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Robert:
One thing I'd point out to the less experienced traders that read this list: The
one true advantage small traders have over larger traders is that they can
choose when to trade. The temptation is to always be in there, slashing and
burning for a profit. But if you are trading your own capital [and especially if
that capital is small], capital preservation should be paramount. If you watch
the screen and call your broker and the size of the bid to ask spreads set your
heart to racing, maybe your instincts are telling you the market conditions are
too volatile for your trading skills and the tools you are able to marshall in
your trading. Trade when you feel comfortable with the market conditions.
Don't allow yourself to feel an urgency to trade because 'this may be the big
one!'
Don't trade in overly-thin markets, whether the thinness is because it's the day
before Christmas or because you found a support line looking at November Chinese
silk cocoons. The markets will be here tomorrow and the next day and the day
after that. And there will be plenty of moves in markets that have good volume,
liquidity and orderly conditions. Trade when you are at your peak, when you are
ready to trade and when the market conditions suit you.
Tim Morge
Robert W Cummings wrote:
>
> Looks like margins haven't increased yet on the S&P Futures but many more
> days like Tuesday and Wednesday I believe it might soon. Hundred points
> ticks are tuff on the nerves when you had to much coffee. Quotes in real
> time were useless most of the day in the S&P with fast markets and 50,100
> point ticks the norm gives new meaning to the word slippage. Merc may have
> to invent a new stop order in the S&P something like "SIS", Stop It
> Somewhere..
>
> Robert
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