Don't let anyone trap you into thinking that their way of "trading" is the only way it can be done (especially if that certain person deems charts, futures, and nasdaq stocks as untradable -- and asks you for $250!! sigh!! ). It's most likely that person's view is just a manifestation of his own limitations. Whoever said "those who can't do, teach" must have been in the business.
I spend a lot of time trying to help people on this board, and share a heck of a lot more than I have seen from anyone else who actually does well. I'm not upset or even surprised by the negative comments, but let me say this. Trading is a business, much like any other, and there are those who can help new people and those who cannot. We are proud of our trading firm and our group of very successful traders, and we don't "need" to help anyone, ever, even in our school. Do you people really think I'm concerned about the lousy $1,000 training fee. You would be amazed at how many people wish they weren't "penny wise" when it comes to learning how to trade properly. We don't go into "systems" or software or books and tapes, my brother and I take some time out of our busy schedules to really help people, with reality, and those that take training will outperform those who don't (I have great stats on that). We also work 14 days when we teach at the local colleges, and we don't profit at all from that...and it's hardly a "recruiting ground".... I'm happy to help on anything, and I hate to see people lose thousands when they don't have to due to simply not understanding the game. Most traders have a very limited understanding of what trading is all about. We have good traders on this board, many of whom could use some help, many who won't accept it. I know that if you're too 'headstrong" you won't do as well as those willing to learn. Our Million dollar traders come back for "continuing education" a couple of times a year....to learn new things...no big deal... Back to work!! If someone wants to send an PM, I will go into the PREM/Disc a little bit for them. Don
OK...here try this. Take spx (spot) add FV (fair value for that day) to it. You get a number. This imaginary line is there all day, wherever the spot price goes...and this is where the Futures "should" be trading. Why would they trade above or below FV?? Well, they do trade above and below FV, for short periods of time...during these time frames the traders on the CME floor, and other places, will hedge their positions by buy stocks or selling stocks in unison. This has a direct effect on the market for a short time. Very basic, very simple, and one of the primary things you need to lookat before buying or selling. There are exceptions when the spot leads the futures (outside news etc. can cause a lag sometimes), but rarely do they. The futures ARE the leading indicator. Hope this helps.... Don
Thanks Don, That was about as good and succinct an explanation as I have ever seen on any subject here. Makes it really clear. The check's in the mail
Monday......... I was out of sync all day.. I Had tweaked my opening orders form over the weekend, and on the opening I got 3 really fast fills, all short. I thought that maybe I had goofed something up and was about to get 20 - 30 fills :eek: So I quickly canceled all the rest of my open orders. Then I couldn't pull the trigger on the SPY's when the opportunity presented itself because I simply didn't believe that "this one is really it" Here are the open orders charts and trade log (CST times)
You know it's funny, "Tony" that with all the posts I have here (most are trying to help people) that I get grief from a "vocal minority" at almost every turn....so thanks for the nice words!! Don