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In a message dated 98-07-30 12:07:53 EDT, you write:
<< RTs:
I posted a question about capitalization earlier, which only one person
responded to. I am still interested in RTs opinion about capitilization and
general obstacles to be aware of heading into day or swing trading the S&P
and/or currencies. Does anyone in this forum trade this way? Any
information is appreciated.
Thanks,
PG
>>
Since nobody seems disposed to answer and the market is making me fall asleep
here (which means it will begin to rock as soon as I get into this), I will
tell you what I tell my clients.
To effectively daytrade the S&P/DOW you will need the below amounts to do so
effectively. Please note that these are MINIMUM amounts. You'd sleep alot
better
if you had TWICE the amounts listed below. Unfortunately, we all cant begin
trading with 50-100k accounts (which would be nice and increase your chance
for success)
# Contracts you wish to trade 1 2 3
Minimum $ to trade S&P 10,000 25,000 40,000
Minimum $ to trade S&P 5,000 12,000 17,500
How did I come up with those figures? Simple...observation of how folks trade
combined with exchange margins. I know there's lots of mathematical formulas
to figure out the above, but I cant be bothered....I'm a trader. not a math
theorist.
I try to keep things as simple as possible.
General obstacles? There are MANY. Most of them lie between your ears. (Thats
where ALL of my own personal trading demons lurk.)
You want my advice? Start out small, paper trade and mix a real trade in there
every now and then, just so you get that fun feeling in your gut. Stare at the
screen every day for months and months. Use a simple methodology to trade. The
simpler the better. Do these things and you will have a fair chance at making
money. Overtrade at the start, think you are smarter than the market....and
you will be annihilated.
Hope this helps, looks like things are perking up a bit here so I gotta
run.....
Peter
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