Good Day Trading Futures

First, I’ll catch up. Yesterday, I blew an existing PA account AND a new one. I typically trade two contracts and then play around with what I call a “quickie” ATM strategy. Basically, a quick scalp for one lot with a $50 target. I use it when I see a quick dip in a strong move. Unfortunately, NinjaTrader seems to default to my ATM strategy that uses two lots so, when I thought I was doing a quickie, I inadvertently maxed out my account at 4 lots and it never recovered.

Two things I learned… First, make sure the correct ATM is selected. Second, it shouldn’t matter where I am in a trade – in profit – or not – when my analysis suggests it will move against me, I need to get out immediately! No more hoping things will turn around! Taking a loss is my biggest weakness.

I have decided that Apex’s $25k account works just fine for me. Why spend more money when it is unlikely I’ll ever want to trade more than four lots at a time? If I want to increase my earnings, I can always add more accounts. Unfortunately, this means I have less leverage – in the beginning – but after getting the PA to $2,500 profit – there’s no difference between the $50k account and the $25k account. Other than the max lots, of course.

So, after blowing my accounts, yesterday, I decided to take advantage of the one day to pass sale and got one more $25k account. I was immediately under water but was able to claw my way back and pass in one day.

I have to say risk management takes a back seat when trying to pass in one day – but the cost of the eval account is really the only risk, so I was willing to let it go.

I paid for my new account this morning and waited for the dust to settle from the open. I convinced myself we were going to have a bullish day and placed a long trade. Of course, I was immediately down $400+. In the past, I would have continued to move my stop with the hope that things would turn around. But, today I decided to reverse my position and immediately got the account back to break even. Again, accepting a loss is my biggest weakness and forcing myself to take the loss is why my account was not blown. After a few more scalps, my account was up $400 before calling it quits for the day.

Remember – the biggest winner is the best loser!!!!