RTY Trading Testbed [Record = 14 for 64 | -3.70pts | -$185.00 per contract]

[PaceAdvantage]

Think of 1 contract as a single share of stock, and you'll probably understand better

Trading equity futures is nothing complicated. Like I said, it's just like trading a stock.

Except RTY moves in increments of .10, and each .10 move is worth $5 per contract, or $50 per point per contract.

[PaceAdvantage]

I can't believe how much I've gotten fucked over in this latest trade...LOL

I'll be lucky to make any profit by the time it's over in about 30 minutes...but it was only a 1 point stop, so it's not like I was risking much of anything to enjoy the ride.

Who's doing all this buying at the end of the day on the last trading day of the year I have to ask...lol

Is everybody covering their shorts? Are people gobbling up for the new year? What happened to tax loss selling? LMAO

[PaceAdvantage]

Futures contracts like RTY (Russell) and ES (S&P) trade just like stocks...you buy at one price and sell at another...you short at one price and cover at another...

These contracts essentially follow the Russell 2000 (RTY) and the S&P 500 (ES) so it's just like trading an ETF in a sense...except you get better tax treatment in that 30% of your profit is taxed as long term gains even if you hold it for one day...and you don't have to report every single trade at tax time like you do with stocks...you only have to report your total profit or loss at the end of the year to the IRS.

Hope this helps.

[Half Smoke]

__________


got it - thanks


.

[PaceAdvantage]

I was wrong...60% is taxed as long term gains:

Futures traders benefit from a more favorable tax treatment than equity traders under Section 1256 of the Internal Revenue Code (IRC). 1256 states that any futures contract traded on a U.S. exchange, foreign currency contract, dealer equities option, dealer securities futures contract, or nonequity options contract are taxed at 60% of the long-term capital gains rates and short-term capital gains tax rates at 40%—regardless of how long the trade was opened for.
1
As the maximum long-term capital gains rate is 20% and the maximum short-term capital gains rate is 37%, the maximum total tax rate stands at 26.8%.
2

Section 1256 contracts are also marked to market at the end of each year; traders can report all realized and unrealized gains and losses, and they are exempt from wash-sale rules.
1

https://www.investopedia.com/article...ions-taxed.asp

[PaceAdvantage]

Originally Posted by PaceAdvantage

SHORT RTY @ 1780.70

stop @ 1781.70

To think, this trade was in profit by almost 27 points around 10am...and the market just took almost all of it back from me as it ripped up relentlessly in the final hour or two of trading this afternoon...the life of a trader...oy

COVERED SHORT @ 1777.80

P/L = +2.90pts

Record = 12 for 38 | +87.90pts | +$4,395 per contract

[Half Smoke]

Originally Posted by PaceAdvantage

I was wrong...60% is taxed as long term gains:

the buy and hold guy of a stock or mutual fund may never have to pay capital gains taxes if he doesn't trade or cash out to buy something

someone might say - well then what's the purpose of accumulating wealth - if you're not going to enjoy it_____?

well, for some they like having it there for insurance - in case something goes terribly wrong in their life and they need it

or to pass it along to their heirs

the capital gains tax on such an account - held for maybe 25 years - (such as mine) would be huge if applied

but those who inherit from such an account owe ZERO in capital gains

the "Angel of Death" loophole

the basis of an asset left to an heir is "stepped up" to the assets current value

and there is no Federal inheritance tax - but a few States have it




for me - I do this with index funds - feeling that I can't go wrong

I might not make as much as a highly skilled trader - but I will match the performance of the sector

Vanguard's S&P 500 index fund - ticker symbol VOO is I believe the most popular index fund out there



.

[PaceAdvantage]

LONG RTY @ 1785.70

stop @ 1780.10

[PaceAdvantage]

Originally Posted by PaceAdvantage

LONG RTY @ 1785.70

stop @ 1780.10

That didn't last long...some crazy swings today...

STOPPED OUT @ 1780.10

P/L = -5.60pts

Record = 12 for 39 | +82.30pts | +$4,115 per contract

[PaceAdvantage]

Looks like I might lean short tomorrow morning...stay tuned...

[PaceAdvantage]

You guys remember back in 2015 when I posted options trades for an entire YEAR and posted a profit every single month except for one?

Yeah, I remember it too...

http://www.paceadvantage.com/forum/s...&postcount=350

I'm one of the rare few on this board over 20+ years that has posted MULTIPLE horse racing threads of 500+ picks that showed a flat-bet profit...and now I'm working on my SECOND trading thread looking to show a profit over a substantial amount of time...

Why does hardly anybody else ever do this?

People who post picks almost never keep track...what's the point if you're not keeping track?

[Half Smoke]

Originally Posted by PaceAdvantage

You guys remember back in 2015 when I posted options trades for an entire YEAR and posted a profit every single month except for one?

Yeah, I remember it too...

http://www.paceadvantage.com/forum/s...&postcount=350

I'm one of the rare few on this board over 20+ years that has posted MULTIPLE horse racing threads of 500+ picks that showed a flat-bet profit...and now I'm working on my SECOND trading thread looking to show a profit over a substantial amount of time...

Why does hardly anybody else ever do this?

People who post picks almost never keep track...what's the point if you're not keeping track?

please post the links to a couple of your profitable horse racing threads - I would love to take a look

thanks


.

[PaceAdvantage]

My picks were posted in separate threads every day from March - May 2017

Here is the final thread from the last time:

http://www.paceadvantage.com/forum/s...d.php?t=138710

TOP PICK (OVERLAYS ONLY) Running total (54 Days):

108 for 528 | $1056 Wagered | $1093.80 Returned | $1.04 ROI ($1.00 = Break Even)

It was a shit ROI, but it was positive nonetheless

Trying to find the other...

[PaceAdvantage]

Oh, I couldn't find the other one because I remember now that I posted it in the VIP section in 2018.

Here was the final results on the final day...showed a flat bet profit after 500 plays:

[PaceAdvantage]

Obviously, not the time to short RTY...lol

I will be shorting on the first sign of weakness though...