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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Electric who wrote (37791)	3/31/1998 1:13:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

The S&P trades in tenths. That is, 0.10, per tick. Each tick is $25 a contract. The stops I use vary depending on the environment current at the moment. Generally no tighter than 240 basis points, or 24 "ticks". If they were as close as 10 ticks, or 1.00 points, the risk of getting stopped would be pretty great. So it is very important to pick the proper entry point.....and so it follows that a solid "feel" for intraday action is crucial to long-term survival. As far as $, like I said earlier there are those who trade one, two contracts and those that trade a hundred or more. I'm comfortable between 4 and 10. It's important to feel comfortable....trading is a focused art. Being distracted by the size of the trade, whether too small or too large, is not conducive to clear-thinking. ~~~~~~~~~~~~~~~~~~~~~ I sense I may be spending too much space on the issue of S&Ps. But if there is anything else I can answer I'll give it a whirl.