RE: Trading Futures

["Guy Tann" <grt@xxxxxxxxxxxx>]

Nicholas

I think the reason we got involved with futures was because of the leverage
possible.  Granted this makes for a big exposure, but also provides for
substantial returns.  Sort of like Vegas with a lot better odds. <G>
Seriously,  you do have a lot of opportunity to make money if you have a
halfway decent system, the ability to manage your money, and the stomach to
whether major market moves like yesterday and today in the S&P pit.

Another reason, years ago, was that there was almost no volatility in the
market except for periodic spikes.  After the crash of 29, the market didn't
recover back to it's old level until the 40s.  If you take a look at the
market back in the early 50s, you'll see that there wasn't a lot of movement
at all.  In addition, the futures markets move all the time, based upon
weather, governmental instability, political or union unrest, geological
problems like earthquakes, natural disasters, etc.  When you add in Supply
and Demand (the normal market movers) you have a fairly volatile situation
that lends itself to a mathematical, statistical, graphical or other
approach.  If I had to summarize why we trade futures, I would have to say
these are the primary reasons.  If we ever go through a debacle like 29
again, the stock volatility will settle down to a more 'normal' level and
we'll retreat to whatever is the most volatile at the time (in terms of
market volatility, size of open interest, etc.)

Regards

Guy

-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx
[mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Nicholas Kormanik
Sent: Tuesday, May 04, 1999 9:15 AM
To: metastock@xxxxxxxxxxxxx
Subject: RE: Trading Futures


Guy, and others,  Would you mind giving a paragraph on why you prefer
trading futures over trading stocks.  I have no experience with futures, and
am just wondering.

Thanks,
Nicholas