Don's Openings, Part 6 2003

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Quote from lescor:

But to answer your question, I generally keep about $50k in my account, but that's because I hold a lot of long term positions and I feel more comfortable with some cash behind them. I need $20 million in buying power to enter all my opening orders, and I'd say about a million to handle the fills I get ...
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Thank you Lescor, that looks like an answer. In order to generate an avg. US$6K per month you need US$20m in buying power and about US$1m to handle fills.

For my own purposes (non-prop) holding US$20m to generate US$6K per month nets an incremental 0.36% per annum. Ok, got it (Aaaakkkkk!)

Quote from egusc:

That is one reason Don likes to pump the open's, cause most traders will need to trade at his prop firm and pay him a $1,000 training fee.
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Ok, I get it. Have a nice day all.
 
Quote from BlueHorseshoe:


For my own purposes (non-prop) holding US$20m to generate US$6K per month nets an incremental 0.36% per annum. Ok, got it (Aaaakkkkk!)
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$20 million is needed becuase of how they calculate buying power, it has no relation to the amount of money I actually trade with. 150 stocks x 1700 shares (my average size) x $40/share x two sides = about $20 million. Now, am I going to be long and short every stock on my list? No, of course not, so don't say I "hold $20m to generate $6k a month".

Don't take this the wrong way, but you are way out in left field on this return on invesment thing. It has no relation at all to how it works at a prop shop. What's the ROI of a guy who trades with no capital in his account?
 
Quote from lescor:



$20 million is needed becuase of how they calculate buying power, it has no relation to the amount of money I actually trade with. 150 stocks x 1700 shares (my average size) x $40/share x two sides = about $20 million. Now, am I going to be long and short every stock on my list? No, of course not, so don't say I "hold $20m to generate $6k a month".

Don't take this the wrong way, but you are way out in left field on this return on invesment thing. It has no relation at all to how it works at a prop shop. What's the ROI of a guy who trades with no capital in his account?
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No need to be defensive Lescor. I never said YOU hold $20m. Check the post. I said, most plainly, "For my purposes ..."

(Why everyone so threatened? So tedious!)

On ROI: Someone in this equation is paying for the cost of capital. I understand the return economics of OO, and how the calculations would vary for prop traders and firms, more than you realize.

Don: No, I won't be calling. Thanks anyway.
 
Quote from BlueHorseshoe:



Thank you Lescor, that looks like an answer. In order to generate an avg. US$6K per month you need US$20m in buying power and about US$1m to handle fills.

For my own purposes (non-prop) holding US$20m to generate US$6K per month nets an incremental 0.36% per annum. Ok, got it (Aaaakkkkk!)



Ok, I get it. Have a nice day all.
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ok

but now take the time to math the use $50,000 to generate $6k per month.

The figure isn't compounding though. The larger your orders are the lower your probability of being filled.

Trying to scalp a 20,000 lot isn't the same thing as a 2000 lot.

So the ROI is much larger than .06%:D
 
"Backi to the Basics of Love"...(er, sorry, I mean OO orders).

When we have a flat opening, not much action. Bootcampers were (overall) up about 4 cents net today.

It seems like we're having a "Fall Flu" party around here, with everyone passing it around....sorry that I don't have much more to report today.

Lescor: Glad you're doing well!

"Seasonality" (monthly) seems to be kicking in for the moment, adding a bit of volatility...should be a decent enveloping day for the students.....and the rest of the team.

Anyone remember when the revamped VIX index is going to start trading?

Don
 
Ho ho... hum..hum..

STX +.03
FRE +.10
UNH +.12

Actually wasn't too bad, just felt I had to take very quick profits.

Sure glad I got off that STX short in a hurry.. :cool:

Post open, zzzzzzz

Just can't seem to get the movers.

CCU +.02
FRE -.07
LOW scratch
PG -.01
WM +.05
BVF +.09

All in all, I am learning, but what a process.....
 
Quote from TonySanDiego:

Ho ho... hum..hum..

STX +.03
FRE +.10
UNH +.12

Actually wasn't too bad, just felt I had to take very quick profits.

Sure glad I got off that STX short in a hurry.. :cool:

Post open, zzzzzzz

Just can't seem to get the movers.

CCU +.02
FRE -.07
LOW scratch
PG -.01
WM +.05
BVF +.09

All in all, I am learning, but what a process.....
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You're doing fine....it takes a while, and I know you've been plugging away for a year or so now...and still alive....!! I'm not just referring to openings, but overall....hope you're picking up all you can!!

Don:)
 
You guys crack me up... you come here and talk about what a great strategy this is and keep filling up those training classes and then don't understand why the strategy is going downhill.

Do you really believe that the specialist has unlimited shares for you to trade. You probably cost yourselves another cent in profit every time you post a winning day. It's gotta really suck when you have to go for those big 5 cent profits. Oh well, at least your broker is making commissions!

This is exactly why trading strategies die off: the markets suck out the inefficiencies. They become efficient even faster when traders can't keep their mouths shut. Everyone loves to brag about how much money they make until they realize their bragging is costing them their livelihood.

Jack
 
Quote from JackHamptom:

You guys crack me up... you come here and talk about what a great strategy this is and keep filling up those training classes and then don't understand why the strategy is going downhill.

Do you really believe that the specialist has unlimited shares for you to trade. You probably cost yourselves another cent in profit every time you post a winning day. It's gotta really suck when you have to go for those big 5 cent profits. Oh well, at least your broker is making commissions!

This is exactly why trading strategies die off: the markets suck out the inefficiencies. They become efficient even faster when traders can't keep their mouths shut. Everyone loves to brag about how much money they make until they realize their bragging is costing them their livelihood.

Jack
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Geez, Jack, you don't sound like a happy camper. Remember, mental attitude means a lot in this game. And I wouldn't worry about the markets, as long as we adapt. We've only been doing these things since the 1970's ....hasn't worn out yet, and we have a whole new group of stocks to add when the AMEX starts doing OO's for Nasdaq stocks.

Can't have those "broker dollars" coming in unless those "traders hang around"....

We try to adapt, and we certainly have changed the way we teach openings vs. how we were teaching last year.

I hope you're continuing to make money.

All the best :cool:

also, 10 cents x 5,000 shares per day still equals $100K per year.
 
"and we have a whole new group of stocks to add when the AMEX starts doing OO's for Nasdaq stocks. "

don are the rules going to be the same as nyse for this? how will they arb it with the naz already trading before the open? when is this supposed to start?
 
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