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For me it's a simple answer.
I have taken various seminars on everything from options trading to S&P
futures trading and I understood the spoo trading the best.
I day-trade it, as you do the bonds, so I'm in cash each night. I do not
have to be concerned with option premium, or with companies reporting
bad earnings after the close. I trade using two computers from an office
in my home.
I concentrate on spoo trading to the exclusion of stock/option trading
because each stock has it's own "feel". Too many different issues to
watch. I might want to hedge a long in DELL with a short in
CPQ....whatever.
Trading the S&P I am either long, short, or flat. Period.
With respect to bonds, wheat, silver and so forth....I do not trade them
because of the KISS theory. I imagine one day I shall try, but if it
works why fix it.
I have a theory that there are certain times of the day where the spoos
have a tendancy to turn or accelerate in one direction or another.
shortly before the bond close for example, or at 12:30 CT going into 1.
I find that if I can correctly identify these turns then I may hop on
for a half hour or so and be finished for the rest of the day.
In any event, there is little emotion involved. Yesterday I was able to
get long just above the low...only because I estimated that the turn
should be coming during that hour. So, I dumped 1/4 of the position for
~3 points, one for 4, one for ~8, and finally bailed out of the last for
10. I had a feeling the high was not in, that it would rally all the way
into the close, but it was of no emotional significance to me that I
could have made more had I held the entire position all day.
In other words, the sense of magic it may have for others is not shared
by me. I've been there, done that, made money and lost it in other
arenas. Personally, were I like you and trading the bond and doing it
successfully I would not be looking at trading the spoos. The grass is
always greener and all that stuff.
So, in my long-winded way, I told you this;
1. I find the spoos simple to trade because they are simple for me to
understand.
2. I do not trade much of anything else because I either do not
understand them or they are too difficult for me.
As far as your bank account is concerned, I make a fair living just
trading 4 to 10 contracts a day. I would imagine $100,000 would be
necessary to control 10 contracts. I find it too difficult to trade less
than 4 and I would be nervous carrying a position over 10, I would
think. In any event, I was fortunate over the years to acquire fair
positions in "Blue Chip" stocks that I have a very good profit in, so
the emotional fear that could come with making a serious error is offset
by the fact that the possibility of such an error is not going to break
me.
--PJS
Bill Eykyn wrote:
>
> Hi all Spoo Traders!
>
> Would any of you care to share on this forum why it is that you trade the
> S&P 500 contract?
>
> What is the magic (and I mean outside the pit) that draws you to it? What
> are the pros and cons? What do you like about the market and what do you
> hate? Can you make a living out of day trading it from a computer or is it
> really only a pit trader or position trader's contract?
>
> While there are many who trade particular contracts or groups, like the
> grains, the currencies, the energy contracts, etc and, by the same token,
> some will day-trade and others position trade, etc, it does seem to me that
> the Spoo is Special - and I really would love to know why! It seems to me
> that those who trade the S&P pretty much concentrate on it and I can
> understand that. The sheer size and range of the contract must almost
> demand that.
>
> I know why I trade the Bonds. I also know why I trade the Bonds, only.
> There is also a very good reason why I only day-trade and never stay in
> overnight. For me, there a many more pros than there are cons and the
> reason I concentrate on it is purely for fiscal reasons. But there are
> many, many more Spoo traders on this forum than there are Bond traders and I
> should love to know the attraction.
>
> Is it just that I don't have the bank account, or that I want to keep my
> bank account. All I know is, that I have no desire to trade the S&P and I
> would love to hear why those that do, do...
>
> In anticipation or hope
>
> Bill
>
> Clearly
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