Again, Dave pushed me to do something about my trading and market. Here is another email from him. I am sharing this, for you to think.
Let me ask you to think about something. Suppose you were able to take 1 point out of the E-mini every day, day in and day out. You just waited for the market to give you the easiest 1point move of the day and you took it and were done.Now let’s say you start by trading only 1 contract, so you’re pulling in $50/day which you split 50/50. $25 goes back into your account and the other $25 pays your commissions, taxes and buys you gazinga pins. How long before you have enough in your account to trade two contracts? How long to three? How long before you are trading four contracts? Now you are at $200/day or $50k a year. Take it out as far as you want…how long until you have a $1,000,000 account? (This is best done in a spreadsheet!)
Now, look at any day’s S&P chart, at random. How difficult do you think it might be to find a way to pick the juiciest 1 point out of the market that day?
Put tradestation on 5-min bars and look at a day. How many opportunities are there? (I count several already this morning)
Now don’t get carried away and start trading without a plan..going for that juicy 1 point – there will be plenty of time for that, but not now! You still don’t have a plan, you’ll start losing money hand-over-fist. I just want you to try on a different way of thinking about the market.
1 ES point a day. sounds easy? Another key point here is consistency. For example, I trade 1 contract per 10K account. Start with 1 contract, I will need another 400 trading days to achieve another 10K and start trading 2 contracts. I think, it is interesting to challenge myself to achieve this 1 point a day CONSISTENTLY for 400 trading days. But before that, I need to start completing my trading plan.