Is trading like gambling ??

Discussion in 'Trading' started by Frenchy, Nov 18, 2005.

  1. where do you live ES??? i'll buy you a beer to hear your spiel on leverage :)
     
    #51     Nov 22, 2005
  2. Denver, CO.

    Answer is my Dealer/Marketmaker guarantees in writing that I will never have a negative balance!

    I'll have two beers thank you...:)


     
    #52     Nov 22, 2005
  3. A slot machine will not allow a negative balance either.
     
    #53     Nov 22, 2005
  4. But does it pay YOU interest while you use it?


     
    #54     Nov 22, 2005
  5. Yes actually in the form of house comps.

    Without addressing your specific case which I know you can't wait to bring up, the fact you can't below zero in and of itself does not make something not gambling.
     
    #55     Nov 22, 2005
  6. Did I say remove gambling...re-read

    Actually in leverage I can remove ALL risk. ask me how....Careful, gnome had to buy me a beer...


     
    #56     Nov 22, 2005
  7. That's what this thread is about

    I don't want to know - how much is it going to cost me for you to not post about it?
     
    #57     Nov 22, 2005
  8. no beer for you...


     
    #58     Nov 22, 2005

  9. I don't understand.. your dealer/marketmaker doesn't let you have a negative balance.. but is that because s/he will liquidate your assets when a net liquidation of 0 is reached?


    also, what kind of interest rates are we talking about.. the 4% money market type interest rates?
     
    #59     Nov 22, 2005
  10. nope..... positive interest carry on the leveraged (not even your money) amounts....yes liquidation can occur..

    But here is an example anyways for you naysayers....

    go long AUD/JPY for example from 87.60....(its in the triple digit APR's)

    it can only go to zero....you just defined infinity....

    If it goes long grid your way through it taking TP's, until you find the top....then size your trade to last until the bottom...what the heck average down if your real good with math and geometric progression

    I will add one more thought...pull you original stake out...and trade with house money that can never get you negative again.

    I will have a large beer...thank you.

    Michael B.


     
    #60     Nov 22, 2005