I find that most traders struggle when trading in multiple methods. The problem is that day trading and swing/position trading use different analytical parameters and even vary in tool sets. Only very experienced traders can move between paradigms. New traders struggle enough trying to find a method that is a good fit for their personality and financial condition. The confusion of more than one style prevents finding one that is comfortable. Thanks, Slim
It's not the NASDAQ that inforces NASD RULE 2520. It's the brokerage houses. If you make more than 3 day trades in a week, with US broker, you will meet the requirements of a "pattern day trader". And they should inforce it no matter where you live. No one is forcing you to trade on margin. Because it is a margin account doesnt mean you have to trade it larger than you would if it were a cash account. Use 25K in buying power instead of the 100K. Then it is NOT riskier. Slim
What tips or ideas do you have for developing a strategy or "finding an edge"? If a trader was just starting out, what would they first do to develop a strategy? Thanks.
Aloha Mr. Miller, I enjoyed your concert in Toledo. I have found many Futures traders learn the trade and sometimes pick up substantial profits early on. Not long later, they may not be trading for market related, or personal reasons. When many traders return to trading, they seem to have success with spreads. This may be because they will accept consistent profits with occasional windfalls, instead of looking for the brass ring on every trade. Or maybe because of some personality change that took place, trying to return to the market. I do not know. In any case returning traders seem to enjoy the success, they have, holding winning portfolios month after month. This is a growing segment of Futures traders and these questions more or less come from that group. How do you anticipate slippage? Some people say you should only trade with 1% of your trading capital per contract. What I want to know is where did they get the trading capital in the first place? And if they were able to accumulate that much not in the market why would they want to risk it on commodities? Where does a spread have to go to show you you're wrong? Here is the answer, what was the question? Can I trade currency spreads with IB? Which book helped you most in learning the practical aspects of spread trading? < Why would anyone buy an SUV? Do you use Stochastics and Bollinger Bands on spreads? What kind of charting service / software and technical analysis is required for following a spread trade? < What is high correlation, and what does this have to do with trading spreads? Can I trade (Seasonal) calendar spreads on the e-minis? Why do spreads require lower margins? Which broker do you use for spread trading? Can you comment on the âConflict of Interest," between traders and brokers and what effect this has on brokers giving trading advise to new traders? What effect should turnover have on an investors choice of a fund? If you were running funds, in semi-illiquid markets, would you as a fund manager prefer to be trading closed-end or open-ended funds? What effect did Reminiscences have on your understanding of âThe Game,â if any? When I started out, I was not looking for a system, anymore than when I was learning to drive a car was I concerned with just a quick start. I wanted to learn and experience any and all phases of the game, so that I could see where my strengths and weakness were. In driving, I trained for the Grand Prix.