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Earl,
I must respectfully disagree with some of your statments below. If one
takes small positions in futures, there is no reason one can not achieve a
diferisified porfolio with $25,000. I also think that most ag futures are
easier to trade than stocks, as the historical ranges tend to be much more
predictable. Additionally, I find the fills in futures to be faster and
better than stocks. On the other hand, I wouldn't recommend day trading most
commodities, but then again I wouldn't recommend day trading most stocks, as
I think it is a fool's paradise and a broker's dream.
Respectfully,
Norman
----- Original Message -----
From: "Earl Adamy" <eadamy@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, November 08, 2001 8:26 AM
Subject: Re: [RT] The SEC just regulated me out of a job........
> If there is one thing I harp on for new traders, it is adequate
> capitalization and maintaining a conservative risk per trade profile which
> will insure that a few bad trades do not bust the account. While an
account
> size of less than $25,000 may be adequate for some modest trading in
stocks,
> it is not adequate for trading futures unless one has a pool of
substantial
> liquid assets which can be immediately re-deployed to the futures account.
> Secondly, the prudent trader will risk no more than 2-3% of account size
per
> trade ... and one must keep in mind that sudden moves combined with high
> leverage in futures can blow a trade right through the stops and blow out
> the account. Just recently bond traders were treated to a near
> instantaneous $2,500 per contract move which blew through stops.
>
> Finally, I would mention that trading stocks is a simpler task than
trading
> futures. While the emini are most similar to stocks, agricultural and
> industrial futures contracts are an entirely different animal and are not
as
> well regulated as stocks ... in many cases the pit trading is stacked
> heavily against small traders.
>
> Earl
>
> ----- Original Message -----
> From: "Norman Winski" <nwinski@xxxxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Wednesday, November 07, 2001 5:55 PM
> Subject: Re: [RT] The SEC just regulated me out of a job........
>
>
> Sean,
>
> I think you are right, you should go with trading the E-Minis. Of
course,
> if you don't like working so hard, I would just buy futures on some of
those
> rediculously depressed commodities that on any any thought of economic
> recovery will sprint at least 20-40%.
> I have been extolling the virtures of Coffee, Cotton, Copper, Soybeans,
> Silver, & Sugar on this and other lists for several weeks. For example,
> since the low about two weeks ago, Dec. Cotton has rallied from 2820 to
3223
> = over $2,000. Most of these markets have margin requitements that are
> between $1,000 - $1,500. Of course, I don't recommend using all equity
for
> margin, in fact I try to maintain a 5 to 1 ratio of equity to margin. When
I
> get very agressive, I may let this ratio drop to 3 to 1. Anyway, there
are
> still some great deals out there and all you have to do is put on the
> positions and wait. Some of these markets are at 30-40 year price lows.
If
> you buy them now, and they only get back to their old support levels, you
> will make lots of money without much work or spending a fortune for
> brokerage commissions.
>
> Of course past results is no guarantee of future performance. . This
type
> of investment may not be appropriate for your retirement account, your
kid's
> college fund, or Aunt Tillie in Toledo's bingo fund. You can lose
> everything you have ever had or will ever hope to have trading futures or
> stocks, especially if you follow my advice and everyone stops eating,
> drinking coffee, using electronics, or stops using clothing or blankets.
>
> Best Wishes,
>
> Norman
>
> ----- Original Message -----
> From: Sean Cassidy
> To: realtraders@xxxxxxxxxxxxxxx
> Sent: Wednesday, November 07, 2001 2:10 PM
> Subject: [RT] The SEC just regulated me out of a job........
>
>
> I was just informed by my broker that I am fortunate enough to meet the
> SECs rewuirements as a "Day Trader". I have been essentially swing trading
a
> small account because, well, I dont have enough cash to open a big
account.
> I tend to get out of my losers very quickly and hold on to my winners for
2
> or more days. I thought thats what trading was, cut your losses, let your
> winners run. For example I had 2 longs and 1 short going into yesterdays
> rate cut. My short (INTU) was stopped out for a $1.30 loser but one of my
> longs (WEBX) made me $3.50 and another (EBAY) is currently up about $2.
This
> of course makes me a day trader although i held WEBX for 3 days and have
had
> EBAY for 2 and counting. The reason is that about 5 times a week a trade
> goes bad and I have to get out in the same day. My plan is working very
> well, I am up about 5 points this week already and make at least a little
> money almost every week. But because I do not have $25000 the SEC has
forced
> my broker to shut down my account for a week. I am currently averaging a
> return of about 10 -13%....per month. I think I know the answer to this
but
> outside of finding a loan shark.........is there anything I can do about
> this?
>
> By the way......I am allowed to trade futures and/or options. I think I
am
> about 2 for 20 on options trades over the years and accept the fact that,
at
> this point, I just dont have enough knowledge to make money with them. Or
I
> could trade the E MIni S&P, with its margin of 10:1...that is obviously
much
> less risky than doing 50 to 100 share lots of a stock with a proven method
> (sarcasm).
>
> Any help would be appreciated...or maybe I just needed to vent a
> little....looks like I am shut down after making 10% most months. I am now
> going to look for my man Huggy Bear to see if I can get one of those 88%
> (per month) easy payment loans.
>
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>
>
>
>
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>
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