[brownsfan019]

For any newbies to futures - tread carefully these next few days. With so much going on, we are seeing the markets jump levels at a time. We saw this last year as well and while it was fun, you also have to know what you are doing. Be prepared for markets to blow past levels like they did not exist.

[Soultrader]

Good point brownsfan. Be prepared for the unexpected. During the credit crisis, I saw many senior traders sweating their balls off as they could not believe prices could drop so low. The best injstituional traders I met always hedged their positions during these times in case something unexpected and unfavorable happens.

[brownsfan019]

I will offer a few suggestions when trading in markets that are more volatile - either decide to go for the bigger moves (b/c they will be there) or take a fixed profit and be happy. It's VERY easy right now to grab 2-3 on the ES all day. That works better for me, esp. on counter-trend trades.

Here's a snapshot of my blotter from a few trades here this morning:




What's the catch? A number of these trades moved for much more than the profit I took. A couple others however just got my profit and then retraced. For me, esp. in volatile times, taking a fixed profit and so far having a 100% win percentage is a good feeling and easy for me to do. So far today a total of 12 trades and ZERO losers.

Keep in mind that rarely ever happens for me, esp. using counter-trend techniques as one of my strategies.

And having trades hit my targets in under 1 minute is just incredible. Again, you have to be ready for those moves - levels were being passed on the ES easily.

Also, take a look at the very, very light DOM:




I took that snapshot at 12:13pm EST.
While that is lunch time zones, having a dom that light is just not usually seen. It appears a lot was made/lost since 9:30am and there's a few still left to fight the fight.

I personally seem to have bigger days when the DOM appears lighter. Maybe with less bot's out there it's easier for my profits to be taken out. Who knows.

[james_gsx]

I decided to trade today after it slowed down a little bit (I didn't trade the first hour even though there was more money to be made it was too volatile). It's actually one of my best days yet, if not my best. Although I'm being very conservative and holding onto my profits and exiting trades quickly, even though I maybe leaving money on the table I still feel good keeping my profits and waiting for the next setup.

[mister ed]

Great thread thanks to all the contributors.

For me, I have limited experience in the index futures, so I decided against trading it today. Hard decision, felt like a coward - and hard to admit it too - but I did not want to incur the increased risk of gap moves against me today. Looking forward, as my experience in index futures increases I will be better able to take advantage of a day such as this.

[james_gsx]

Well, all my trades ended up blowing up in my face. I will admit, I got cocky and started to think about how much money I was going to make. I'm glad it happened because I was able to identify a few key flaws in my trading.

1 - I need better defined setups
2 - I need to work on my discipline.

[torero]

"Money is the root of all evil" this statement is never truer in trading. Focusing on finding and waiting for the next setup is the most boring thing in trading but it's what helps you kept your money won and help move the profit line higher.

[mister ed]

This should help (to be careful the next few days)

1:20 AM General
Due to current market volatility the day-trade margin has temporarily been raised to 50% of the overnight exchange requirement.