blackgrey45 

The trader went on the say if you can eliminate the big loss you have a much higher chance of being profitable.

How do you plan to do that?

deaddog 

How do you plan to do that?

Use a predetermined stop loss. And don't hold onto a loss in the hope that it may turn back into a winning trade.

blackgrey45 

Use a predetermined stop loss. And don't hold onto a loss in the hope that it may turn back into a winning trade.

Gonna be a hard stop or a mental stop?

deaddog 

Gonna be a hard stop or a mental stop?

I want to say mental stop, but I know it is smarter to use a hard stop. Probably 4 tick hard stop.

blackgrey45 

Took a break from trading, since about August of 2024. Now thinking about starting up again. I am planning on trading MES and MCL. One contract per trade. I thought about why I want to trade. I'm an independent contractor in another line of work that pays the bills and I am able to work whenever I want, so being available when the markets are open is not a problem. I thought, I am still very intrigued by trading even though I have never been profitable. It is very fascinating to me to watch the liquidity move up and down the DOM. The futures market is something I just can not turn away from. I have been trading off and on for 17 years now. However, I realize I must change something and do something different if this go around will be any different than the results in the past. I was watching an interview with a trader a couple of weeks ago. He said there are 5 possible outcomes in a trade: big loss, small loss, breakeven, small win, and big win. The trader went on the say if you can eliminate the big loss you have a much higher chance of being profitable. My plan is to possibly start trading in March and I will see how my finances look then.

That analysis is generally true (get rid of big losses, become more profitable overall), but it presupposes that the one big loss is not replaced by 10 small losses.

So the solution is more than just eliminating the big losses...

blackgrey45 

I thought about why I want to trade.

Quoting 

The futures market is something I just can not turn away from.

What is it about futures that makes it a better trading instrument than equities or ETFs?
You increase your edge if you understand what you are trading.

Quoting 

I have been trading off and on for 17 years now. However, I realize I must change something and do something different if this go around will be any different than the results in the past.

Any idea what you will do different this time?

Quoting 

My plan is to possibly start trading in March and I will see how my finances look then.

I'd take the time to review my past trading to see where my decisions caused me to lose money. Then figure out a way to change my behavior.
I wouldn't start until I had compared my trading plan to my former plan and noted where the differences were.

deaddog 

What is it about futures that makes it a better trading instrument than equities or ETFs? You increase your edge if you understand what you are trading. Any idea what you will do different this time? I'd take the time to review my past trading to see where my decisions caused me to lose money. Then figure out a way to change my behavior. I wouldn't start until I had compared my trading plan to my former plan and noted where the differences were.

I really like seeing the depth of market. I know there is the level II for stocks but the DOM for futures is really intriguing to me. I could really watch the dom all day long.

I start with a good plan always with small stop losses and plans to hold onto my winning trades. This plan has always morphed into the opposite, taking profits quick and holding losses until they become large losses. I will try to follow my plan if I do trade in the future.

I thought a little more about my preference of trading futures over stocks. My goal is to have income to pay for my life and owning 100 shares of Alphabet stock doesn't do much for me just sitting in a brokerage account. I want assets I can spend. I suppose the argument can be made that I could acquire shares for the dividend. However, at $180/share for Alphebet it would take me 36 hours (yes I only make $5/hr) of work to buy one share and receive the $0.20 every 3 months. So that is not something I am interested in. I will continue thinking about my choices and jot them down in this journal.

blackgrey45 

(yes I only make $5/hr)

What is it that you do that only pays 5 bucks an hour?

Maryland employers may not pay you under $15.00 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law.

deaddog 

What is it that you do that only pays 5 bucks an hour? Maryland employers may not pay you under $15.00 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law.

I'm a webcam model. I'm an independent contractor and my pay consists entirely of tips, which averages about $5 per hour. I realize I could make $15 per hour doing anything else in Maryland, but I like what I do and would rather not do anything else.