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Earl:
Well, maybe I was indeed looking at greener grass, so to speak. I'll still keep
looking at individual stocks as an assett class, but it was interesting to hear
your response, since you ar approaching futures now after trading stocks...
Best,
Tim Morge
Earl Adamy wrote:
>
> I began day and position trading futures this spring after position trading NYSE
> stocks in lots of 1000-3000 shares for a decade. I had made good money (10-20%
> per position over 5-10 days) using a program I wrote which scanned 2000+ stocks
> nightly for candidates which had been hammered to the bottom and were completing
> a base. I typically reviewed 50-100 charts per day to evaluate the candidates. I
> started looking for another market to trade because: 1) stocks as an asset class
> had risen to lofty levels, 2) my screen was turning up fewer and fewer good
> candidates, 3) I was routinely seeing stocks chopped in half in a day or two,
> and 4) (and most important) I was afraid to trade the short side against
> entrenched management's which can actively manage the flow of earnings to the
> bottom line. I tried the SPY (Spyders) for a bit but couldn't get the returns I
> expected without leverage.
>
> I'm far from an old hand in the futures business but I do know how to trade and
> I have established discipline to exit bad trades quickly and unconditionally. I
> day trade the S&P and have position traded a variety of other commodities
> including sugar, dmark, pound, ngas. I find futures offer more asset variety,
> offer opportunities to trade both long and short, and permit me to balance
> returns and leverage in whatever combination I find comfortable. I do detest the
> futures industry attitude toward off-floor traders, automation, and information
> flow - makes me appreciate the great online electronic trading I had at my
> fingertips while trading on the NYSE via DiscoverDirect. Futures trading is a
> bit different and it's taken me months to adapt my techniques and get
> comfortable with futures trading, but trading is trading and futures is a better
> and more interesting game than stocks. One man's experience, anyway.
>
> Earl
>
> -----Original Message-----
> From: Timothy Morge <tmorge@xxxxxxxxxxxxxxx>
> To: Jim Osborn <jimo@xxxxxxxxxx>
> Cc: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
> Date: Monday, July 20, 1998 12:15 PM
> Subject: Re: Why trade Futures?
>
> >Jim:
> >
> >That's always the feeling I have had in the back of my mind. But these days,
> >with the increased volatility and the ability to use *some* leverage and the
> >masses specualting in stocks, I think it's a more viable possibility than it
> >was, say, ten years ago.
> >
> >I still don't trade individual stocks, but I am looking at them, trying to
> >decide if this new perception is indeed correct. If the volatility and masses
> >speculating and ability to trade Nasdaq L2 allow me to trade individual stocks
> >like I trade commodities, I think there may be greater edges to be found
> trading
> >an individual stock versus most commodities. You will certainly [I think] be
> >trading against a less savvy crowd in the stock arena.
> >
> >Then again, maybe I have had the correct perscpective all these years and now,
> I
> >too am falling into the 'grass is always greener' misconception...Anyone else
> >care to comment?
> >
> >Best,
> >
> >Tim Morge
> >
> >Jim Osborn wrote:
> >>
> >> was: Re: Floor trader Study
> >>
> >> "Neal T. Weintraub" <thevindicator@xxxxxxxxxxx> wonders:
> >> >As a software user, many of you can trade any market you want. I am seeing
> >> >that many of the users are Futures traders.
> >> >Why with so many products out there and obvious gimme trades in the stock
> >> >and mutual funds I wonder why the public loves a game where they have a
> >> >better chance of reaching Bill Clinton this afternoon than making it
> >> >trading commodities.
> >>
> >> I asked Alex Elder, after he'd described his early days as a trader,
> >> why he'd traded futures rather than stocks. His reply was, "I didn't
> >> have enough money to make a living trading stocks."
> >>
> >> Jim
> >
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