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They aren't talking about guaranteeing 100% return on your investment, just a return of 100% of your principal, so your rate of return could be zero and they would have lived up to their agreement. Actually, this can be easily done, and is currently being done fairly commonly in both equities...

This is an old idea, lots of folks already do it, and it seems to surface more visibly whenever there has been a rough time in equities, and people are especially concerned about loss of principal. Guaranteed-principal-return funds and U.I.T.'s were all the rage after the "crash" back in '88...

Personally, I don't distinguish, although I know others do. I try and look at every position at all times as though I was just about to put it on. If I wouldn't open it right now, at whatever the current price is, then I should be out of it regardless of profit or loss. As I said, I know others...

Disciplined yes, ruthless, no, never, not at all. And the most sucessful traders I know, many of whom have taken the time to mentor and help me, both getting started and along the way, have proven to be some of the nicest, most personally generous people I have ever met. I also believe that my...

Happens constantly now. Most CBOT pit locals use handhelds to arb trade the screen at the same time. Jessie

If you are doing a few hundred CBOT contracts/day, you would probably save money leasing a seat & trading at member rates in a primary clearing acct. The CBOT website has all the membership info available. Jessie

Probably not, but the Comex contract has more than enough. The mini is really too small for much of a scalp anyhow. The Comex contract is only 100 oz. anyway, so a $3 or $4 move, big lately, is only $300-400 daily range, if you got the whole thing. Jessie

Right! If you are long 10 in one account, and short 10 in another overnight when a report comes out, and the market locks limit up (or down) the next day, you will be EXACTLY where you would be if you were flat, except you will pay for additional comissions and carrying costs. It will neither...

There are reasons to do this with equities, (having to do with shorting rules, cap gains, etc.) but with futures, if you offset in a second account to reduce re-entry or exit risk in the first, all you have done is shift exactly the same risk to the second account (plus additional costs), as you...

The only gold options with liquidity trade on the comex. Jessie

I understand the logic, but if you are long one contract in your long term system, and you buy one contract in your short term system, you have, in effect, closed out your position, and are net flat. It's not a matter of whether you want to close it out or not, whether it is in one or two...

The liquidity figure is deceptive, as there is a designated contract market maker who is required to make both sides, and keep the spreads reasonable. Also, there are traders doing arb with New York who keep it pretty close in line. Jessie

I see what you are saying, but you are still not carrying (net) both long and short positions simultaneously overnight. If you are long in one account with one strategy, and short in either the same or a different account at the same time with a different strategy, you are net flat, and will...

Another question is why? If it's the same position, it's pointless. For example, if you are long sep beans and short sep beans at the same time, you are flat, and will make exactly the same thing on one side as you lose on the other (except you will lose the commissions), so there is no point...

Gold is much better than silver, as there are lots of people doing arb. You can get free quotes at www.cbot.com showing bid & ask, so you can decide for yourself if the spread is tight enough. Right now, the spread is 358.50 X358.80 in dec gold minis, about typical, a hair wider than comex full...

I generally agree, but I think that the point being made is that you have to be willing to look at a small loss, and be willing to take it quickly, and perhaps often, instead of stubbornly waiting to be "right", and taking an occasional big hit. I think it was Ed Seykota who said that wanting to...

Tick increment/size is a function of the contract specification, and is set by the exchanges, and is not a result of the contract liquidity. You are confusing tick size with the bid/ask spread, which is a function of liquidity. Jessie

Looking back, I think that the Market Wizards books made more of a difference to my trading than anything else. No matter what kind of trading they did, options, futures, stocks, arbitrage, whatever, every single one of them stresses that trading small and managing losses is FAR more important...

There is the old saying in research that correlation doesn't equal causation. Just because someone is a good athelete doesn't mean that they will be a good trader, nor does it mean that they won't, just as the fact that someone wasn't an athelete certainly doesn't preclude them from being a...

At least on the floor of the CBOT, there are a grossly disproportionate number of former pro and college atheletes in the pits, and a number of firms recruit former college atheletes as trader trainees. The reasons are a competitive nature combined with a very high level of personal discipline...