neke just wondering at what point do you think you will have issues scaling into and exiting postions? obviously your trading with a lot of capital especially when leveraged, just curious if you ever run into any problems trading larger postions than most people. thanks.
My automated strategies were done using Quotetracker API. That was in the hope of eventually replacing discretionary trades and the emotional flaws. However, there is still a lot that I accomplish by my discretion that cannot be automated. Not really. I believe I am not the only one with that much in a brokerage account. Having said that, I am looking at opening another account elsewhere next year. Normally, I am interested in the very liquid issues, trading $200million or more worth of shares for the day. At that level, liquidity is hardly a concern for my account size. For other cases, I am sure I judge the amount of liquidy vis a vis the amount I want to commit to the trade.
Hi, I was wondering how often you trade the index's like SPY? What pct of your trades. Just wondering because it seems like you prefer to trade volatility, news driven.. things like that. Don't you feel like you're flipping a coin when you're trading an index? Or are these the trades you consider to have no edge? Or are you using them for some sort of hedge?
Neke good job. I don't know whether you negociate your commission with Ameritrade already. you can call and lower it to $5. a few friends of mine who actively trade and have accout values over 100k get the deal. just call them ask it and you will get it. there is another over $5k profits for you, if you don't get that rate yet. again good job and looking forward to seeing ur great performance coming year.
Up to week before last, I made 90 SPY index trades and netted 34K, and 50 SPY option trades making 138K. So they do not constitute more than 15% of my overall trades. Much of those occurred during very volatile times in the market like we saw in September, October. While I believe the market (SPY) is much more efficient than individual stocks, I still think there are occasion where they present better than 50-50 predictability. We certainly saw a lot of momentum driven moves (on both sides) in the last several months which was much more predictable than 50-50, with dramatic end of day acceleration.
They actually called and lowered it to $7 (from 9.99), when I complained about some errorneous trade trigger, and gave another 200 free trades. But that is only the fixed part. The options still remain 75c/contract - I think that is where the big cost comes from.
Neke, call Ameritrade and show them how many views your journal gets, and ask how much they will pay you to put the word "Ameritrade" in each of your weekly posts. Neke, a year well played! All the best in 2009
Good job neke! Hope you have another good year like this. Keep us posted. Guys, don't try to nickel and dime your brokers. If you made 500K, giving 10K to your broker is not going to kill you. If these guys go out of business, we all have to trade through Wal-Mart.
Actually I gave ameritrade 64K, much of that being the options variable cost (75c/contract). So that is a 64:458K ratio. Big improvement from the 20:28K ratio at the end of the second quarter. Ideally the broker should not collect more than 10% of my gains.