Registered: Aug 2009
07-27-12 04:38 AM
Quote from Wide Tailz:
Reeks of desperation. I can't see why any rational professional trader would use their entire account on a leveraged futures position, so lowering the margin rate will not induce them to add any more longs. They are constrained by risk, not margin.
But the suckers, on the other hand, who blow up accounts because of going all-in.... can now pile on a few more "cars".
These suckers are the last to the party.
This, in addition to the bear flag that broke down this week.
If it fails to exceed 138.2 before the next wave down, it will be setting up to be a glorious third wave breakout, on the short side!
I'm confused by this.
First, isn't this a futures trading journal? Are you arguing against using futures in a futures trading journal?
I also don't understand where you draw the conclusion that lower margin on futures contracts will "draw more suckers" ... that may or may not be true. Now correct me if I'm wrong, but lowering margin requirements would effect both long and short positions.. right? What if the people who are "piling on more cars" are doing so on the short side? The only conclusion I could see being drawn from lower margin requirements is that these markets will see more liquidity and volume which is pretty irrelevant, imo, to price direction.