Why trade at all?

[indahook]

Quote from candletrader:




The operative phrase is "in size"... ES doesn't pose liquidity issues in the way that trying to trade the equivalent face value of stocks would pose... spinning 50 contracts on ES would currently be equivalent to about $2.5 million of SPY (the Spider Trust ETF), or 25000 shares of SPY... but spinning 50 contracts of ES doesnt pose the same liquidity issues as spinning 25,000 SPY or, for that matter, an equivalent amount of corporate stock...

Candle, just a sidenote here. I know a fund that trades the SPY and QQQ`s only intraday. They only trade in 100K share lots. Watching them trade was ridiculous, taking profits just like an ES trader..i.e .20 on 100k two or three times a day. There were no liquidity problems at all. Most of the time they got filled in 1-6 lots MAX.

 

[illiquid]

Quote from DT-waw:



What?? 180k in a day with 50 lots? You missed a dot in that number. 1.80k /day with 50 lots, that will be 1800 / (50*50) = 0.72 ES pts /day. Sorry, English is not my 1st language, I don't understand "shy of your number by 20"... I guess you mean "divide your number (1.5 pts/day) by 2" - to get realistic figure.

He meant 50 BIG MAN contracts of course -- them professionals in chitown dont bother with no emini mouse crap!

 

[DT-waw]

Quote from illiquid:




He meant 50 BIG MAN contracts of course -- them professionals in chitown dont bother with no emini mouse crap!

Really? $180k / (50*$250) = 14.4 pts /day

 

[wavetrader1]

Quote from candletrader:



I gotta agree with Brother DT-waw... it is an outright fallacy to claim $180,000 profits with 50 lots on any day last week... that would equate to $180,000/($50*50 contracts) points per contract = 72pts per contract, which is clearly bullshit... 7.2 points was possible, but 72 points per contract is simply crap...

All of the best and most consistent ES traders I know do not average much more than 1pt a day on average in size... some days they may get 10points per contract, some days they may lose 5 points per contract... but their average doesn't exceed 1pt by very much...

Obviously he was trading the big contracts. I traded on thursday and it was a swing traders dream, to nail 38 pts could have been possible, but not probable. Trading 50 could have very easily got high 5 figures or low 6, if he nailed the swings. Who's bitching anyway unless your name is Bill Gates.

Good Luck,

Wavetrader

 

[DT-waw]

Quote from momotrdr:


24yr. old trader sits next to him, trades 50 lot positions daily.
Yesterday made 180k. Ok, so shy of your number by 20.
BFD!

Y-T-D, from Jan. 1st up 3/4mil and accelerating.

With 50 big contracts he probably trades ~$2-$4M capital. Sure it's possible to make 3/4 M in 7 months.