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> Shane Wisdom wrote (re ct./month):
> > commish schedule:
> > 0-20 = 34.50
> > 21-50 = 29.50
> > 51-80 = 25.50
> > 80-100= 21.50
> > over 100= 19.00.
> > This is how I work it....it's very competitive if you shop around.
WOW. Is this typical, or an outlier?
This is just more evidence that the mini is absolutely THE BEST thing
that the industry has invented in years to take the little guy's
money. And it will, nice and slow, but with certainty, in the high
majority of cases.
This also a great place to apply risk of ruin calculations. Given the
slippage, commission, and tic size, against statistical range and
profit per big point of movement, a SUPER-performing system is needed
to insure against total bankruptcy. And if you have a system that is
that good, you would be foolish to trade the mini.
IMHO, the industry was just salivating at all the wannabes who
didn't have the money to trade the hi-margin spoos, but desparately
wanted to be a part of the "action". Wannabes LOVE the spoo, 'cause
it represents the hot action, instant effort-free riches, and
lifestyle which they believe awaits them as futures traders. And, of
course, the industry longs for the ones that did have the money,
traded the spoo a few times and blew out. The industry got $45 and
fees, while the customer lost $4K. That is not good. It is better for
the $4K to go to the industry.
So, the industry has filled a need that the market presented. <g>.
Anyone considering trading the mini-spoo with high commissions and
without an absolutely STELLAR edge and profit expectation should just
write a check to their favorite charity instead.
Cliff
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