it. Just give me a few good set-ups a day -- I really couldn't care less what the close-to-close pt/% move is...

[Soultrader]

	Quote:	MrPaul
	Brownsfan, I agree! I was nabbing 4-5 point trades all day on the ER2 and was only aiming to maybe get 2! This environment is like manna from heaven for me lol

	Quote:	brownsfan019
	I feel the exact opposite James. This has been great. Getting 5+ pts on an ES trade in minutes is killer. I know it will stop, but hopefully not soon!!! Kill or be killed is appropriate for the current daytrading environment.

For the experienced traders this is heaven. I agree absolutely. Especially with this wild swings.... wow! But for those who trade with small accounts and lacking the years in experience, these emotional markets can be difficult. You need lightening speed execution and the ability to act.

Its been pretty wild here in Tokyo too... but since there is no overnight trading hours the gaps are RIDICULOUS!

[MrPaul]

	Quote:	Soultrader
	For the experienced traders this is heaven. I agree absolutely. Especially with this wild swings.... wow! But for those who trade with small accounts and lacking the years in experience, these emotional markets can be difficult. You need lightening speed execution and the ability to act. Its been pretty wild here in Tokyo too... but since there is no overnight trading hours the gaps are RIDICULOUS!

Soul,

Funny you mention that. I was talking to another trader about how earlier in my career I would have had no idea how to properly trade these volatile markets!

[Soultrader]

	Quote:	MrPaul
	Soul, Funny you mention that. I was talking to another trader about how earlier in my career I would have had no idea how to properly trade these volatile markets!

Same here Paul. We all learn from our mistakes. I feel like a complete idiot when I first started trading. And i was so prepared to make a killing back then. Ha!

[notouch]

I tripled and blew my first account within a month. :cry::help::support: :lol::baffled::piss ed:

It was a spread betting account where you could trade as large a position as you like as long as your maximum loss on any one trade didn't exceed your declared assets. I was trading £100 a point on GBP/USD! I thought I'd be a millionaire within a month but it turned out to be the best (and most expensive) lesson I ever learned.

[MrPaul]

	Quote:	notouch
	I tripled and blew my first account within a month.....

Really??

I did the same exact thing. Except for the tripling part :p