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Re: Daytrading: Bonds vs SNP



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Your examples show almost the same return IF you use the minimum
margin required by most houses...ie:50% of overnight.............

Bonds-Overnight $2700.....Day-$1350

S&P-Overnight $12,000...Day-$6,000

Just about a 4.5:1 ratio.....multiply your bond money by 4.5 and you
are pretty close......

Also, you are way overstating the 10 points available in 1 S&P
trade......Even IF you bought the open today and sold the close you
wouldn't have made 10.00...thus you are now into multiple trades to
extract 10 points out of the S&P....

Each person has the availability to find what's comfortable to
him/her......Day trading the S&P vs the Bonds is like the difference
between driving on a curved road on a clear day vs driving on a curved
road that is iced up......Day-trading T-Bonds allows one to look out
of the window and enjoy the scenery.....Day-trading the S&P's requires
hands on the wheel and eyes on the road.

To each his own.............


Tom Stein
comfut@xxxxxxx