Options 02 (Oct 09 - Dec 25)

[kennynah]

Futures = leveraged play = higher risks but oso higher potential rewards

Do keep this in mind

[lithium]

Thanks for the good advice Kenny ko.
What attracts me to futures is the low brokerage. Especially in these kind of trading market. I find myself tend to trade a lot more this year in order to protect my profits and capital. Unlike 2009, you just need to buy and hold because market goes only 1 direction.

As for leverage, I don't really play it at the moment until I get more experience. What concerns is actually the slippage. Sometimes it can overshoots very much like today. Futures players are pros. So must be extra careful

[iam802]

Thanks for the good advice Kenny ko.
What attracts me to futures is the low brokerage. Especially in these kind of trading market. I find myself tend to trade a lot more this year in order to protect my profits and capital. Unlike 2009, you just need to buy and hold because market goes only 1 direction.

As for leverage, I don't really play it at the moment until I get more experience. What concerns is actually the slippage. Sometimes it can overshoots very much like today. Futures players are pros. So must be extra careful

Slippage in terms of commission?

Depending on your brokerage, commission can be very low (especially so if you compare it to trading the Singapore markets).

So, one of the first thing to do when trading the US market is to choose the right brokerage

[kennynah]

i think maybe lithium meant "bid/ask" slippage rather than commissions...

[iam802]

ah thanks.

Bid/Ask slippage is easy to overcome.

Just don't trade the illiquid stuffs.

[lithium]

Haha, no no no. I don't know how to use the terms. What I actually mean is discount and premium to the cash market. Haha. You know what I mean?

[iam802]

so many different terms...my 'England' cannot handle.

[kennynah]

Haha, no no no. I don't know how to use the terms. What I actually mean is discount and premium to the cash market. Haha. You know what I mean?

this is not called "slippage" ....it is called "Interest Rate" or "Carry"...hahahaha...i also kana confused...

[lithium]

KAKAKAKA......... sorry guys for confusing all of you....... let me explain in details so you guys can really catch what I mean.

I'm not a day trader, I have a day job, so I can't see the screen all the time. I only check the market 3 times a day, Opening, lunch break and 5~10mins before closing. So I made my decision based on how the market open and close. Currently I'm paper trading the sept Mini HSI futures contract call MHI.

Today, my HSI support is at 20500, it breaks the support after lunch time down to 20300++, before closing at 3:55, it shot back up and close above 20500. So my decision is to go Long. That time MHI is still trading at 20300++, I expect it to continue to go up to at least 20400++ after market so I can Long it. But it actually made a U-turn and drops even further after market until the difference between the Cash HSI and MHI is 200++ (>1%). Yesterday, the difference was only 100+. So I don't know to go Long or Short now because I don't know which one to follow since they go separate direction.

Can understand my england ah, guys?

[kennynah]

in US context...i use SPX and /SP as the corresponding HSI and MHI respectively...

futures market run almost 24 hours ..and so /SP is tradeable after the SPX officially ends at 4am(our time) every week day...

so, what happens, is that when market opens the next day, depending on where the futures price is...SPX will then catch up...

i think it should be no different for HSI and MHI situation....

that is, if i even get your point correctly....

there has always been the mystery as to whether the Spot market leads the Futures market or vice versa.... if you have the answer, please educate me...becos, i dun know the answer...