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In a message dated 98-08-30 06:31:32 EDT, you write:
<< I think there is a distinction between 'large range' days and overly-
volatile
days, at least in my mind. >>
Hi Tim,
At the risk of sounding like I'm contradicting myself, days like the last few
are the exception to the rule. They probably shouldn't be included in the
generally accepted description of 'volatile'. I'm glad to see that it's not
just me that finds such markets difficult to trade and conclude that it may be
best not to (....unless you really know what your doing).
But I've always thought the problem lay with the speed of the market and not
the volatility. If the market had moved through the same range(s) but just
more slowly, it would have been a dream to trade. I have always found that it
is the speed of the market that highlights my disadvantage of being 'off the
floor'.
On days such as these, by the time I get through to place the trade, the price
has moved so far away from my original signal, that I have no reason to take
the position anymore. On some occasions my indicators have even started to
turn the other way !!!!
My point was that I couldn't agree that increased volatility would make the
market not worth day trading. Maybe the increased 'speed' of the market will
make it so. That is, unless we have the ability to execute and be filled
equally quickly. If an acceptable balance is maintained, then day trading will
always be 'worthwhile' for those who prefer it to position trading.
Rgds,
Kim
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