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Old 03-27-2007, 08:15 AM
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Re: Position Management Strategies

I will attest to trading a single car vs multiple cars. Basically, my story is such. I started day trading after realizing I wasnt the kind of guy that liked holding a position overnight. When I started, I said...I will trade 1 car until I felt comfortable, then trade 2.

That was about 6 months ago. Then, one of the board members (actually a few) taught me about the wonderful thing that is trading with multi-contracts. Money Management starts to become amazingly wonderful, and if I had done this from the get go...then I'd have saved a LOT of cash on losing positions.

This is how I do it right now. After 5 YM points, I cut one car off and move my stop to breakeven - 5. Now I'm in a scratch trade at the worst. Then, my other I will take off at +10 if the market conditions warrant that, or I will take it off at +15. Many of my ultimate 10 point losses in the past would have been avoided had I used this strategy.

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