8 replies to this topic

[CLK]

I think we have to start considering that wave one is done here, IWM and Transports never confirmed

this rally. Wave 2 could be 300 points below here.

[redfoliage2]

Very likely this is some kind of a top.  It could be just a ST top, but also a possible IT top.  Now it's time to sell into bounces..............

Edited by redfoliage2, 20 March 2019 - 02:47 PM.

[CLK]

This looks like a volatile top now, unless this is the new normal, problem is we are not making any progress at breakouts at all.

So volatility can go up with price but price isn't doing anything yet. This is a sick market. Not going to be easy for position traders.

[CLK]

Looks bullish now, bearish under 2780.  Higher volatility in an uptrend trying to shake everybody out.

 

 

https://invst.ly/acxe0

[CLK]

Position trading long is getting expensive, I don't like the way this market is trading. I expected straight up moves

past 2800.

 

If you don't take any profits at highs, you absolutely must countertrend trade a short every time to pay for the decay.

[CLK]

Looking forward to the Micro Emini's in May. Tried another 2.5 point stop last night on the ES and of course walked away with my 6th loss, yeah I could have placed the 20 point stop I wanted to be safe but I was not prepared to be wrong and lose $1000. All I really need is about $200 per day in income from futures to make a living, I can't do that safely with ES. The thousands per day will come in time, but have to start  somewhere reasonable. My IWM call is up some to make up for the ES loss, so why not just trade the options ? Well, great entry points often only show up in Globex and as I have already said, options are erratic with theta and VIX. I can generate futures trades every day, there isn't always a profitable option trade there as you need about 10-20 points to be worth it. With options I would rather position trade with months of time and focus on futures for weekly income. Futures don't have theta to deal with, there is no rush to hit the target, just place the stop and wait, big difference.

Edited by CLK, 26 March 2019 - 09:39 AM.

[tradesurfer]

Hey CLK I have never traded futures.  Is it worth it ?  What are the requirements to get into futures.  And /or the advantages

Edited by tradesurfer, 27 March 2019 - 11:59 AM.

[hhh]

Requirements: money, ability to stop out quickly without hesitating if you're wrong. 

Advantages: zero decay, high leverage, scalability, liquidity.

[CLK]

Hey CLK I have never traded futures.  Is it worth it ?  What are the requirements to get into futures.  And /or the advantages

 

 

You have to pass the means test to be approved, i.e., income, liquid net worth, etc. Lot's of advantage over options, you have unlimited risk though, so you have to size your position and use stops to the amount of capital in your account, don't count on being stopped out in a 1987 event, although rare and not likely you still have to be aware it could happen, if you lose more than what is in your account they will come after you and make you pay it back. This is the worst it could get and not likely, as circuit breakers are there now. 

 

The leverage and lack of decay make them superior to options, just trade small until your account is built up. Even in the event of a crash, the micro's would not be a concern as the leverage is very small. Also small stops look good in hindsight but often don't work in real time, you can move the stop up after you are ahead on the trade, but retraces can also take you back out. Less taxes to pay on futures than cash.

Edited by CLK, 28 March 2019 - 08:42 AM.