funny thread!! a lot of talking....some good / some scary >> scary maybe because every trader is trading what he perceives of the market ... not the market, you cannot trade the market.
Spread : when i hear that swing traders dont mind spread, i can only jump and bang my head on the roof ! SWING traders do have the obligation to increase size to achieve their objectives! how can one say spread is nothing for Swing traders...are you a one-lot trader? Spread like losses are the cost to do this business, dont care about it and it will eat your bottom line.) ... brokers are having fun : best traders know the market, their system tells them the best place to put their orders : the spread is one thing, dont forget slippage (increased at broker's discretion) : see below abt system. Last : risk is NOT decreased with spread, you dont assess risk this way, you may say profit is increased since it is a cost, but please don't trade with the fake impression that lower spread will reduce your Risk : understand the market, have your R/R set ASAP and shoot for your objectives, dont look the spread as a barrier : i trade Gold = high spread, it has never kept me out of this market, i would even say that the higher the spread the better the market is, with proper MM, of course!
about systems : buy someone else's, follow someone else's, back-test any indicator you just found or heard about and you are BOUND to be join that hudge cemetery! a system that will work is something that YOU, and you only is building, the market is a beast that needs to be tamed (understood), you just dont ride it with someone else's advice or system...if you want to make a living out of it. a system is the reflection of your OWN market perception, nothing else! if you grab some indicators, EA, external advice like all those readings available now on the net : WHAT is this? this is not your own perception : this is just a sugar-free version, and while you may think you are on the right track, your broker is already hearing the sound of the margin call and showing his too-white-to-be-true dental display...
a real system gives you different vision or angle of market : it s called a Set-up ... just grab any indicators or purchase any system out there on the web and you are bound to realize that you bought or are using a pack of filters giving you the SAME signal in different version.... think about what the market is, who's playing there, the vested interests, and be aware it s a shark industry, do you really think you can make it with just a purchase??
-work on yourself : psychological profil and emotions are the most important part of your system (that s your personal holy G!), and once again dont believe the hype : USE your emotions, but controle them, keep them as a trigger or an assistant not as the CEO of your personal venture. people without any emotion are not able to manage anything and a trade HAS to be manage from A to Z. And as a surprise noone can keep his emotions at bay, unless he just got out of a car accident with frontal lobe damage! that is a given! emotions are and will always be here with you, you just need to sign a contract with them, dont keep them in the basement, they will force the door anyway and make your trading experience look like hell!
about big account : it is, of course better to have a well-funded account ... and of course your broker loves that ... BUT there s no miracle solution : if you know what you are doing which means if you have a track record, a system that fit s you, and if you know what the market is telling you, what makes it move, then you can start with 5k, why? because you can adapt your MM anytime since you know what to expect from the market, of course then you need timing and most important : stick to your system.
about scalping : Scalpers dont make more $$ than Swing, people please stop reading business marketing-newsletter or "i-can-make-you-rich" strategy market gurus'crap : Scalping is for pros, keep it that way for now, if you want to survive, big traders can be scalpers of course!! they have a 5 to 8 year experience!! use scalping once you are positioned (mid and long term) and it goes without saying that being positioned means that you "master" position trading ... then once you have 2 to 5% of your Capital on the market with proper MM and position management (which means that you know exactly when you need to close positions to keep your ratios alive) then you can start "scalping" : this is the Ferrari of the trading univers, how can u sclap without knowing who s behind the move and what is his/r motive?? you might get it right sometimes if you grab some black box stop chasing, but most of the time you will face that out-of-the-blue-Tidal wave and you dont have the technicals ( access ) to be positioned in a few secs.
Leverage : 10-lot trade !! you are either an old timer, with hudge experience, or have a system that allows you to do this with great MM adjusted on a $1 million account, which i hope u have! all the more!! >> 10-lot on a scalp ; i just wish you the best long lasting experience ))
-increase size on a "drop by drop" basis !! above 4 / 5 % and Options are for ultimate system, with proven track record (at least 150 trades) ... have a reg rising equity line, then increase size and then, only then, start options, not before....you may understand leverage, you NEVER know the sequels it will have on your account, once again when markets accelerate a 10-lot is an accident waiting to happen, even for a big trader with the right tools.
you guys have a good trading session!
exni