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No - not a typo. That's the whole point - you can actually scale down where with ES you can't (or couldn't, until the micros). And a stock brokerage house wouldn't let you take the same level of leverage even if you wanted to.
Also - presumably you could trade low beta stocks so it could be even less risky than 1 share of SPY.
Can you help answer these questions from other members on NexusFi?
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
Posts: 2,311 since Nov 2011
Thanks Given: 7,341
Thanks Received: 4,518
Just take the phone away. Period. He gets it back once he earns it back. You decide what earning it back looks like.
You and your son are not equal. You can look at charts or a phone in a responsible way. You have a VERY different brain than a 14-year-old. Kids are way too impressionable and need guidance, limits and boundaries. They feel safe if these are firmly in place. They know someone is in charge. But they are going to test these boundaries BIG TIME to see if they are real. To see if their safety is an illusion or not.
PM me if you want to discuss this more. I don't want to hijack this thread but feel it was important I say something.
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)
Also remember, back when I started..you had to at least have $25,000.00 in an account to trade stocks. A lot of people found they would rather open a Forex account for a few hundred dollars when they were beginners. That's the big reason most people didn't start with stocks.
Please adjust your post to be more helpful and less critical. We are about being helpful not simply judging. Share your experience in a positive way.
Just explain in a helpful and useful way why you believe trading less than 100 shares at a time doesn't make sense or is unrealistic or whatever your position is exactly.
I agree - no one is going to trade with 1 share of SPY. But my point is that trading any money with no edge is dumb - even one share of SPY.
But - then again maybe that gets to the point of this thread. Why do people trade? And why do they gamble? Are they trying to make money or are they using it as a proxy to feel significant?
You can't feel very significant if you are only making only a few bucks on SPY.
Bruce Kovner drove a cab while taking out the $3000 he had on his credit card to deposit into a trading account.
Did he gamble his life?
I think he knew what he is doing. See his net worth today.
In my opinion - and after so many years of trading and dealing with many traders - If you know your statistical outcome and the probability is positive, its a start of a businesses, not gambling/HOPE it will work out for you.
You make it sound like he knew exactly what he was doing and no luck or hope was involved. You are completely disregarding the random/luck variable. Out of the millions of people who have no doubt tried the exact same thing but failed, odds are that someone in that number will have the personal characteristics that are required to trade succesfully. It was still a gamble for him. Statistics and probabilities dont tell you what will happen next even if you have a 60% chance of an event occuring, you still only have 50/50 odds going forward.
In my opinion you are totally wrong in your above conclusion.
If you read Kovner bio you may find out he was not LUCKY.
The millions of wanna be traders you talk about did not put in what needed/they did but could not find an edge/were unable to control emotions required to be successful at this line of business.
If your statistics and probability shows + over long term you will be profitable 100% over time (please read a book or two about gaming theory, study statistics/probability, Monte Carlo Method of computing and why casinos are in business in the first place)
Also suggest watching Mark Douglas videos explaining the above and how to do it the right way in layman language.
Funny you should mention that. I am currently studying BSc (honours) economics and mathematical sciences and two modules away from attempting this years final stat exam.
This is just completely wrong. Not going to argue with you though its for you to learn. I am surprised you dont have a disclaimer warning your clients that past results dont gaurantee future results (or something to that effect). Instead you are giving out these 100% gaurantees. You should be careful with that.