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I must disagree with the statement:
"In the SAP( S&P) if you are a active trader it will cost you a small
fortune.This is no place for market orders unless you need to bail out of
the wrong way. The slippage and noise there is intolerable."
With all due respect to the person who wrote it....."slippage" and noise are
only intolerable based on a traders ability to overcome it.....I accept
"slippage" as a part of
my trading and because it tends to raise the anxiety level of trading....I
must decide
those markets where the risk of "slippage" outweighs the acceptable
risk/rewards of trading that particular market.
Unlike the author, "slippage" and "noise" in the S&P are tolerable to my
trading style......in fact, I find that when going to the market in the
S&P's....my best guess is,
that it, about evens itself out.....There have been times when I took
profits in a position and found that my exit was much better than when I
picked up the phone.....
"slippage" is a very large component of anxiety.....the key to both our
health and longevity in this business is lowering the anxiety level.....the
author of the above statement is doing the correct thing by identifying a
market where at this time "slippage" is intolerable to him, however, each
trader must decide for him/her self where this applies...it will be
different markets for different traders.
This was written in hopes of encouraging each trader to form his/her own
opinion regarding which markets he/she might be able to extract profits
from.
Tom Stein
comfut@xxxxxxx
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