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Gary Smith is a credible trader and author of the book "Live the Dream,
By Profitably Day Trading Stock Futures"
Re: Living the dream/ gary smith
Author: Gary Smith
Email: hiyield@xxxxxxxxxxxx
Date: 1999/01/17
Forums: misc.invest.futures
more headers
Rick, sorry for the confusion about saying I trade funds just as I would
futures. The money for me now is not in the intraday swings but two to
three days out and more. Regardless of whether I'm trading futures or
funds, I'm still looking for the best buy and sell points, it's just
now I
prefer to do it end of day instead of intraday. The only times I now
trade
futures intraday are when I'm 100% in cash in my funds.
I posted in another newsgroup that I don't and can't trade funds
intraday.
Too often than not, I've seen intraday moves where I would have taken
action had I the chance where no action should have been taken.
End of day trading makes more sense to me because it eliminates the
emotions of intraday trading. I am not exaggerating one bit when I say
my
account is hundreds of thousands of dollars to the better because I went
to
end of day trading. I feel a bit hypocritical having an old book out
there
about daytrading the stock futures, yet with most of my present trading
now
being end of day. My trading has evolved as my account has grown. *But
if
I were starting over again with limited capital, I would be right back
in
the thick of intraday trading of the stock futures.* So I guess that
doesn't make me such a hypocrite.
Gary
The Prognosticator <Profit@xxxxxxxxxxxxxxxxxxx> wrote in article
<77t9n1$aq7@xxxxxxxxxxxxxxxxxxxxxx>...
> Gary,
>
> Not long ago you mentioned the mutual funds you traded. Obviously you
trade mf's that allow funds to be moved in and out anytime during the
day.
>What mf's were these? The Rydex funds I was trading limited my action
to
30 minutes till closing, with funds only moving at the close. This has
me
> sitting through moves I don't care to.
> Thanks.
> > :)
> rick
>
>
>
> Gary Smith wrote in message <01be4240$a04b9280$4dda9ad0@xxxxxxx>...
> >
> >Thanks for your nice comments. The filters for the mechanical
systems
in the book need to be adjusted not just for volatility, but the
doubling
in price of the S&P over the past four years. Although the concepts and
lessons on how I read the tape are still valid in that book, I have made
some drastic changes in how I trade futures. For instance, I primarily
trade the Nasdaq 100 futures contract. Much
bettertrender and tech is where the action has been the past several
years.
Also, I am much more likely to initiate trades during the Death Zone,now
defined as 1:30 to 2:30 Eastern Time whereas before I seldom put on a
tradeafter 12:00. Now when I trade futures, I look more at the
divergences
between the Dow, cash S&P, and the Nasdaq when considering the intraday
direction of the market. Although the book has mechanical methods for
those so inclined, I made no bones in the book about the fact that I'm
totally opposed to a mechanical trading approach. Lastly, ther's a
thread
a week or so ago where I mentioned that most of my trading now is with
mutual funds. I trade them just as I would futures.
That book was not one of my prouder moments in life. The title and
price chosen by the publisher still drive me crazy. I can't do much
about the
title, but effective in 1999, I gave up all future royalties (not the
wisest business decisions on my part) with the understanding Reality
Based Trading Company would retail it for no more than $59.95.
> >Gary Smith
> >
> >JHemm <jhemm@xxxxxxx> wrote in article
> ><19990117103723.24024.00002419@xxxxxxxxxxxxxx>...
> >> Several years ago I purchased this book( and its update). While it
was extremely informative and helpful, I could not trade his methods
because of time constraints. I would like to try it out now, but
question whether
the current market volatility requires a total change in his methods and
parameters. I called Future Truths and they no longer follow any of
HIis systems because of the changes in the market. Any info would be
appreciated since Mr. Smith and his books were originally very valuable
resources.
Hi Seether,
Because I have a wider choice of market sectors to choose from in
trading
funds, I find them *far* (at least for me) more profitable and
enjoyable
than the futures. You can't beat the funds for their persistency of
trend.
However, as *trading* vehicles, I think funds are better suited for
those
with larger trading accounts. So I'm not suggesting those with small
accounts discard trading futures in favor of funds. Of course, some may
counter futures offer more leverage than funds. I certainly can't argue
with that. It's just I don't believe in leverage. As my account has
grown, one of my goals was to deleverage myself as much as possible.
Leverage is one of the primary reasons 98% of futures traders end up as
losers in their career. It's also one of the reasons a few make
fortunes. I
would rather make a fortune slow and steady than taking an inordinate
amount of risk trying to make it as fast as possible. There's a risk of
being too conservative or too aggressive in the trading game, I try to
take
the middle ground.
Gary Smith
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