How To Make Money Trading The Markets.

This is a discussion on How To Make Money Trading The Markets. within the Stocks forums, part of the Markets category; hi there! I've been trading index futures (FTSE & S&P) on and off for 5 years I want to scalp ...

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Old May 31, 2009, 2:57pm   #401
Joined Feb 2009
hi there!

I've been trading index futures (FTSE & S&P) on and off for 5 years I want to scalp these futures contracts (using level 2 platform). My problem is that I cannot find an optimal stop loss & risk reward ratio for scalping. For instance, I have placed my stops very tight i.e. 4 ticks on emini contract, but obviously this got hit too much, only to reverse 10 mins later. So I tried increasing the stop to 12 ticks, but this was too much risk considering I was only taking profit at around 6 ticks. I prefer intraday trading to position because I like to close my positions in the evening and sleep easy. Any guidance anyone? Many thanks.
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Old May 31, 2009, 3:03pm   #402
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Originally Posted by bennie83 View Post
hi there!

I've been trading index futures (FTSE & S&P) on and off for 5 years I want to scalp these futures contracts (using level 2 platform). My problem is that I cannot find an optimal stop loss & risk reward ratio for scalping. For instance, I have placed my stops very tight i.e. 4 ticks on emini contract, but obviously this got hit too much, only to reverse 10 mins later. So I tried increasing the stop to 12 ticks, but this was too much risk considering I was only taking profit at around 6 ticks. I prefer intraday trading to position because I like to close my positions in the evening and sleep easy. Any guidance anyone? Many thanks.
your stop loss should be set at the point you know you were wrong about your original call in my opinion. Sometimes that will be further away than you like & you'll have to pass on the trade.

a fixed number of points/ticks on every trade seems very arbitrary to me...
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Old May 31, 2009, 3:16pm   #403
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your stop loss should be set at the point you know you were wrong about your original call in my opinion. Sometimes that will be further away than you like & you'll have to pass on the trade.

a fixed number of points/ticks on every trade seems very arbitrary to me...
interesting point, thanks Pedro. So this would mean that scalping would not be possible with this kind of strategy.
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Old May 31, 2009, 4:35pm   #404
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bennie83, this stratergy has nothing do do with scalping or index futures, which move totally differently, you will get a lot more help asking in a more appropriate thread or starting a new one.
bry.
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Old May 31, 2009, 6:50pm   #405
 
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Mr. Charts started this thread Thanks, Bry.
Bennie, as you can see this thread is about day trading US stocks, not scalping futures, so your question is not in the right thread.
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Old May 31, 2009, 9:18pm   #406
 
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Mr. Charts started this thread And Pedro is right - why on earth exit a winning trade just because it's hit an arbitrary target?
Exit when you have evidence the price is turning against you -or about to do so.
This applies to stocks as well - otherwise I wouldn't bother to comment.
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Old Jun 3, 2009, 8:15am   #407
 
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On page 36.

I just want to say that I am enjoying the read and appreciate the time each of you have put into this thread.
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Old Jun 3, 2009, 3:05pm   #408
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This thread shows much promise...

It's going to take some getting used to - but in my opinion there seems to be gold in them there hills
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