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Trading futures with $5000


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Trading futures with $5000

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  #41 (permalink)
 
MNSTrading's Avatar
 MNSTrading 
Grand Rapids, Michigan
 
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I used to see this ad on Facebook for a guy who would take 5k each year and run it up to 500k or a million or whatever.
I don't know if it was a real claim, but the point stands. If I had 5k, i would trade the micros, particularly M6E, 2 contracts until I either lost the 5k (should take a good long time) or ran it up to 10k then start trading 3 contracts, etc.

The question is, are you consistently profitable? if yes 5k is plenty. If no, a million is not enough.

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  #42 (permalink)
 
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 FABRICATORX 
San Tan Valley, AZ/USA
 
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I agree - 6E, or NQ/YM.

Anything overnight? At least 3-5x that - say $25k per contract.

Trading 2-3 contracts is ideal - let the trades pay for themselves then it's free money.

-Jimmy
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  #43 (permalink)
 
Blash's Avatar
 Blash 
Chicago, IL
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DrewDown View Post
Micro forex. 10c USD per pip/micro lot. Risk 40 pips, you're just risking the price of a latte, learn to position yourself and not cut the trade without confirmation or being stopped out and you'll make enough to buy a few lattes. Makes it easy to think clearly and just trade, is what I'm getting at. You can get familiar with leverage, scaling in and out of positions, and not really thinking about the money. It's about risk and reward, not money, and even less about a need to make money.

I think this is a very good idea for folks with smaller accounts.

Ron

...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
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  #44 (permalink)
smileypete
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Dijon View Post
It is no problem to start with$5k, just add $5k more when it is gone, then repeat.

Good point. More about burn rate x time to profitability?

Is blowing 5 x 5k accounts a more useful learning experience than blowing a single 25k account?

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  #45 (permalink)
 
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 tturner86 
Portland, Oregon
 
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smileypete View Post
Good point. More about burn rate x time to profitability?

Is blowing 5 x 5k accounts a more useful learning experience than blowing a single 25k account?

The money isn't the issue. The emotional and mental capital is harder to gain, keep, and replenish once gone.

If you blow out an account 5 times, do you still think you would have the mental ability to be able to continue trading?

Or if you lost $25K in one month?

That can be very damaging emotionally and make it very hard to actually start trading well. Most new traders do not take into account the emotional capital that is required to trade. You have to have a really slow burn on that, because once it is gone it is the hardest to recover.

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  #46 (permalink)
 
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 xplorer 
London UK
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tturner86 View Post
The money isn't the issue. The emotional and mental capital is harder to gain, keep, and replenish once gone.

If you blow out an account 5 times, do you still think you would have the mental ability to be able to continue trading?

Or if you lost $25K in one month?

That can be very damaging emotionally and make it very hard to actually start trading well. Most new traders do not take into account the emotional capital that is required to trade. You have to have a really slow burn on that, because once it is gone it is the hardest to recover.

Everyone's different but I think it'd be far more devastating to lose a $25K account in one go or month than to lose it in 5 instalments.

At least in the latter scenario you would need to sit long and hard and reflect on how/why you blew it, every time.

Whereas in the former scenario you could just be reckless and double-down until.... sudden death.

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  #47 (permalink)
 
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 Blash 
Chicago, IL
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tturner86 View Post
The money isn't the issue. The emotional and mental capital is harder to gain, keep, and replenish once gone.

If you blow out an account 5 times, do you still think you would have the mental ability to be able to continue trading?

Or if you lost $25K in one month?

That can be very damaging emotionally and make it very hard to actually start trading well. Most new traders do not take into account the emotional capital that is required to trade. You have to have a really slow burn on that, because once it is gone it is the hardest to recover.


I feel this post is extremely insightful and well said. I can tell by the fewness of words and abundance of sense, wisdom and perception Terry has an ocean of emotional capital. Thank you @tturner86

Ron

...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
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  #48 (permalink)
smileypete
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tturner86 View Post
That can be very damaging emotionally and make it very hard to actually start trading well. Most new traders do not take into account the emotional capital that is required to trade. You have to have a really slow burn on that, because once it is gone it is the hardest to recover.

Wise words indeed, a small controlled loss can help make us stronger in the long run, but a catastrophic loss can finish us, brings to mind the film 'Floored' (one of my favourites ).

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  #49 (permalink)
Ctlbyr102
Atlanta GA
 
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trading654 View Post
Is this really something one should be doing? The contracts are so big that I think this is like a surefire way to getting wiped out quickly. A part of me feels like one has to have at least $100k to be able to trade futures in an intelligent way. What do you think?

Not every trader needs to sling the ES, there are commodity spreads you can trade with a 5K account and with realistic expectations learn and continue to grow your acct from outside and within. Just dont think that with 5K you can open up a amp acct and with 500 intraday margin sling 8-10 ES that will eat you within 2 weeks... Trade what most of these "traders" on here would consider obscure; calendar spreads on meats, grains etc learn how they trade and go from there

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  #50 (permalink)
 bjarne 
Breda NL
 
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I really to trade in QM as a new trader in oil.
Good luck.

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