[Fwd: FUTR: S&P contracts, 1 vs 10, any differece?]

[Troy Kelley <tkelley@xxxxxxx>]

> --- Begin Message ---
> To: realtraders@xxxxxxxxxxxxxx
> Subject: FUTR: S&P contracts, 1 vs 10, any differece?
> From: Troy Kelley <tkelley@xxxxxxx>
> Date: Sun, 19 Jul 1998 19:44:34 -0700
> Organization: TK associates
> References: <199807172303.QAA21585@xxxxxxxxxxxxx>
>
> traders,
>
> I have been trading 1 or 2 S&P contracts using LeoWeb software and I have been fairly 
> successful.  Mainly because of all the help I have gotten from this list, especially 
> from Pete E and Bob R. (Hey Bob, you should really think about trading the e-mini 
> instead of those OEX options, then you don't have to worry about time decay and all the 
> other problems with option prices that put the buyer in a bad position)
>
> Anyway, the only way I can make more money on the S&P is by either trading more often, 
> or trading more contracts once my accounts gets larger.
>
> The question I have though is whether I have to worry about speed of exectution when 
> trading larger numbers of S&P contracts. Is it harder to trade say, 5 contracts as 
> opposed to 1 or 2, in terms of execution speed for at-the-market trades? At what point 
> do I start really running into trouble with exectutions, 10, 20 contracts? I have had a 
> few 2 contract trades come back with 1 tick differences in the fills, but one tick 
> usually doesn't bother me too much.
>
> Also, has anyone heard about stops on the Mini S&P? I am guessing now I can position 
> trade the e-Mini, and still sleep at night if I have a stop in place? I suppose it could 
> still move limit up/down however?
>
> BTW, my advice to new day traders is to sit and watch the market for a long time without 
> making trades, or maybe just making paper trades.  If you do paper trade, you have to be 
> extremely strict with yourself, and not cut yourself any slack. You need good estimates 
> about your fills and exectution speeds. I found it helpful. I actually lost money paper 
> trading. Many people say that no one ever looses money paper trading and I could see how 
> that might happen, but if you are disiplined and strict with yourself, paper trading can 
> have some benefits.  However when real money hits the trade, your stomach can tell the 
> difference.  Anyway, watching the market really helps.  I mean sit and watch every tick, 
> and don't do anything else for a few hours at a time. I sit and watch every tick using 1 
> min and 5 min bars, and only when I spent the time watching the market move through the 
> day, and developing an intuitive sence about the market, did my trading improve.  This 
> took a long time, but it really helped.
>
> Troy
>
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> --- End Message ---