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Tom and all,
You can disagree all you want but in this post you admitted to exactly what I
was referring to. If you pick up the phone and the market order fill is at a
price you did not expect, better or worse, that is noise and slippage and you
are not in control. Stops will get hit, if you use them, most likely where many
others exist, triggering allot of market orders and steak dinner for the floor
and allot of slippage for the trader. High anxiety trading is for those who seek
it and thrive on stress.
Traded the S&P full time almost three years. Watched it change radically in this
time as the daily range expanded almost 3 times what it was three years ago.
Moved to the more liquid orderly bond market, cut stress, make more money, no
slippage, able to limit risk to a couple of ticks, no major noise, filled where
I expect to be and added peace and joy to my daily work again.
There is no other market I can think of like the S&P where each day the programs
traders rule the day trading game. Each day there are on average 6 to 7 buy and
sell programs run here. This adds to the other problems. Since the Spoos is
used by most of the large program operators it is more subject to manipulation
than any market. Suppose some would say that they have tools indicators or a
physic sixth sense as to when another person is going to push the button and run
their program but what I do know is that no one who has this sort of ability,
only those who think they do. It would be hiding the truth not to disclose that
many floor traders and good private traders have either left trading totally or
gone on to greener pastures after the day to day getting whacked and the breath
holding encountered trading here. It is a good place for gun slingers and loose
cannons to get their thrills.
My discipline includes three main things, 1.) not to lose money 2.) limit my
risk 3.) make money. The S&P fails to meet the first two because there is not
enough control available there to any trader except the major program operators.
Good Trading,
JD
Tom Stein wrote:
> 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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