How Much Money Do the Strong Hands Have?

I currently trade 1 E-mini S&P contract @ US$50/point. I have around US$4500 in my trading account and must maintain a $500 Day Trading margin. I rarely let my losses exceed $150 for a day. Usually I cut my losses at 0.75-1.25 points for a trade ($37.50- $62.50)

I'd like to get some idea of how I compare to the strong hands trading the E-mini. How much capital would the strong hands have available for a day trade? Does anyone have any idea? I often see trades of 800-1000 lots take place. Are these likely to be a single operator?

Any input welcome

New trader,

Unless I'm horribly mistaken, I think you're trading high stakes for your capital.

I'm sure that E-mini S&P traders will correct me if I'm wrong.

fibonelli said:

New trader,

Unless I'm horribly mistaken, I think you're trading high stakes for your capital.

I'm sure that E-mini S&P traders will correct me if I'm wrong.

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Risking $150 on a $4500 account is 3,33% maximum potential loss... not per trade but per day... that seems within limits to me, a lot of people risk 2-3% on any single trade.

firewalker99 said:

Risking $150 on a $4500 account is 3,33% maximum potential loss... not per trade but per day... that seems within limits to me, a lot of people risk 2-3% on any single trade.

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Yes, I just want to clarify that this is what is in my trading account, it is not my trading capital. I consider it my "learning" capital.

firewalker99 said:

Risking $150 on a $4500 account is 3,33% maximum potential loss... not per trade but per day... that seems within limits to me, a lot of people risk 2-3% on any single trade.

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Good going! I was never able to find a profitable e-mini day trading system with such a low $ loss per trade or per day. Watch out for those 30 consecutive losers though

Alex

You might find the audio interviews on this website informative.
They will give you an idea of the amount of money being moved about.

http://www.advancedtrading.com/goldbook2006/

As an example, a long short hedge fund with 10bn needing to hedge 10% of its portfolio
principal value in ES futures would need to buy/sell around 14000 contracts.

How Much Money Do the Strong Hands Have?

:idea: More than us ! :cheesy:

Enough to manipulate a market, as well as take a lot of pain if needs be because they usually trade long term from what I understand, although there are people who don't. Maybe 1000 -1500 lots + in the S&P contract, that would certainly hold it in place for a while as they closed out. Duno about the mini.

This is quite a bit less than suggested by jmreeve, but I was thinking in terms of big single traders.

Tomski said:

Enough to manipulate a market....

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To be more specific, enough money to cause enough volatility so that nobody on margin survives to stay long enough to make significant profit. This is the name of the game. FX pool operators offer 200:1 or more. Why? Because in this way they can win what the weak hands lose.

Alex