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Norm Peterson questioned the profitability of SOES trading.
I've been SOES trading an account for two years with little to show for it
except that it enhances my day trading and position trading account which
does quite well. My position trading relys heavily on technical analysis.
SOES trading typically is very short term momentum trading skimming 1/8ths
or more with dozens of round trips a day. My response is if you are not
extremely aggressive and a top notch trader you should not even think about
it. SOES trading may well be a dead fad.
The new rules implemented by the NASD have taken away the preferential
order fills and replaced them with garbage fractional fills which add to
the commissions and administrative nitemares...by design. Also, a new 10
second delay on cancellation of SelectNet orders is a real killer and costs
me at least $1000/day.
I've developed a short term trading strategy for playing the "fallen
angels" using some of the elements of SOES trading and position trading
using market timing (Nature's Pulse, Elliot Wave) and Fibonacci Price
Projections. I will address this in a future memo.
Jack Hutchison
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