Absolutely! I didn't know Oz's book, but my rule is 25% of capital as absolute maximum for scalping. Also, with many particular stocks (internet stocks like NTES, SOHU - great for scalping because of less experienced DT's / MM's), I have a limit of $20,000-$50,000 per trade, in order to avoid liquidity issues. If you trade INTC or MSFT, of course it doesn't matter. But who would? There's no point in maxing out your account for scalping, anyway - I generally have 5% liquidity, 70% in day trades / swings and 20-25% in scalps, which makes a good balance for me. - However, the scalping, although less than 1/4 equity, makes me more money than the day/swing positions many a time! It's definitely worth looking at for an experienced trader. Maybe it's a specific NYSE problem? I don't actually scalp NYSE - Is it any good for scalping? I mean, you don't get the sort of panic volatility that you would get with nasdaq due to its lightning fast & automatic execution, would you? Correct me if I'm wrong. ~Scientist
Your words on golden scales. I know a lot more unhappy $-rich people than happy ones. What's the point in being loaded if you're not happy? What's the point in being loaded anyway? ~Scientist
Anybody know the feeling of living in a golden cage? That's how i felt in my corporate high-profile job. At a point in time i decided to give it all up. i didn't have any clue what i was going to do for a living back then, but i knew i couldn't take it anymore. When i finally ran into the e-mini's i was as poor as a church rat. i wasn't far from being homeless, so i had no other choice than grind it out. now i can start thinking of becoming rich.
In my opinion, one can get monetarily rich (at least $1 million in the bank over and above retirement accounts) without taking extraordinary risks if your living expenses are reasonable and your trading is consistently profitable. I think this can be done with either stocks or futures but given the additional leverage it would be easier to do with futures.
Marketsurfer, I don't know the answer to your question, but I have heard it said that the FASTEST way to make a small fortune trading is to start with a large fortune. Regards, Thunderdog
My first year I traded to get rich, Now that I am smarter, I just try to grind out a living one trade at a time.
lol, yes, ramen. oriental flavor is my fave, although once i saw chicken curry and it rocked, but then i never saw it again. recommend adding an egg as you cook it. lovely.