Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (18094)	4/22/1998 11:52:00 AM
From: Tom Trader	Read Replies (1) \| Respond to of 50167

Lisa--re >>for options -it depends on how much of a movement your system will "predict"<< Not really sure that I have seen a system that is able to predict the extent of a price move, with any degree of consistency/accuracy. >>I dont know how TT does it....just buys his futures and off he goes...I would be glued to the screen EVEN with stops<< I place my stop/stop and reverse, usually within the first 10 minutes of each market opening. Then there is really not much to do -- the stop will either be hit or it won't! In early days, I found that watching the price action intra-day caused me to want to try and better the system -- like today, I might have exited at 1139+ and tried to re-enter at 1136. Well guess what would happen, I'd exit the position with a view to re-entering at a better price and would end up missing the boat and not re-entering--and would end up missing a big move. So several years ago, I stopped doing that--and have been the better for it.

To: ViperChick Secret Agent 006.9 who wrote (18094)	4/26/1998 2:35:00 PM
From: Thomas Winklhofer	Read Replies (1) \| Respond to of 50167

Sorry for delay, Lisa. > for options -it depends on how much of a movement your system will "predict" On RUT the average win is 5 points. My system doesn't 'predict' like Kevin's MF tool does. My risk management provides exit points looking for support and resistance levels. > with the futures...all you need is a point or two Yes, of course your possible loss isn't limited. With futures you get rid of the spread problem which you have with options. But the spread cash/future is varying due to market situation and can kill your profit that way. > on the SPX they keep the spread wide...but occasionally I see it get > down to an 1/8....I always say they dont know which way the market > is going right now....but I dont know that this is the reason.. > maybe they are just trying to unload a position.... I think its just a MM trick to attract option sellers before an expected move. I saw this several times that immediately after a filled bid the ask was raised scalping the option buyer afterwards. When the MMs do not know which direction the market will go, I would expect a big spread when the vola is high. Thomas