[waveslider]

If you are trading more than one contract, Brown, how do you decide when it is time to scale up to the next level? Do you use a formula?

[brownsfan019]

Originally Posted by waveslider »

If you are trading more than one contract, Brown, how do you decide when it is time to scale up to the next level? Do you use a formula?

The 'formula' I use is rather simple - trade 1 contract per $x,xxx in account. That's it. I know there's many fancy formulas out there, but based on my recent trading activity I will decide how many contracts to trade. More of a - strike while the iron is hot mentality.

I think the fixed number is easiest. As you make money, you trade more. If you are losing, the last thing you want to do is add more contracts. I would suggest that you trade one ES contract for every $2500-$10,000 in your account if daytrading. I give that range b/c like I said - if you're new and struggling, one contract is plenty. If you are cranking, then add more. That also gives you a goal to shoot for. If you know that you will add when you make $5000, then you need to figure out how can you make $5000 and then track that progress.

[gilgelad]

Originally Posted by brownsfan019 »

Reav - that 5% interest you are talking about is ANNUALLY. I doubt there's many brokers paying 5% monthly. So, if you risk 5% per month and let's say lose in 1 month, the ANNUAL interest will cover some of it. Keep in mind that since that 5% is paid annually, it is paid on the revolving balance - if the balance goes down, so does your interest.

As a side note, very few futures brokers pay you interest on money parked with them.

First of all you have to entrust people (if you are going to give money to other people), but I am sure that MM is a very important in trading... As for me, so I trade using 10% of my deposit... but if you are using a big part of your deposit, so it is very easy to lose everything...
more that 10% can use only professional traders who can be sure in their risk.

And for all beginners, MM is a VERY IMPORTANT part of the trading...

[TacTrader]

My rule for trading the YM is to trade one contract for every 5k in account. This is daytrading only, no overnight positions. Maybe a little too conservative????, but that is what I have set up. Being a smaller trader I can't imagine one contract every $2500, but maybe as I get more proficient and the account grows I will be inclined to ramp it up a bit. Right now I am just trying to build up, pay off debt and park 2-3 years worth of living money so I can go full time...

Stephen

[Razzaq]

hi everyone,

Great Soultrader... i will must say it's a awesome post of yours'

thanks for the great technical information...

take care



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