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Troy Kelley wrote:
> Traders,
>
> I am about to start trading the S&P within a few weeks. I have been
> paper trading, and I have been pleased with the results so far. Two
> questions for you experienced S&P traders.
>
> How many S&P trades during the day would be too many?
> NW: Less is more.
>
> I am thinking that I just want to catch the big morning swings and big
> afternoon swings, which would be about 4 trades max per day. But I have
> heard of some experienced traders taking 7 to 8 trades in a day.
>
> Do you trade during the lunch time lull from 11:30 to 1:30?
> NW: I wish I could get back all the money I dontated trying to trade
> during the lunch hour. This is when the market is most likely to waffle
> and any break outs don't follow thru. Also liquidity is usually less so
> you may get hurt on your fills if you use stops or market orders. .
> My system seems to work well during this time frame, but the moves tend
> to be pretty small, so why bother? Or is the leverage enough on the S&P
> that even if you catch 3/4ths of a point it is worth it.
> NW: You would trade for 75 cents? Not me! That's like offering cheap
> auto insurance to a driver with a long DUI record. Unless I think I can
> make at least 600 points in S&Ps, I am not interested in daytrading it.
> Remember, S&Ps are like a drunk driver and you are trying to get paid for
> taking the risk of having to pay for its craziness. Unless on your
> winning trades you make more than enough to compensate for its
> volatility, you will eventually go broke.
Lastly, I think the less you trade the more you'll make, you'll have
less stress, and hence you will enjoy it more. Remember that trading is
not a 9 to 5 grunt job where you have to show up everyday and trade. You
are not paid based on the number of trades you do. On the contrary, it is
closer to the truth that you are paid based on how well you can
discrimately select trades via passing up about 90% of possible trades.
The most obvious difference between begginers and veteren trades is that
the vets know when not to trade and feel no compulsion to trade when the
opportunity is not just right.
Good Luck!
>
Norman
> Thanks
> Troy
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