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same with me - over long time used to trade with modest stops of 2bps -
adopted to 5bps over months - now these days even 10bps wont help - you get
stopped and the trade reverses and you would be the winner.....no good these
days
rgds hans
> I think the volatility creates more work, more risk and more stress. The
> only market I day trade is the S&P and I want to just keep taking out
> modest chunks of 4-6 points which accumulate toward my monthly S&P point
> budget. Occasionally I take out 10-15 points and that's nice but it's not
> my primary game and I won't take on more than a couple of points risk for
> any run and I'll never take a big retracement. When I see Globex has
> gapped more than 10 points, I generally stand aside until I see which way
> the wind is blowing. My first priority is always preservation of capital
> and I'm not interested taking on risk to be a hero - better to go play
> golf and let things settle down. Ditto if I've exceeded my point budget
> for the day.
>
> Earl
>
> -----Original Message-----
> From: Timothy Morge <tmorge@xxxxxxxxxxxxxxx>
> To: FelixTY <FelixTY@xxxxxxxxxxx>
> Cc: Trade Jack <trade_jack@xxxxxxxxx>; Omega-list@xxxxxxxxxx
> <Omega-list@xxxxxxxxxx>
> Date: Thursday, October 08, 1998 8:54 PM
> Subject: Re: Handling excessive volatility
>
>
> >The problem is that many traders feel they 'need' to be in every trade,
> they
> >'need' to try to catch every move. As a trader, you don't have to catch
> >the
> big
> >move down and then try to catch the big move up. For example, if you are
> short
> >S&Ps and you got short this week, you probably were not at a loss today.
> >If
> you
> >have a short term perspective, at one point todday you had at least 50
> >S&P
> big
> >figures in profit. If you weren't short for a longer-term trade, you
> >could
> have
> >set a reasonable profit target and gotten out at a nice profit. You don't
> 'need'
> >to get long today. If you make 30 or 40 SP big points in a day, give it a
> rest.
> >Take a breather. Get some perspective.
> >
> >I think more damage is done to accounts and more poor trading habits are
> >revealed by traders that overtrade. If you have a commodity account
> >because
> you
> >'have' to be in the market all the time, you are addicted, not trading.
>
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