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successful day trading requires volatility and liquidity, both which
are found now in s&p's and bonds, and a second tier in crude, yen, and
beans.
day trading OJ (high volatility, low liquidity) is as crazy as day
trading euro$'s (extremely low volatility, very high liquidity). you
gotta strike a balance between the two.
slippage (skid) is a fact of life in many markets. it's a cost of
doing business that must be accepted. unlike commish, it's not
negotiable, except in the sense of choosing whether or not to trade a
high slip market or during fast market days.
TJ
---Brian Massey wrote:
There is paradox here in that day trading demands volatility and
minimal slippage. A distinction needs to be drawn between volatile
days and fast market days. Thursday's S+P action didn't have a lot of
volatility
meaning swings in one direction, then back, but it fell fast and sharp
which meant slippage was HUGE.
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