The 3Dimensional Trading Breakthrough

Brian Schad
you’re getting your moneys worth and, if you have to hold this position for awhile,
the “sleep factor” is in your favor. Specifically, by purchasing the insurance, YOU
CAN BE ASSURED YOU WILL NEVER LET THE MARKET WIPE YOU OUT, AND YOU’LL
ALWAYS LIVE FOR ANOTHER DAY TO TRADE! This I guarantee.
4) Never margin more than 25% - 30% of your total account equity at any
one time.
This is a basic money management strategy. Very simply, if you start out trading
with a $10,000 account, you should have no more than $2,500/$3,000 of your
account margined with positions. Incorporate this rule with the one listed above
concerning the options for insurance and you are “good to go!” Break this simple
rule and you’ll soon find yourself picking up the phone very early in the morning
with a “margin call” from your broker. Furthermore, you may have to liquidate
some or all of your positions (with a loss no doubt), and you’ll have to start all over
again with less capital to work with. Now, you will really have to be selective with
your trades!
5) Do not trade “New York” markets or other “exotic” commodities.
I may catch a lot of flack for this and I know this is not only my opinion, but I have
found New York markets to be very biased towards favoring the “floor traders.”
It seems the floor traders and the exchanges may not always operate with a high
level of professional integrity.
Let me give you an example: When I was a broker, I was involved with many clients
that traded all sorts of markets, and with various types of orders. When my clients
placed orders in the petroleum markets on stops or “at market”, they were always
dealt fills with terrible slippage. Clients would be outraged as they (some of them
anyway) would monitor their positions along with me and expect decent fill prices.
I never once saw decent fills in these markets. We fellows “off the floor” have to
deal with very lousy fills on our orders - especially “market orders.” It got to a
point early in my broker days that I would get involved with time and sales for my
complaining clients only to have a certain rule brought to my attention: (Now I do
not remember this verbatim) In effect, a market order can be filled at any price
within THREE FULL MINUTES AFTER THE ORDER HITS THE FLOOR! This is actually
industry wide. However, New York takes full advantage of this GIVING THEM A
CONSISTENT “EDGE” IN THEIR TRADING. For this reason, and through experience,
I choose not to play on their terms.
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