The Bear

Can you guys recommend me some CME (Globex) index futures that have similar leverage to the DD Big Dow contract? Anything equal to it on CME?

Were you pit trading at CBOT?

Yes, I don't understand him though. THis firend of mine. He has these pretty big losses. Last year he was down $25,000.00, and now he's been doing this naked options writing. Is this a logical move from the stock market? I like the guy and don't want to see him get killed in the market. Could he? Do you have any advice I can repeat to him? I want to see him succeed. His father has a $3,000,000.00 trading account...and he's been taking big hits...his losses seem to be getting bigger...$40,000.00 loss alone on the big drop day in the dow recently. I keep repeating to him that he should lower his risk unit and just see if he can make money with small risk and small gains. Then slowly move higher. He made like $300,000.00 in 1 yr back in the NASDAQ boom days... but I'm scared that walll street will take it ALL back. These markets today are difficult to trade.

Do you guys think this will get delisted because there is no volume, STILL. I hope not. This is a great product, I highly recommend it.

Not really, I trade the big dow DD contract, and I haven't yet gotten bad slippage. Expect though a wide spread of $150-200 / contract, so your stop has to be pretty big for even 1 contract just to avoid whipsaw. The $10.00 is available for overnight GLOBEX and pit during the day. It's pretty useless for me. DD is a great weapon but it would be nice to see more than 90 trades in 1 day. Why is it such a bloody flop after all this time. I would think - anything to do with the dow would be attacked.

Can someone explain to me the main risks in this stock option activity? I have a friend and this is all he does. Is it any more dangerous then shorting something in the stock market overnight on huge margin, and having it gap against you hard way beyond your stop in the morning?

Anyone know any details of the new Reg. NMS comming into effect? How does it effect the NYSE Hybrid system? Will orders under a certain size now be electronically matched....at lightning speed? No more vinny specialist down at the post playing god? Maybe finally I can start shorting Halliburton again.

That's funny. That would happen to me too. It would happen with my stop orders too...so buy to cover on shorts. My stop would get hit and my market orders would just sit there. Sometimes 30 cents later I would get filled. It was a joke. I picture some specialist named vinny laughing down at the post and he sees our orders just sitting there. I used to be a chronic short seller of HAL. Those days are long over though.

Finally I could start shorting Halliburton quickly. Let's wait and see.

For a) it depends on what kind of activity you are doing. Is this for intermediate term trading...meaning weeks holding time. Is this for intra-day trading? I don't understand what b) means.

Thanks guys this helps alot. I'll look into each of your e-mails. This looks very ugly, and possibly costly for the beneficiary. Accountants and lawyers could make up stories and charge the hell out of the estate for these procedures? I have been noticing in a will book that the beneficiaries can sue the lawyers if the fees are outrageous, BUT, with nothing to compare to, and the beneficiary I want has almost no business sense..they could be left with substantially less. The worst is, what if we were in a overnight futures position and then we died, and it was creeping up to expiration...the broker would liquidate it automatically? I think this is something specific to the broker, I need to look into this.

This may be a morbid question, but does anyone know what happens to our brokerage accounts if we were to die? Meaning, is the executor of our will allowed to call up the broker and ask him to liquidate all positions, and can he close the accounts, or can it only be done by a lawyer via written letter? The problem is, I would want to make it as easy as possible for my gal to get her money if I croak, but with the least amount hassle.

Ya, I don't think it is possible for them to introduce the uptick rule. The futures market (which is a true zero sum game) may not function properly, and I highly doubt they would implement the rule just to test it out, to simply 'see' if the rule did anything good for the market.

I heard about this place...they are in richmond hill right? An aquaintance I knew said he wanted to get into the stock market. And at the time, I remember I heard about this company...swift trade, so I referred him to the website. It was nuts, within 1 week he said he was already trading, they literally take people off the street. He ended up in some dark room near china town or something..with a bunch of computers and people eating food at their stations. Anyways, it sounded bizarre. I should call this guy up to see if he's still there. I'm curious if he was able to stay on the 2 months. I remember he told me in the training session, they simply told the applicants that, if you can play video games really well, you can do this.

Grandma from idaho ha ha that's funny. Buy and hold with no stop. But hey, who am I to laugh if grandma's making the gains right? If it works it works. As far as warren buffet, I have no respect for this guy, because he's 'anti-futures'.

Oh no - your near that monster walmart. I went there the other day and spent all my time trying to find stuff. Then you have to wait in line for an hr. It is literally bigger than the Anchorage, AK airport.

WSAM, it's funny I notice you live in T.dot. I live near YONGE + YORK MILLS

No it's true. Your right I keep looking at the bean trade. I need to stop looking. It was a daily swing trade but the thing that gets me the most is I was following it all summer, everyday, and I felt the turn...and I got in at a great spot. Check it out: OCT 4 2006 ENTRY: 555

Walker X, I'm curious why you said this: -No uptick rule (not that its going to be lasting too much longer) Do you have some information on this from a reliable source?

Correct. You explained it. In terms of your activity, you are INVESTING in stocks when you care about the standing of the company (fundamentals), and use it as a wealth building strategy. You actually care about the thing you are investing in. When you put this hat on you are an INVESTOR. When you start plunging in the futures market...trading for quick large gains (or losses), it is SPECULATION and you've put on your SPECULATOR hat. I could care less about the soybeans I sold or the live cattle i'm liable for. It could even be intermediate term too. I'm impressed that you can do both. I hope one day I could understand the stock market like that. I still don't know what a PE ratio is. I have enough on my mind currently, to try and not get blown up in the commodities market. Oh - in my opinion, the investor role doesn't exist in the futures market.

Because most people are investors, not speculators.

Did I mistake myself or did I read somewhere in a previous post that the NO UPTICK RULE (currently) in index futures is comming to an end...and they will be introducing this uptick rule? Where can I read about this.

This is impressive. You've got the skills to hold on like that. This is what will separate you from the greenhorns.

Oh I totally agree with you. I see big time upside potential for oil. The next hezbollah or middle east incident could send it soaring again. I know this is pure guessing....but I really believe we MIGHT see 100.00 barrel oil in our lifetime. When you say you are a steady accumulator....are you using the USO fund or CL ? This site is awsome...but I wish there were more people that would talk about commodities.

What are your thoughts on soybeans anyone? I was long months ago on a swing trade at the beginning of the bull run...but got out early for a small profit. At this point i'm reluctant to get in...I feel the move might have happened already.