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Im a trader and collect dividends all the time. I also end up paying some for short positions. Overall though it adds to the bottom line nicely.

BJS/SPN does look like a decent short, there is a nice fundamental edge there as well

archie karas is a famous story of turning a few bucks into millions then losing it all in a week. It happens now and again, you just have to have no respect for money at all.

If you take a trade and have no reason for it, you deserve to lose. You can do everything right and research the heck out of your trades and still lose. If your edge in the trade is not quantifiable, to me it is wrong to initiate the trade.

One does not lead the other, they trade independently of each other the reason that they trade with each other is arbitrage. An institution can come into the pit and start buying 1000's of contracts raising the price of the futures, this also drives the price of the ES higher. The S&P500...

ES is the mini futures contract for the S&P500. It does not "follow" the cash market. It trades at a fair value to it.

this is the same "trader" who had their pump and dump penny stock thread removed 2 days ago. Totally clueless. I've been long FCX and short BHP for the last 6 months. There was a huge fundamental and technical edge in that trade, and so far it is the best performer of the year.

your understanding of market mechanics is flawed. One doesn't "follow" the other necessarily. ES trades at a premium or discount to the fair value of the index. In an efficient market they should trade exactly together at fair value. Right now ES should be trading at -4 approx. Above or...

the people you are referring to are technical analysts of stocks, so their expertise is looking at volume, RSI, support, resistance, chart patterns. SPY represents the index and is kept in line because of arbs with futures and the underlying index. It is a more measurable instrument for them...

trading a tight relationship like that is very difficult, similar to trading a/b stock pairs or mergers. if the markets are moving fast, execution becomes an issue with slippage on either side of your arb. You will have a high cost of carry and with volatility dropping steadily arbs are...

you trade with the imbalance, you can LOC, MOC, or just get out before the bell. AHL, WCN, IR, SY were good for me today, BAC had 17 million to buy, but I only got a few cents out of it.

I trade a portfolio of pairs with a fundamental bias based on P/B, P/E, dividends, and also a technical bias based on trend and moving averages.

Art of the arb is general pairs trading intraday using simple straight forward strategies and it also contains recaps of Rob and Steve's thoughts showing Position Blotters and recaps of trading days back in 2002 and 2003. Which I found most helpful when I was starting out. The main points of...

I trade a portfolio between 350k to 600k in pairs positions with position sizes at 100 or 200 shares for each layer of my pairs and about 50 pairs, though not all are on at all times, usually between 25 and 35 pairs at a time with as many as 6 layers on some. After factoring in all my costs...

If you cannot clearly define your edge, you don't have one. Don't trade if you don't have an edge. As a previous post stated, write a business plan and find a system, backtest it, try it out small, after a large enough sample of small trades slowly size up. Your whole problem is solved with a...

The Zoetrading platform ATS trades through RediPlus and actually submits orders and automatically cancels and replaces fishing orders in the market to get you the best spread price possible based on your trading criteria. The pairtrading programs have one click trading as well as automated...

In my experience diversification with as many different pairs as possible is the best way to go. There are a lot of pairs out there right now that are so stretched out from historical averages, that even a little mean reversion can mean 10 points + in gains. One in particular that has already...

averaging down is a perfectly legitimate strategy if your plan calls for it, especially if you are using a statiscal arbitrage strategy, however, limits and stop losses should always apply. Trade with an edge.

In my experience, you want to embrace the risk of stock vs. stock pairs instead of ETF's because you get much more oppurtunity, especially when using a layering strategy. I am referring to mean reverting pairs. Too much correlation is not good, just like too little is not good. Change the...

there are a lot of prop firms that could care less what you do with your capital or your account. They make money off you no matter what you do. Access to capital is the easiest part, making money from trading is a whole other subject.