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I'm not adverse to volatility, I'm simply adverse to increased risks
from illiquid markets which are too easily manipulated ... cocoa,
coffee, orange juice, precious metals, lumber, and a few of the lightly
traded grains come to mind. OOH, I have made extremely good money for
virtually no risk in some of these markets when the range tightens for
an extended period driving out the volatility ... good example includes
gold in Sep99 and Feb00. By comparison, one can see high volatility
(e.g. weather) in other markets, yet there is enough liquidity there to
be able to get in and out without getting creamed in the pit - beans
would be an example.
Others mileage may vary according to trading style and techniques
employed, however these markets are certainly not for newbies to futures
trading which was the original point of this thread
Earl
----- Original Message -----
From: <Scaletrade@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, June 24, 2000 10:59 PM
Subject: [RT] Re: Stocks and futures
> In a message dated 06/24/2000 5:16:09 AM Pacific Daylight Time,
> eadamy@xxxxxxxxxx writes:
>
> > Prime,
> > recent example is Cocoa. I know it's possible to hedge this kind of
risk
> > but that costs premium and the guys selling premium are the same
guys
> > running the market up and down. This is reason I avoid illiquid
markets
> > and NY pits.
>
> I bought cocoa this week when it went down, on a limit order. Sold it
when
> it went up, on a limit order. Bought it again when it went back down.
I'd
> like to see it keep going up, of course, since I'm long more than one
> contract, the rest from higher prices, but this sort of
> manipulation/oscillation is bread on the table, as Bill likes to say.
>
> Larry
>
>
>
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