re: futures down 15 points
well before you do, make sure you do some paper trading first.
Trading futures seems all easy from the charts, but the problem is most times you can not wait for a top or bottom to form, you just got to jump in.
Reason for this is, and take the current market example. Volume has fallen off, stocks are going sideways and are forming quite a normal top. When stocks break from this, it will probably a night of about -160ish. Now to most people they will only try and jump in then, problem is, by doing so you have to set your stop 250pts away and are thus risking 200%. If you are a normally trade and can be wrong now and then, it only takes a few hits like this.
I will also add that you can not set tight stops on futures, simply does not work, they will always be hit and you will always end up losing.
On the otherside, the side I am normally on, you jump to soon, cop a painfull move againts you before the markets trend my way again.
So its a really fine balance you have to fine between risk managment and profit maxmisation.
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