Trading The Same Stock Every Single Day

[NoDoji]

Quote from rolando87:

I would like to see if anyone has any opinions stating why the ES would be better for a small player, leverage aside. Perhaps I am missing something.

If you wanted to swing a position during the week, you're protected against the morning gap if you have a stop in place.

 

[rolando87]

Quote from NoDoji:

If you wanted to swing a position during the week, you're protected against the morning gap if you have a stop in place.

That's a very good point too. Thanks for bringing that up. I forgot to mention that I was assuming only intraday trading in all instruments

 

[stock777]

Quote from stock777:

yup, RIMM only trades 13 million a day last 3m avg, way too little for the whales here than need to print 50k blocks.

no liquidity indeed .

what was hello goodbyes nick before he had to switch?

Quote from Hello:

Please try not to bother me with issues trading less than 1 -2 million shares a day, i try my hardest not to waste my time with such issues, cause the only way i can make money is through HFT trading and pennying the scalper behind me!!!

WTF are you talking about you lunatic? You seem to have a habit of going way over board while the vast majority laughs at you, feel free to point out how wrong i am, i would love to hear this.

Mentally ill. I reference a stock with 13 million adv and he talks about 1 million as being his cutoff. Sad.

 

[rolando87]

Quote from bighog:

What you are missing is concentrating on price action itself instead of the costs of doing business. You failed to mention that the bigger tick value in certain instruments are just fine and dandy when correct.

THINK winning, NOT losing and worrying about costs.

Right, but isn't the price action among those three instruments quite similar, especially the ES and SPY. That's the main reason i compared them, everything else being equal, there are some disadvantages for the small player when trading the ES rather then the SPY, most notably being the spread costs.

Also, one has to keep costs in mind, assuming a trader can generate a perfect 50/50 profit/loss ratio, the trader will still go bankrupt overtime because of costs of entry.

If that same trader can achieve an winning edge slightly higher, say 51/49 profit/loss ratio, he/she may break even in SPY, but the ES may bankrupt him/her overtime, simply due to the small percentage differences in the spread and commission. It only amounts to maybe $5 more each trade, but times that by 100 trades, and that's already 500 dollars.

That's basically the point I'm trying to make.

 

[GG1972]

Quote from NoDoji:

Chase, churn, chase, churn. I have no idea why I had such trouble with X, but it was quickly banished from my list.

If you look at intraday charts sometimes you can see that clearly where it doesnt make sense and it only happens with certain stocks (some very liquid ones) where lets say the previous bar is red with topping tail the bar breaks downwards and then you see the stock retrace just above the tail-stops you out and has a sharp sell off in your intended direction. Had a lot of those in the beginning but now if a setup is leggit and that kinda stop out happens more than a couple of times I just knock that stock outta my list--few I can think of from last few years are GRMN (used to trade this a lot) NTRI RIMM X MOS CF ---goodones I still like are NEM FCX CLF AMZN