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felixty@xxxxxxxxxxx wrote:
> Am not exactly into details because i just scan the account end of day..ok,for
> Monday's trading i will be specific and get more details.
>
> Since its daytrading, i don't see how "equity/capital" as in quote unquote in
> numbers.....as he is monitored by our president and auditor all session (as all
> our trading terminals are..) in general...on average be buys and sell a millon
> dollars worth of stocks per side (buy and sell). I don't see any capital
> involve as we are flat by end of day. Maybe we are more into thinking
> stomach/guts capital or what our brokerage how much rope they are giving him to
> play with..wel so far i think they can live with him doing around 1 million per
> side per day.
>
> This million is the total for the day usually spread in around 5-6 stocks (on
> avearge everyday (and are usually the most active stocks traded for the day as
> in daily volume)
> and of the 5-6 stocks he traded daily only one wl lose and very minimal as in
> 500-1000 dollars by end of the day....but the 4-5 other winners are all baggers
> of 2,000 to 4,000 each (on average). since i don't have access to our network
> right now...i will get the details for the coming monday...i hope he will be as
> consistent!! haha
>
> as said before...he usually losses his mostest at the first hour(around --1500
> dollars,but this itself is getting to be a rarity these past few days)..and he
> comes back fighting to profit by the close.
>
> so far from my observation his cut loss is one or two flucts from his purchase
> or short price...lets say he bought at 31 cents,he cuts at 30,29...thats the
> end of it..loss one rounf in boxing...a new round he can either be long or even
> short again...just punching up and down with the market flow all day at
> different prices..each round trip i think is independent and i think he
> mastered reversal also..when he is wrong he cut and reverse position and comes
> in big!
>
> by the end of the day..each stock he might have trade round trip 4-5 times
> per...and i can see the average of his end of day total buys at .3148 cent and
> selling at .3227 cents but at ten miilion shares per side...that small
> difference (w/c even i personall snorted at compared to mine) realy turns out
> very BIG!
>
> an important edge right now i realize is his computer being at the floor is the
> fastest execution terminal than the upstairs traders (our kiddos are networked
> upstairs) and me remote dial up dedicated terminal at home is even slower,but
> the difference is less than a second...but i think that small edge is quite
> significant..alsoi think he when he plans to buy or sell something...he already
> entered the price and quantity so that only one press of the enter key all
> needed to execute....like a cocked gun all the time,in the highest level of
> competition of skills and talents..even races...a mere difference of
> milleseconds differentiated the gold medalists from the silver and bronze
> competitors,so every bit of edge do help.
>
> i think he takes profit some or half when he is positive and ride the rest to
> the fullest
> will find out and talk with him next weekend if he is thinking of scalping in
> each trade or just always being conscious of his latest average intrday cost of
> long or short...and risk/manageing it all day long and making sure is longs on
> average is lower..even a wee bit than his average sell prices...
>
> well..of course wih his size he will always be monitoring the time of day as he
> had to exit by eod of day. by the way...at a fixed time of every session he
> goes out to smoke and pee for 10-15 minutes* usually leaving flat or as another
> trader to cut a specific position when a specific price is being done by the
> market.
>
> *thats a long time as our daily session only last 3 hours and 40 minutes...our
> ouder traders guys and girls usually hold them till closing time..haha or they
> go in mass just before open...
>
> okay..will put in details for the coming monday session..i hope he is
> consistent!! and continue the streak....
>
> am also quite busy (busybody) so am not sure can respond to everyone, will just
> post a summary of different people's queries to the list for each email i can
> post
>
>
Thanks, that is quite informative. I am amazed at the absolute razorthin margins.
As trading §1 in and out leaves a few thousands, I wonder what happens the day he
flunks out and remains cold or goes frozen on a string of misteps, that could
easily cost serveral tens or hundreds of thousands of dollars. Has this happened
already? How did he manage to get out of this? I presume this is to be compared
with pit locals on the CBOT, which I am just at the other end of the spectrum
though.
May be Ira can comment on this, would be interesting to dig the innerworkings
further.
Still wondering though how much equity one has to bring up to be in a position to
trade that way.
I smiled a lot at the distinct habits! Very professional, and quite the marks of
people who have thought their business out to the last detail. When mechanically
trading that's where we (should) all end up, each with our idiosyncrazies (or
however you spell that), that in the end are part of the edge.
Thanks again, and best to you,
Gwenn
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