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Before trading futures, I earned my living position trading stocks for 3-10
days. I've both day traded and position traded futures and see no conflict
between the two, nor do I see any reason to differentiate in categorizing
whether one earns a living doing so. I find two major differences between
day and position trading: tighter stops in day trading and more time to play
golf while position trading.
I entered my bond position intraday yesterday on the retest of the wedge
(GIF posted) looking for a day trade to 118. Didn't get there so snugged my
stop up to 117^14 into the last hour and decided to carry overnight because
the close looked ok and I felt confident about 118. Early this morning I
checked the overnight, snugged my stop to ^18 and was on the golf course by
the time bonds opened. On returning I noted the gap up and snugged my stop
again where I feel I am well positioned for Fed action not as bad as the
market has priced and covered to protect some profits if unfavorable. In any
case, baring a Fed cut in interest rates, I will be out of the market by the
close. Also had a long cattle which I exited on my return because my price
objective had been hit.
Bottom line, I tend to mix position trading and day trading techniques where
appropriate to optimize my entries and exits. What I won't do, except in
middle of winter, is sit on my monitor all day 5 days a week.
Earl
----- Original Message -----
From: T-Bondtrader <t-bondtrader@xxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Sent: Tuesday, May 18, 1999 6:02 AM
Subject: Re: T-Bonds: Living to Play, or Playing to Live?
> As this is the only instrument I trade, I am pleased to see some
discussion
> about the June contract. So far, most of it has centred around position
> play. Whether or not it has reached an EW number, or whatever, and
whether
> from that, the market will go up or down - short term, long term,
whatever.
>
> Clearly, there is also discussion on such fundamentals as the potential of
> an interest rate movement - as with the FOMC meeting today. As a result,
> each of the participants have come, I assume, to a decision as to what
they
> think the market is going to do - and then they are going to trade it.
> Yes?
>
> What I would really like to know is exactly how you guys trade, once you
> have come to your conclusions. As a day trader only, I do find this the
> interesting part. Do you enter the market on the open? After the opening
> range? When? Do you have to take the night session into account and
> could that alter your decision, anyway? As I see it, each bar is
basically
> a day, whereas for me each bar is in minutes.
>
> You must presumably have quite a drawdown ability and margin contentions
to
> consider - and trading with stops is a whole different ball game.
> Furthermore, I wonder how many use an actual mechanical system and how
that
> blends in with the technical analysis beforehand?
>
> It seems quite clear to me that with this longer term play, there are
bound
> to be all sorts of opinions, based on all manner of factors and that the
> best hope has to be to get in on a trend - and make it your friend to the
> end! The capital outlay to do this, on just a small number of contracts,
> must be quite considerable.
>
> >From this it would seem that positional players are clearly in a
different
> financial league to the day traders. I assume that it is more wealthy
> people playing with money set aside, rather than money set aside to
earning
> a living, and, hopefully become wealthy.
>
> Following from this, we have a set of people who are interested in other
> people's opinion of the market and where it might go (playing with money
> that, let us say, is 'not essential' to the family living), and another
> group of people, who do not want anyone's opinion on where the market
might
> go, but only need to know how to flow with the market during its daily
ebbs
> and flows and be able to act and react to these moves, profitably.
>
> So we have two totally different stances, requiring totally different
> information to help each type of player take money out of the market. One
> uses predictive tools, and feeds on other people's views as part of their
> decision making process, while the other cannot afford to rely on either -
> furthermore, the former has more ability to systemize their trading,
> whereas the latter trades at a speed which almost makes that impossible.
> I suspect that one makes more money, from more money, while the other
makes
> less with less, to earn a living.
>
> It is interesting, therefore, but not so surprising, that the discussion,
> so far as I can see, has centred around position players rather than day
> traders, which begs the obvious question...
>
> Are you living to play, or playing to live? The answer could be important
> to you, so ponder it while the market goes sideways waiting for Greenspan
> to decide...
>
>
> Bill Eykyn
> www.t-bondtrader.com
>
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