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He's saying 1/8th of a $, which means 12.5 cents per share, points in stocks being $1/share.

What exactly did you think I meant by saying that?

I got involved in forex when I was an analyst. I found it a more interesting market than fixed income in terms of something going on just about every day. I've stayed with it since. I like the breadth of tradable instruments without having to deal with the mass of stocks (though I trade them...

Brokers transfer share ownership and cash during the settlement process. There's a 2-day settlement window during which, assuming you're the buyer, your broker takes receipt of the shares from the seller's broker and sends payment back. It's all done electronically, of course. No physical shares...

I have both an undergrad degree in Finance and an MBA concentrated in Finance, so maybe my perspective can add some value. First, going back to the original question, I would say that you are going to learn almost nothing of value to your trading as an MBA student. At best, you could take...

I was referring to market orders. Limit and stop orders are different stories. My point was that there is ALWAYS a spread of some kind. People who claim there is no spread in this market or that are fooling themselves.

This whole discussion strikes me as a bit odd. The fact of the matter is that there are spreads in all markets all the time. As a retail customer you are always buying at the offer and selling at the bid. That's true in stocks, futures, forex, and everything else regardless of how you are...

The short answer is "no". If you have access to Excel, though, you're all set.

I haven't read the book, but my guess is that the timefactor is there to normalize the volatility to a standard timeframe, which is usuallly annual.

December trading can go either way. I've been trading for a while. Some years it's quite exciting, like in 2000 when I was riding EUR/JPY for a huge gain (but a nerve-wracking one). Other years are fairly boring, especially around the holidays proper. It really ends up depending on some of...

My stops are based on the trade, not risk management. For me they are the point at which the market tells me it's not going to do what I thought. That gives me a risk figure which I then apply to the exposure I'm willing to take on the trade to determine size. This generally means wider stops...

My personal philosophy is to set my stop at a point which tells me that my trade isn't going to do what I expected. I basically ask myself "What's the point the market shouldn't be able to get to if I'm right?"

An interesting book on the subject is The Great Wave, which takes a look at historal inflation and its causes. A major culprit has been the rampant increase in the supply of currency. Note, I did not say the supply of money. There's a difference, though obviously a relationship.

Actually, I don't think it's any more or less easy to lose money in futures vs stocks. That's all strategy dependent. I do, however, think it's much easier to lose lots of money! :)

I'll second that. The Market Wizards books are great in that regard.

These trading rooms are all fine and great, but who's teaching the student how to make use of that information? Most faculty are woefully ill-equipped to teach "trading". Heck, a huge contigent are still lost in the "efficient markets" woods.

My point was that forecasting can be done either in linear fashion (regression, for example), or non-linear fashion (genetic algorthims, neural nets). The question did not address the specifics of what exactly "short-term" means. Are we talking point to point? Is it ticks (no time...

It can be done either way, but non-linear is most likely to be the more effective.

I think a better way to state your premise is to say that the fundamentals provide a long-term directional pull or bias, but that in the short to intermediate term there are other factors (including technical, structural, and sentiment) which determine how prices move.

OK. Maybe it's 8pm.