Wednesday, December 20, 2006

New Portfolio Idea! Motivation For All!


I've got plans to open another brand new futures trading account. This time there will be a twist involved.

Here are the Details:
1.) I'm going to make a deposit of $5,000 dollars into the account.

2.) I'm going to day trade the RUSSELL 2000 E-mini with this account along side of my larger account trade for trade of proportional contract size. This means if I'm trading $15,000 dollars in one account with 30 contracts, I'll trade 10 contracts with the $5,000 account.

3.) My goal of this project is to show all of the viewers, investors, not-yet-started Futures Traders that it is possible to first of all, make money with little start-up capital, successfully day-trade futures using 1 point scalps, and start a goal to double your portfolio.

4.) I've recieved criticism for posting my big days and not focusing more on losers. I've been called a newbie and that I'm going to fall flat on my face. Well this trading demonstration is to prove that this blog is serious, and that with hard work, dedication, and a search for more knowledge & experience in the financial world anyone can make some extrordinary money to pay necessary bills or even make a small fortune. Strict guidelines in trading the futures markets will be employed.

5.) Okay, you start with $5,000.00. The goal is to sucessfully scalp 1 net point each day, while simultaneously increasing your contract size for every $500 earned by one contract. (each Russell 2000 Emini contract cost $500 to trade).

Here's how things could thoeretically play out if one could trade flawlessly:
Day 1.) $5,000 (capital) x 10 (contracts traded) = $1,000 (1 net point for the day)

Day 2.) $6000 (initial capital + net profit from previous day) x 12 (contracts propotionate to capital amount) = $1,200 (1 net point earned)

Day 3.) $7,200 (initial capital + profits from previous days) x 14 (contracts) = $1,400 (1 net point profit)

Day. 4) $8,600 (initial capital + profits from all days) x 17 (Contracts) = $1,700 (profit on 1 net point)

4 Days to Double the Portfolio,Total Capital (profits included) = $10,300 -> Done!
(excluding commissions, but with $0.75 cents per contract this is minimal)

Obviously no one can trade perfectly, markets do fluctuate a vast amount of points on different days, and some days will not net a full point for the trader (possibly even a loss). If this sounds to good to be true, it isn't, and is totally achievable and if everything goes according to planned the results are posted. My recommendation to anyone wanting to get into the Futures markets is to set up a "virtual trading" account. This will allow for some time to monitor how rapidly the Futures trade and get some insight as to what it would be like. On another note, some traders might not be comfortable with maxing out their capital to trade the most amount of contracts (very level-headed trader). You could decrease your contract size to offset the risk you're taking, and granted it would take longer to achieve the ultimate goal, you wouldn't be risking as much per trade, and gains would be slow and steady.

I've stated my goals, and I'm motivated to help other traders get started with setting goals, making profitable trades, and providing to be a good example of a disciplined trader.

To open an account with only $0.75 cent commissions on trades go to
IB Direct Futures Trading, $0.75 cent commissions
More to Come,
-CalTrader

28 comments:

Anonymous said...

Good luck! Can't wait to see how you do. Forget the naysayers, they're bitter that you have steel "cahones" and have figured out how to employ discipline, money management and a well-executed gameplan at such a young age. Good for you! -TVH

Tyro said...

1pt/day is totally doable, and 10 cars isn't crazy. I'd love to see you do this and wake up some people. Heck, I'm trying to trade the futures and I'd love to be woken up.

Prove those guys wrong, Cal.

RennyBA said...

Here from MyBlogLog - thanks for adding me!

This project sounds interesting - I would say go for it and please keep us posted!

Btw: Wishing you A Marry Christmas and welcome over if you like to see traditions of the holidays in Norway:-)

a.k.a. Blandly Urbane said...

Well if your site is going to mean anything for me I'm going to have to get a clue. There's alot to learn, I'll check back.

The chartist formerly known as Ugly said...

Yeah it is nuts what only $5000 can do for you trading futures.
Just make sure to manage your risk and you should be fine.

mc said...

Wishing you Good luck Caltrader!!!

Anonymous said...

I want to see you do this as well. I'm paper trading the emini right now, and hope to go live as soon as InteractiveB lets me. I'm starting at only 2 contracts right now, but will move up as I get more comfortable.

Anonymous said...

HAHAHAHA DISCIPLINE + MONEY MANAGEMENT = 10 cars on a $5000 account.

