Here's a new way to relax during trading

[Trader333]

I have not had any problem getting filled on SPY, in fact pretty much instant, but I am not trading at 1000 share lots yet because this strategy is still in development. 1000 would be the maximum that I would trade though when fully developed.

SPY is highly liquid and I like it because the minimum movement on ES is 0.25 where with SPY it is only 1 cent so my risk is reduced at entry on SPY. I can also buy on the bid with only a 1 cent improvement which again you cannot do on ES.

For me the biggest advantage is that you can scale up or down your involvement in trading it by how many shares you buy or short. With ES you have to double from 1 to 2 contracts where I would prefer to just increase my involvement by maybe 20% from 500 to 600 shares rather than 100%

Also there is no uptick rule for SPY so another reason to consider it if you have the available funds.


Paul

 

[anmolway]

thanks for all the information trader333.
I have not started to trade the es - a few months off yet, but i am just gathering enough information as possible about the pros and cons.
Can i ask, roughly how much does one point on the es equate to on the spy.

thanks in advance
Harjap


nb
do you think one would have a problem in dealing with say 2000 shares on the spy in terms of getting filled with a decent price.

 

[Trader333]

anmolway,

1 point on ES is worth approximately 10 points on SPY but it does vary and I honestly dont know if getting filled on 2000 shares would be a problem or not. I dont think that it would do but you may not get filled all at the same price.


Paul

 

[Mr. Charts]

Harjap,
There is no problem in my experience with 2000-5000 shares on SPY,DIA,QQQ.
You can see the depth of market easily and the fills are under three seconds, usually rather less, even on large size.
I used to trade eminis but switched to shares. However, I sometimes still dabble using the old methods but use the above instead.
Richard

 

[oatman]

Skim, what make of sewing machine and breed of dog do you use? :cheesy: