Brief detour, it is known that objects do not have a physical property of “color”– that color does not exist in the physical external world. Yes, there are light waves which produce the sensation of color according to their frequency and act predictably according to known physical laws. But, the feeling thereof is created by […]
Continue readingSystem Trading , Trader's Mindset
In my experience trading futures, I have found that most damaging losses are caused by taking consecutive losing trades, i.e. runs of losing trades or correlated loses. In this post, I share 2 simple methods and 1 advanced method to avoid consecutive losses which can be applied to your trading systems and discretionary trading. The […]
Continue readingA good rule of thumb is that a reasonable risk per day for a day trader is from 2% to 5%. A moderate level of risk is around 3% of your capital. The new CME e-micros makes it possible to get started with trivial amounts of risk (from $500 to $1000 or even less). However, […]
Continue readingI review 2 approaches to trading below. Technique: Low frequency, Multi-market In this approach, the trader scans many markets for the best trades, ranks the best trades, and only takes the best trades in the best markets. This approach is often adopted by professional equity traders. For example, this last week I found that Natty/Natural […]
Continue readingRecently, I shared that taking serially correlated losses was one of the primary reasons future traders end up losing their account. In this post, I will explore why that happens. So, the reason that most traders take serially correlated losses is that they are trying to get into a trade with a just a few […]
Continue readingI have entered the CME “Trade Against A Pro” paper trading competition. Of course, everyone would like to win, and most people are going to complain the competition is not realistic– and it’s not. However, there is a real value to the competition, and I recommend everyone to enter if you’re serious about trading futures– […]
Continue readingIf you are reading trading books, spending excessive time reading trading forums, not making progress, or losing money in live markets then I would strongly suggest stop with that and instead hit the replay. You can use the replay in the following ways: Use the replay to develop your market cognition without risking real money […]
Continue readingOne of the best aspects of futures is the high leverage which allows one to magnify their gains on even a small edge. But, that’s the ugly side too. Scalping the ES with a 5 lot: you can be up $500 in a matter of minutes. Hit a few good trades and you can be […]
Continue readingA relevant question to ask is what will be the implications of commission free stock trading? First, I think it makes the futures industry look more and more archaic. The futures brokerage industry feels antiquated with more fees, commissions, etc. And, while the CME has made some favorable changes for the retail trader like the […]
Continue readingI have essentially identified 3 paths to edge among 7 figure traders from information readily available on the web and my own insights into trading edge: 1. Fully systematic and quantitative decision making. No discretionary decision making involved. While, I do not know any 7 figure traders with verified records that are fully systematic, it […]
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