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I used to trade only limit orders, but really,
I think it it not worth it. It adds double stress
to trading. Your have to worry about your trading system
and your fills.
Now I make life easy. I intraday trade the big S&P,
and develop trading systems that give you a little
room, where you are going after at least 8 big points
on two contracts. Figuring being screwed for 2 points
per contract on slippage, you will make ~$3000 a trade on a
winning trade, which will average out to about $1000 a trade
with losses. Average two trades a day and you
will do ok. You'll make around $200,000 - $300,000
a year, but if you shop at garage sales and thrift
shops, you'll survive.
Turn your system off if the range is less than 5 points
at trade entry and the day's range is less than 10. Turn your
system off if the S&P is up or down over 25 because
not a lot of days are over 40 point moves. You'll short the
bottom and buy the top. I bounce trade between the trading
ranges, using a medium average filter to stay with the trend
and counter trend trade within it. This works real good,
except for days like Wednesday and Thursday where the market
does nothing, and then shoots off like a rocket in the wrong
direction (if its not in the direction I want, its the
wrong one - shouldn't there be a phone number you can
call and explain to somebody that the markets going
the wrong way and they said "Oh, you're right. Give me
a minute and I'll fix it", but then what are stops for.
This only happens about once a month but this week was weird.
Anyone else get caught with their pants down besides me?
If you phone in direct to floor, and do market orders,
you will get filled in less than a minute, and the
price is ~one big point in slippage. Maybe a little
less (.50) and maybe a little more (1.5) depending
on how the market is moving. This way you get
in and out when you want quick, no screwing around
checking for fills. I find there is alot less
swearing.
I'm no super-duper multi-billion dollar a day trader-grrrrrl,
with a trillion dollar swiss bank account, but I survive.
David
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