carlp- got to thread "March Trading Journals" also you can check Hitman's homepage...click on his name and you'll see the link. Just got back from the bookstore and read S&C mag...letter from Hitman to Don Bright about pairs trading!
***I would be willing to bet that I lost less money in my 4 1/2 yr learning curve than in the above 3 1/2 months.*** Err, I was down $4500 at my lowest point. ***Because you do not understand and benefit from the leverage?*** Because leverage can kill a newbies faster than he can say ouch? ***The futures market environment is esentually the same today,*** If you are referring to the commodity market, I have zero experience in that and I can not say a word about it. But if you are referring to S&P/NAZ, I don't know what hell are you smoking? ***I can short 10 times easier than you guys can. Don't have to worry if the broker has the stock I want to sell! And no uptick!*** Ever heard of bullets? Sure, they cost money, but the whole concept of bullets is to be able to short something when most other players can't. I mean sure you can short QQQ's sans uptick, but where is the edge in that if everyone else can do it at the same time? And you forgot something incredibly important about stocks versus futures. People who day trade stocks can look at futures as a very very powerful confirmation, people who day trade futures are always at the front line of every tick. The difficulty/risk is not even close. Uptick: ***Just got back from the bookstore and read S&C mag...letter from Hitman to Don Bright about pairs trading!*** WHAT?
Hitman- In the recent issue of Stocks and Commodities Magazine...there is a letter sent in to Don Bright's column and it's a question about pairs trading...it's signed by "Hitman"
Such hostility! Can't disagree without it? Maybe you ought to read the tag to your posts! I would have bet and lost - I lost about twice what you did. Will agree the leverage can hurt but, it can also help a lot faster also. Trading the S&P and the NAZ today, on a day basis is really no different today than 10 years ago. Actually it may be, in that there is more OI and liqiudity. Perhaps the economy or the fact that people are taking more out of, than putting into stocks has changed the index level. But trading S&R and intraday moves really doesn't change that much. Actually no I have not heard of bullets, but it sounds like more cost to a trade, which I have no need to worry about. And I guess I would rather be in the front than following I can see better that way! If you took my first post as a critisism of you or what you do, I would have to say that was your perception; and was not intended to be such. When I read you post in your journal I do not see trading stocks as easier than futures therefore I would stick by my idea of trading futures for anybody who really want to daytrade. The best to yo in your trading!
cdgtrader, I agree with Gene in that market making training is very useful. I live in Tucson and traded at the CBOE email me at dagve7@hotmail.com if I can help out.
Thug Life- Yes I've seen "Boiler Room" 2x...and I knew the scripts word for word because the firm that the movie was based on was from Long Island, and thats where I worked.....we actually had guys at our firm that came over from the other when the FBI raided them.
Personally I think you just really have to ask yourself if you can pay the price.. whatever it may be. I had to literally dig holes for three years while completing a degree in mathematics by distance learning, just to scrape together money to start. If you want something badly enough, you can make it happen And would you want to get to sixty and not have tried??? Good luck I say, life is short!
This is a copy of some advice I gave to "Nick" a while back...you may find it useful. (he was looking for more of a banking type trading position, but you'll get the idea, and he had to deal with some attitude concerns which I don't see that you have)... "" Your desire does show through, and I will refer to one of my first attempts at offering a bit of advice. Go to the top 5 banking or trading institutions that you envision as having the type of trader that you want to become. Put on your best behaviour (British spelling intentional), look around a while before really looking for employment. Find someone, anyone, who you think will answer a question, any question, and start a conversation. Now...this may be tough for you....at first....but let the person talk (even if this person knows less than you do about trading, banking, forex, whatever, let them talk). By making some clerk, assistant trader, a runner, or even a secretary, feel that you are honestly interested in what they have to say...you will accomplish much more than showing off what you know or think you know. Resist the temptation of correcting them, throwing buzz words around, or name dropping....heck, make a friend or two...have a beer or cup of coffee (tea, whatever)...and who knows, you might just enjoy their company....open a door or two, and find that by being an "honest" inquisitor (without the brashness) that you may be "offered" a way to the "inside." This is how it has been done on stock exchange floors for decades, and in trading firms now. Don't do it because you're "scamming" people, try it because it makes sense...."pay it forward" -- show your good side, who knows what may happen... If you get to the next stage, I can offer you some practical, detailed scenerios that may be of some help to you. Good Luck!!
Don, many thanks for the reply, nice to know I may be at least on the right track.... What is your advice for taking the next step? The big problem I feel I have is that I have a less than "standard" educational background, I can tell you it is a big problem to many British Institutions. I am now reaching a turning point, I am a trader of oil products but I am burning to get in to professional derivatives trading. Will a good record of profits in a physical trading enviroment, plus a healthy dose of private account experience, count for anything?