Spreads

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-o0(GoldTrader)0o-
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Joined: Fri Jun 13, 2008 2:35 pm
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Spreads

Post by -o0(GoldTrader)0o- » Fri Jun 13, 2008 4:11 pm

1 Use Mony you can afford to lose
Playing with the houses chips gives you freedom.

2 Start small
One calendar spread per $1,000.00 equity.

3 How long can you hold a position?
Calendar spreads can take up to 30 trading days to develop.

4 Do not be a nickel and dime'er
When you want in get in. When you want out, get out.

5 Do not put your complete position on at one price.
In this way, you can keep your wins, bigger than your losses.

6 Do not add to a losing position
Scale down losing streaks, build up winners. It is easier to add in the direction of an established trend.

7 Build a Pyramid
There can be no great gains without pyramiding. Add to your winners by stacking or averaging-up. Build your position when you are breaking out to new highs in the seasonal window.

8 Do not form opinions during trading day
Spread Trading is end of day trading. Make your daily decision. Add, hold, sell, or wait about each one when the market is closed.

9 Do not over commit
Because calendar Spreads are fully hedged you can run tight margins. Usually it can be touch and go for the first week. Nevertheless, when that seasonal thrust starts, you can average-up and use new unrealized equity to add diversifications.

10 Avoid Market Orders
A system using limit orders may be better. Simultaneous MOO and Simultaneous MOC may be they only way you can be sure of getting in or out of spreads with minimum slippage.

11 Use everything you know
Block out opinions. Your trade is your choice.

12 Act promptly
Do not go to sleep without placing your orders for the next trading session.

13 Diversify
Spreading out your risks may reduce drawdowns.

14 Cut your losses short
Small losses, large profits.

15 Let your profits run
Longer profit runs have higher profits.

16 Always take Windfall Profits
The reason for it all. Buy yourself some luxury items.

17 Take a trading break
Trade, rest, Trade, rest. -ooO-(GoldTrader)-Ooo-

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