candle the problem with trading when prices are not moving as much is that the slippage and commissions have seem to become a much bigger factor in thecosts part of the equation. My solution is that you have to be more selective and then put on the size to make up for the frequency of profits you had in the past.
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Missing the glory days of wide ranges.
- Thread starter bmwstox
- Start date
Originally posted by jem
candle the problem with trading when prices are not moving as much is that the slippage and commissions have seem to become a much bigger factor in thecosts part of the equation. My solution is that you have to be more selective and then put on the size to make up for the frequency of profits you had in the past.
Another problem is the risk involved with trading bigger size. Could you imagine getting caught in a trading halt holding 25K shares? Ouch!
I was in a halt a couple of weeks ago. It lasted a few hours. The halt was caused by an investigative article in a magazine. The stock was halted because of a magazine article of all things, I couldn't believe it. The powers that be finally determined that the stock was ok to trade (surprise,surprise). After a few hours there was a test print and then they opened it up. There was a melee of frightened holders selling to buyers at a premium discount. I held onto mine because it hadn't reached my stoploss, all the fury was psychological, a trap. I sold it about an hour later and made a few %. It continued to climb to a high well above the previous day.
But then there's IMCL (IMClone). A real horror story for holders several times during the last few weeks, especially on Friday. There was nothing psychological about it, people in the know were dumping a worthless stock. Caveat Emptor.
But then there's IMCL (IMClone). A real horror story for holders several times during the last few weeks, especially on Friday. There was nothing psychological about it, people in the know were dumping a worthless stock. Caveat Emptor.
Moral of the story really is to do your dd, and then do it again. I've been in trading halts holding 5 figure size before.. It blows. Nuff said. I've never had one really gap away from me too bad though. I think that size is your answer. And there are still truely great moves % wise. Look at cov. I took 35k shares at 1.02 and flipped them on thurs for 1.62 avg. Made basically 60% in 2 days on medium size. You can't beat those types of returns anywhere.Originally posted by Rigel
I was in a halt a couple of weeks ago. It lasted a few hours. The halt was caused by an investigative article in a magazine. The stock was halted because of a magazine article of all things, I couldn't believe it. The powers that be finally determined that the stock was ok to trade (surprise,surprise). After a few hours there was a test print and then they opened it up. There was a melee of frightened holders selling to buyers at a premium discount. I held onto mine because it hadn't reached my stoploss, all the fury was psychological, a trap. I sold it about an hour later and made a few %. It continued to climb to a high well above the previous day.
But then there's IMCL (IMClone). A real horror story for holders several times during the last few weeks, especially on Friday. There was nothing psychological about it, people in the know were dumping a worthless stock. Caveat Emptor.
The Nasdaq was up nearly 50% in just over 2 months from late September to early December. Many stocks were up over 100% or more in the same time period. That's pretty damn volatile by any historic measure other than the bubble.
Lots of opportunity to make money in moves like that. So, it's been flat for a few weeks. It happens. Quitcha bitchin' and adapt, even if it means sitting on the sidelines for a while.
Lots of opportunity to make money in moves like that. So, it's been flat for a few weeks. It happens. Quitcha bitchin' and adapt, even if it means sitting on the sidelines for a while.
I remember the adrenaline flow of those late 99's/early 2000's when I started. Damn would I get pumped up watching things move 15 points plus at the open. The monitors would be flashing, my nitroglycerine at hand, all of it making no sense. Although I was trading for someone else at the time making no $$, it was exciting. What I don't miss was the extreme slippage of 2 plus points, days when the system would go down and I was 2-3 points past my stop when everything came back up, trying to explain to my employer why stops or entries did not meet the predetermined levels. With decimalization, the 1/4 to 3/8 spreads gone, the lack of a lot of the overwhelming retail crowd, things have really tightened up. Yet to tell you the truth, I kinda don't miss the bubble because everything seems to make more sense now. There will always be opportunities in the market and I've got to agree with several of the posts--you've just got to go with what the market offers you.
It's a wonderful thing!!
It's a wonderful thing!!
I use cyber. I knew woodman... he was an awsome trader. I hear he's "retired" (blown out maybe) don't know.. but I haven't really even looked for him in a year. I was never him though.