Why didn't I think of that?!!!

roger said...

Does the $0.75 commission include all fees? Is there some fine print?

Haha!

Anonymous said...

I cannot wait to watch you trade real money and make 2x every week or so. Should be a great ride.

Anonymous said...

"if everything goes according to planned the results are posted"

you are whacked-out

Richard said...

Are you saying this is a (potentially) 1 week experiment, that ends when the account doubles? Or will you keep trading the account and posting your performance? I couldn't tell from the post.

dan said...

Good luck buddy,

be careful and only take setups that kickass.

you don't have to trade everyday, either. =)

i'm ready to go prop and either go big or go home. this'll help me decide

best of luck, IM me sometime, we haven't chatted in awhile.

your pal,
dan (boogster.com/dan).

Anonymous said...

Nice idea Cal, definately looking forward to this!

JP

Anonymous said...

how did it go today Cal on a dull no movement day?

F. said...

There sure are a lot of haters.

It's possible as long as you are extremely selective and only take trades in which multiple edges line up to maximize chances of profitable outcome. Also, the 3:1 rule probably won't work if you are looking for 1 point scalps. You may have to actually risk more realistically like pros (1:1.75) for highly probable setups.

I sometimes daytrade near-the-money index options for 25-125% intraday. It's definitely not impossible.

Anonymous said...

a real trader does it consistently for a year plus - this guy is a newbie - professional traders neverrr talk about there cash.

This a crash and burn coming - folkes nothice the guy never gives his experience. This is too funny.

Anonymous said...

a one point gain on a 5000 account trading 10 contract is 1000 - but a one point lose is a 20% drop on an account. Stop posting this crap for people to read. Trading is marathon not a sprint - newbies reading this are going to get crushed. Its just amazing what is on blogs these days.

Anonymous said...

I made $1900 today trading the ERussell mini. You are right on when you say how easy it is to make money. My account is only 9000 dollars total. Cant wait to get that new car.

Anonymous said...

i love the comment if everything goes according to plans - Now for those of you new to the market - like this blogger - there are no plans with the Market - its does what it wants when it wants - for those reading this dont follow this hype, you will get crushed in time. Already this newbie trader will blame the market if things dont go as planned.

Cal said...

To the person who said, "Trading is a marathon, not a sprint."
In my opinion this is true and consisent wins make for a great trader, and surely a good income. However, the purpose of this experiment is to prove that a "I can donate a proportion of my capital and use high risk/high reward trading to double this mini account".

To the person who says I'm leading on other traders to blow out their account, and that I'm a newbie because I post how much cash I make.
First off, I'm young, yes. I post numbers because it makes things interesting, it provides reader perspective of what I'm working with, and how I'm being rewarded by my trading. Also, you seem to have only read this post, which would show why you're ignorant of me providing details of my previous trading experience, and that I've studied the markets before I ever put a single penny to use. Thanks for reading though, and taking your time to negatively comment, it makes me happy to know you're adding hits to my site :-)

-Cal

Anonymous said...

I understand why some of you are posting comments like newbie,crash and burn,etc. but give em a chance atleast lol..its not like he just got lucky once and is going to do it agian.. Cal has been trading with some success so i think he understands the challenge he has ahead of him.

JP

Anonymous said...

Cal,

Your devotion is great. But "oversized scalp" is deadly.
Don't think about how much you can make. Think about what you can lose first.

1. what if IB failed when you are in the market?
It just take one occasion to damage your account and mentality.

Anonymous said...

Cal, how much are you actually paying for commissions one way on 1 contract for the eMini Russell 2K? Thanks and keep up the great work!

Laurence said...

Thanks for adding me on mybloglog !

The ferrari wasn't my gift !!! What a pity !!! :-D

Flatwallet said...

I wish you good luck and hope you do well.

Zoomie said...

Anonymous said: "Don't think about how much you can make. Think about what you can lose first."

Very true. Phantom of the Pits said,
"Trading is a loser's game. You must learn how to lose. The biggest loser who loses small will continue the game."

My trading improved when I started to look into the wisdom provided by traders such as the Phantom.

Lord Tedders said...

Cal,

You gotta have balls of steel to trade this way - but unlike the naysayers I know it's doable.

When you're trading like this (using a fraction of your capital) you have to expect coming close or even blowing out an account this size with 10 cars. But if you can potentially double your account every week.

If you getta chance check out my blog where I show how I scalp the Russell everyday.