Day Trading Scenario: $20,000 What Are My Trading Options?

– Trader’s Scenario:

o Trading Gold, Russell, Crude on 13r chart (day trade & swing trade)

 Stops and targets will be variable
 Average stop = 20 ticks

o Currencies, Euro, Pound, Yen on 8R chart (scalping)

 Stops and targets will be the same

• 8-12 tick stop
• Targets = 8/16/Runner (8tick stop)
• Targets = 12/24/Runner (12tick stop)

o $20,000 account

 I will begin with 3 contracts, and take 1/3 of the position off at each target; this is a very conservative way to get started.

 Add a contract for every $1000 NEW equity you see in your account.

 Max would be 5 contracts at $20,000 to make sure you keep a very conservative approach to LEARNING and EARNING.

o Trade management?

 First thing is learn the fast track, which will develop your patience and discipline, and the ability to overcome a losing trade.

 Don’t blow that account, start on a demo for 2 weeks of practice.
 After seeing 2 weeks of practice, we want to see consistency in our results at the end of each week.

– 1 contract trading, what is the min

o $60 per loss = $3,000 to start
o $100 per loss (10 tick stop)= $5,000 to start

 Most traders will be around 3-4%
 1 contract needs only $2500

– Trading on a demo compared to trading in a live account

o NT makes an amazing demo, very life-like
o The biggest concern with a demo account is you don’t get the slippage you would in a live account.
o Inside the advanced course we show you how to make your demo look and feel like live market trading.
o Look at section 5 of the ADV course for setting the properties of your DEMO.

– Stops for scalpers are intended to be very tight which places more emphasis on the ENTRY.

o Scalping may seem to be easier, but you trade more often, so we need to keep a tight stop.

o If you notice that a 6-tick stop is not holding your trades, move to an 8, 10, 12, but make sure you move your targets out to make the same risk/reward ratio.

– Who trades a 34-range chart?

o Swing traders and position traders will use the pattern on the 34-range to trade with.
o Day traders and scalpers will use the 34 range chart to identify the most likely areas to take winning trades.

– How can I get off the emotional rollercoaster?

o Discipline Cycle

o Section 4 of the ADV course has the whole chapter on emotions, and I share my story of how I overcame them.

o As a guest, you can see a piece of this on the blog..