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> From: w.murray <w.murray@xxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Stocks vs Commodities
> Date: Monday, December 29, 1997 1:49 PM
>
> I would appreciate your opinion on why you trade stocks vs commodities or
> vice versa. Also if you trade options, or dont trade options, on stocks,
or
> commodities, please indicate your reasoning for this stategy also.
Thanks.
>
I agree with Bill, and to add my $.02, you can trade a thousand shares of
Intel for $70,000 or so,(of course you can trade stocks on margin too),
but with a $70,000 account, I can system-trade a very nicely balanced
portfolio of S&P, Currencies, Bonds, Eurodollars, Meats, & Lumber(yes Bill
lumber is thin, but I trade single lots of multiple months), and have
plenty of draw-dodwn cushion. The capital requirements for trading futures
are smaller percentage wise, but conversely, the potential for loss,
percentage wise, is greater. Concerning options, I sometimes buy
options,(mostly to open), based on longer term support/resistance levels;
example: I recently started buying April 305 gold calls because we're so
near the long term support of 280-290 cash, but I risk losing $350-$450 per
contract if I'm wrong. And remember, in any game, being wrong and not
protected, can cost a lot!!
Steve
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