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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Chip McVickar who wrote (15155)2/10/1999 9:48:00 AM
From: Tom Trader  Read Replies (1) of 44573
 
Chip, I'd trade the futures before the options

I think that it is very difficult to be successful at index option trading unless one is either very nimble or one gets a big move. I am referring to the long side of options -- I trade the short side, selling naked OEX calls and puts and that works well but it requires a lot of margin.

Re the mini vs the large contract -- it's a question of available risk capital and one's ability to handle risk. What is very important is to be sure that you don't trade more contracts than your comfort level permits. This is very very important -- it'll prevent you from making emotional and erratic trading decisions.

Finally, as I said to you in a prior post a while back, there is a difference between paper trading and having money on the line. It is an emotional thing and don't be surprised if when you start real time trading your performance numbers are not as good as when you were paper trading.
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