I am new to trading and have never traded on a real money account. I am currently testing a strategy on gold futures trading. I am using the ThinkorSwim trading platform with REAL time data and quotes(so they say).
In my strategy is scalping strategy I suppose. I look at the 1 minute gold chart and determine support and resistance levels, when the price hit one or the other I go short or long. I set my limit order 2 or three ticks above my enter price, which will give me a profit of $20 or $30 per trade. Commissions and exchange fees cost my $3.76 per contract, so $7.56 to enter and exit a trade. I set my stop loss order at 10 ticks. I 2 tick profit can give me $12.48 profit per trade per contract. And If I can make numerous trades per hour I can have a decent day.
I am looking for reasons as to why this wont work. One reason I can see is that the bids and asks are easy to get into on the live simulated trading whereas on a real account it may be a little tougher to get into a trade at the desired price.
I ask myself "If it's such a good idea, why isnt everyone doing it?"
I try to justify this by saying that not many people are going to settle for making $12.50 per trade but and most people don't care to sit and look at a chart all day.
Any help will be greatly appreciated!!
In my strategy is scalping strategy I suppose. I look at the 1 minute gold chart and determine support and resistance levels, when the price hit one or the other I go short or long. I set my limit order 2 or three ticks above my enter price, which will give me a profit of $20 or $30 per trade. Commissions and exchange fees cost my $3.76 per contract, so $7.56 to enter and exit a trade. I set my stop loss order at 10 ticks. I 2 tick profit can give me $12.48 profit per trade per contract. And If I can make numerous trades per hour I can have a decent day.
I am looking for reasons as to why this wont work. One reason I can see is that the bids and asks are easy to get into on the live simulated trading whereas on a real account it may be a little tougher to get into a trade at the desired price.
I ask myself "If it's such a good idea, why isnt everyone doing it?"
I try to justify this by saying that not many people are going to settle for making $12.50 per trade but and most people don't care to sit and look at a chart all day.
Any help will be greatly appreciated!!
HELP! Why wont this work?
