Wednesday, August 4, 2010

Can You See?

Alright people, check this out. This morning I traded ADP Nonfarm Employment. In and out in less than 4 minutes, 1.75 points profit. With 2 contracts that's $175. That's $1000 invested to make $175 in less than 4 minutes. 17.5% ain't bad, right?

Keep in mind that this was a paper trade (see previous post), but the result is definitely translatable to live trades as well.

Now let's imagine I'm someone with just a little bit more money to play with than $1000. Let's not make it an astronomical number, but lots of people could spare a few grand with which to trade. Let's say we're working with $5,000. What would my profit have been today if I traded 10 contracts (the equivalent of $5k)? Pulling out our math wizardry: 175 * 5= 875. Same amount of time, same amount of work, little bit more money to work with, and a trading profit of $875. In less than 4 minutes.
Here's the screenshot:

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