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Kim,
There are things you can do to minimize this potential of getting bad
slippgae. There is a way to anticipate! And that's what trading is all
about anyway -- anticipating.
If, going into a day your are anticipating (use NR7's/Pivot-Sell setups,
etc) the potential for a large move, then go in with a defensive stance.
Enter in quiet periods, a few minutes after the open or whatever. I think
people tend to blow these things out of porportion. People will tell you
how bad they got screwed but what they won't tell you is how they entered --
no context. And this makes all the difference in the world.
Yes it's true there were more times when slippage was huge in the S+P on
Thurs but then there were also times when it wasn't. Certainly there were
situations where you could have gotten in and paid normal slippage Thurs,
Fri, whnever.
IF YOU'RE A DISCRETIONARY TRADER THEN YOU HAVE A HELLUVA LOT MORE CONTROL
OVER THIS. SYSTEM TRADERS HAVE LESS.
Again, breakout systems will always pay more slippage. Reversal methods
will pay less. I don't agree that you "just have to take it." The best
offense is a good defense. Find ways to go around the problem and you can
still make the 10:00AM tee time.
Brian.
-----Original Message-----
From: KIMBOLEGSA@xxxxxxx [mailto:KIMBOLEGSA@xxxxxxx]
Sent: Sunday, August 30, 1998 11:22 AM
To: bmassey@xxxxxxxxxx
Cc: List@xxxxxxx; Omega
Subject: Re: Large Range days
In a message dated 98-08-30 13:42:55 EDT, you write:
<< 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). >>
I think that this is what N.H. was getting at the other day. That is, how do
you know it's a day to play golf before x# of trades, x# of losses and
suffering huge slippage?
I have just accepted that there is no way of knowing and I just have to eat
it
when it happens, adjust my strategy accordingly or book a tee time. Although
I
did live in hope that someone might have an answer.
Then after all that, your golf goes south too.
Rgds,
Kim.
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