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Again, lerarning to recognize these fast days before you make 3 trades is
the key to protecting yourself (because you don't know it's 50 point day
until it's over). For the average trader who doesn't have a broker on the
floor it can be more difficult. If you trade through an IB and you suspect
something is up, ask them to call the floor, most usually will. If they
won't get a new one.
Brian
-----Original Message-----
From: Timothy Morge [mailto:tmorge@xxxxxxxxxxxxxxx]
Sent: Sunday, August 30, 1998 3:32 AM
To: KIMBOLEGSA@xxxxxxx
Cc: felixty@xxxxxxxxxxx; List@xxxxxxx; Omega
Subject: Re: Large Range days
Kim:
I think there is a distinction between 'large range' days and
overly-volatile
days, at least in my mind. For example, in the bond market, there are two
types
of days I like to trade: One is a classic runaway trend day and the other is
a
well-marked range day. If you add up all the tradeable area of the two days,
you
actually might find that the 'tradeable' area in each of those type of days
is
often the same. But there are also days that are just 'noisy' vaolatile.
These
are found in commodities where the pit traders know the off-floor traders
are
all long or short and the stops have accumulated--or in markets when news
shocks
the markets and the market whipsaws back and forth.
Large range days are great to trade. Overly-volatile days are great to walk
away
from. More traders should learn to 'cherry-pick' the conditions,
meaning...trade
when the conditions suit you; don't trade if the conditions don't suit you.
There'll always be another market--but once your capital runs out...aloha.
Best,
Tim Morge
KIMBOLEGSA@xxxxxxx wrote:
> Hasn't 'day trading' always been extremely difficult? Isn't volatility the
key
> to a 'day trader's' heart? I thought that it wasn't 'worth' daytrading in
the
> less volatile markets of the past. Like trying to day trade OJ now. Given
the
> volatility in the S&P, I've assumed that day trading is (relatively)
easier
> now than it's ever been. If volume remains high and therefore volatility
> continues, the pitfalls of various order placement methods will always be
a
> gut-wrenching experience. New ones will only offer a new variety of
stomach
> pains. In the end the amount 'they' slip you will only determine whether
or
> not you can 'scalp' which is only one type of day trading anyway.
>
> If my assumptions are incorrect then I had better get some tick data for
OJ?
>
> Rgds,
> Kim
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