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hi bill
I assume that u are using DBC, are u happy with them,
I use them also, but I know we are missing ticks, I did some comparing
with bmi, future source, and in the spoos, min 1000 ticks dif,
and 300 in the bonds, on normal days, this doesn't bother u??
goodtrading/TED
----- Original Message -----
From: T-Bondtrader <t-bondtrader@xxxxxxxxxxxxx>
To: ted stampeen <tedco@xxxxxxxxxxxxxxxx>; RealTraders Discussion
<realtraders@xxxxxxxxxxxx>; G. Dunn <gjbkdunn@xxxxxxxxxxx>
Sent: jeudi, 12. août 1999 18:53
Subject: Re: Day Trading Report - opinion
> Ted Stampeen wrote:
>
> >people should not trade, or try anything entrepreneurial period if they
> >don't understand the risk, daytrading in my opinion, is more viable , if
> one is starting out with less
> >than 10k, one may not get rich, but one can make a living,
>
> >TRADE LIQUID MARKETS, by any vendor selling their wares, this should be
> the
> >first thing in starting out, then one can take it from there, least when
> wrong one
> >can get the hell out, nothing like being on the wrong side of a lock
limit
> move for days on end.
>
>
> I agree totally with what you have said, but let me add a couple of
points,
> which will show why I have found myself only trading the T-Bonds.
>
> You certainly need a liquidity, first and foremost. You cannot safely dip
> in and out of a market all day unless there is excellent liquidity. You
> need to enter and exit when the market is telling you that it is
> appropriate, so you need to do it immediately and know that, regardless of
> the time of day you will get filled more or less at the price you see on
> the screen.
>
> But just a dangerous as illiquid markets are those that have high
> volatility. Surviving day traders on the S&P are a lot less than one
> might imagine. The sometimes frightful slippage and terrifyingly fast
> markets can be a real killer. Even on fairly ordinary days, the bid/ask
> spread can be a great as a swing trade on bonds - not funny. Sure, you
> will hear the stories of the guys who cleaned up, but the unsung dead are
a
> great deal more. In England, the illiquidity of the Footsie combined
with
> its volatility and often large slippage, has made many people very glad
> that DBC can send over the T-Bonds from Chicago at an affordable
> price...!!!!!
>
> For me, the T-Bonds has much to be commended. Very, very liquid with
> around a half a million contracts a day most days and over a million on
big
> report days. It moves, as I have described it, "with a measured tread"
at
> the times that you should be trading it and the bid/ask spread is rarely
> more than a single tick. Most times, you get the price you want with a
> limit order.
>
> For a day trader there is no worry of what the market is doing overnight
> and you are not going to get a margin call, if you have the right capital
> to trade an average range of less than a thousand dollars a day per
> contract. Within reason, you can put on as many contracts as you like
and
> the market will not even make a blip.
>
> Once you get a feel for this market, you will be surprised at how readable
> it is. Now that does not mean that you can make money easily, but, given
> a decent approach to money management, you can start to put the odds in
> your favour and that is what day trading is all about. Conserving capital
> is the name of the game, if you want to trade for a living and it is
> absolutely essential that you have a very liquid market to do that.
> Without a satellite dish and the T-Bonds from Chicago, with a time
> difference wonderfully in our favour, no wonder some of us here in England
> are rather more pro our special relationship with the USA, than Europe and
> its down the tubes Euro!
>
>
> The above average sized Inside Day trade today has not done much of a
> favour to the North, but if the wedge can form, rather than a fluttering
> pennant, we could get a break to the South yet.
>
> Happy day trading...
>
> Bill Eykyn
> www.t-bondtrader.com
>
>
>
>
>
>
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