[MidnightStar]

1. As with all things in life, it is important to start off with a understanding of the fundaments. You can get more information on Futures Trading through the internet or from my website.

2. Set aside an initial capital outlay. Most broking firms will require a minimun of Sgd 5,000 to start a trading account which you can trade Futures, spot FX and spot gold & silver. However, due to the current market volatility, an initial outlay of Sgd 10,000 to sgd 20,000 will be more comfortable to start with. Make sure that these are excess funds that you can do without as this will affect your trading mindset.

3. Choose a broking firm to open account. Futures trades does not have a Central Depository like trading in shares, therefore you cannot trade initiate a trade with Broker A and square it through Broker B. Most local broking firms charge about Usd10-15 per lot. Although nowadays many interactive brokers, which allow you to open an account online, can charge lower but I would recommend you open a account with the local broking firms. As local broking firms are governed by MAS, clients’ funds are protected and segregated from the firm’s other funds and there are no charges for deposit and withdrawal of funds.

4. Your trading account is maintained in the currency of your initial deposit, ie Sgd. However, the profits and losses as well as margin requirements, commissions are maintained in different currencies depending on your positions. Say, Nikkei is traded in Yen and HangSeng is traded in Hkd. The broking firms pays u interest on the credit balances of each currency (subjected to a minimum balance), but will also charge you on debit balances of the currencies. There is also an element of exchange rate risk when converting you profits / losses back to sgd.

Happy trading!

[LordAlfa]

I wonder why you called yourself MidnightStar.

You Night Owl? Trade eMini ES or YM?

Are you are position trader or scalper?

[MidnightStar]

in the darkness of trading, the MidnightStar guides you...
i trade ES, SiMSCI and whatever that i see an opportunity in. Mostly position trades.
what abt urself?

[LordAlfa]

Currently in scalp mode. Most ES and YM. The market has not turned downward yet to take ABC entries. I see 127.2% to 161.8% price extensions on the 610 tick chart before it comes back opposite.

Prior to the rally, exceeding 423.6% price extension was easily hit. Just ride the waves down and trail the stop to the last retrace to ensure profit.

Now take 2pt here, 2pt there.

Tonight might retest 787. I think ES needs to break 830 to go higher, else, it will turn this week. 3-4 weeks of bear market rally is the best it will do.

[MidnightStar]

Spot on man!

yea, i share the same sentiments. Think the bear rally party is over!
Markets been seeing a lot of big swings, scalping will really have to be very disciplined!

[cjc81]

Originally Posted by LordAlfa

Currently in scalp mode. Most ES and YM. The market has not turned downward yet to take ABC entries. I see 127.2% to 161.8% price extensions on the 610 tick chart before it comes back opposite.

Prior to the rally, exceeding 423.6% price extension was easily hit. Just ride the waves down and trail the stop to the last retrace to ensure profit.

Now take 2pt here, 2pt there.

Tonight might retest 787. I think ES needs to break 830 to go higher, else, it will turn this week. 3-4 weeks of bear market rally is the best it will do.

Originally Posted by MidnightStar

Spot on man!

yea, i share the same sentiments. Think the bear rally party is over!
Markets been seeing a lot of big swings, scalping will really have to be very disciplined!

Hey, just a quick question, when you guys take trades like this, how do you set your initial stops?

[MidnightStar]

Stops depends on your risk tolerance. And for scalping, makes sure your risk-reward ratio is proportionate, you won't wanna leave a 20pts stop for a 2pt profit.

[LordAlfa]

I start with an ATM of 2 stop loss. Then see my risk. I would place 1 tick below/above the last swing high/low.

Sometimes get stopped sometimes the risk reward ratio is so good I can make a 0.75 point stop loss and ride the wave down.

Take small losses but take big winnings. You can lose more times and win less times. But when you win, you win big.

Learn to take a loss.

Learn to let your profits run.

Learn to protect your profits.

[LordAlfa]

This is a trade I did on 17 Feb.



I use Tick charts. I use 233 and 610. 233 for scalping and 610 for ABC entry.

I do monitor the 1, 5, 15 and 60 min charts. critically the 1 and 15 min charts.

The chart is self explanatory. My platform is Ninja Trader 6.5

Open the image in another window for the big picture.