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I am a new guy around here but I have been trading for about 55 years and I have real college degrees in this crap. For full disclosure, other than cash, my trading accounts/portfolios are about 30% futures, 60% options, and the rest stocks (the result of naked puts and for covered calls). I was taught to trade onezies (in anything) until I understood the market (as far as I or any human can) and was making a decent profit. If I am looking at defined risk, I typically spend 1-3% of my overall buying power per trade. If it is undefined risk, up to 6% per trade. I am a huge believer in probabilities, and the central limit theorem. The more times I enter a trade with well designed mechanics, the more the results will, over time, take on a normal distribution. For futures, I traded futures options until I had enough of a handle on it to take the plunge. What I am saying is that onezies have their place, like training wheels. But I never go over 5-6% of my portfolio buying power for any trade. BUT, find a broker that offers portfolio margin.
Broker: Broker: Trade Future 4 Less. Data Feed/Order routing: CQG
Trading: DAX; ES; Bund Futures
Posts: 77 since Oct 2018
Thanks Given: 49
Thanks Received: 57
This is correct - I would even say risking 2% is at high end 1% risk per trade is much better/safer - If you trading style requires more than one contract MES is an good - otherwise the commission of 1 ES compared to 2 MES should be what decides which one you trade. - If you are new and comming from papertrading and want to start risking real money MES is also good just reading one contract since this keeps your risk at the halfe of one ES contract.
Starting with the percentage of capital at risk per trade is a good paradigm.
I would say 2% is still too high. 1% is more conservative.
1% means that it will take you at least 100 trades to lose your capital.
You will learn a lot about yourself in 100 trades...
I'm glad you mentioned this! I thought to be honest the "free" version didn't allow you to order live at all, I thought it was just like an extended demo mode. My targets and stops are father out so that could be an option, but I don't imagine me jumping ship from Infinity Futures any time soon despite the high fees. I think I will stick with them until I am comfortably up to 3 contracts.
you've just got a ton of advice from a ton of different people, before you do anything please evaluate what your doing and do whats best for you. Whats best for me might not work for you.. take your time there is no rush.
-P
"Truth is not what you want it to be; it is what it is, and you must bend to its power or live a lie"-Miyamoto Musashi
I really appreciate all of the feedback. One thing I have observed in this journey is this...
I work in healthcare (CT Technologist) and when I was a student, each tech I worked with had a different way of doing things. The results were the same, just many different ways of approaching the varied patients and studies. As a student, you have to learn each of the techs nuances but once I got hired I had to forge my own path to find what worked for me.
Trading has seems much like this. I've tried to take a little knowledge from here and there from technical analysis to price action, to order execution (and now scaling into multiple contracts) and find what works best for me.
One thing I have decided is sticking with micro for awhile, at least until I can feel very comfortable with 3 contracts. Once I reach that goal, and can fund 10k+ then I'll look at starting full es with one or two contracts.
Great advice. Even if every single thing that was said so far worked very well for the person who said it, it might not work for you at all.
But some of it will. I'm glad you've gotten so many replies. Now you have more to work with. Good luck with all this. This stuff can be fun and rewarding too.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
There is the free demo version that is not connected with any account. You are correct that it does not allow live trading. This "free" version does have Trader + features.
There is also a way to open a live account with ninjatrader that does not require you to buy or lease Ninjatrader. However, you will only be allowed to trade live on the "free" version, which does not have Trader + features.
Always rememebr that everyone has to develop their own way of doing this stuff. Just like I never listen to anyone telling me what I should buy/sell, I developed my own style over many, many years. My first trade was a 14. I researched, I did homework and I fought to make the trade even though parents, their broker, etc said I was crazy. The stock gained over 600% over the next few years and I was put in charge of my parents investing. The only thing that matters to me is that you are making money and are comfortable doing what you are doing. Yes, I will go up to 6% of buying power in undefined risk trades. That doesn't mean you should. Maybe 2% is better for you. Maybe you are only comfortable with defined risk trades. Only you know that. And what we all do should only say that there is more than one way to skin the cat.