????????????Bronte said:What do you trade and why?
Great question Pager
We trade the SPI Daily
For the following reasons:
Leverage.
Volatility.
Good liquidity.
Ease of execution.
Diversification.
Just as easy to Sell.
Zero counterparty risk.
Price transparency.
Low transaction costs.
We have specialised in 'Trading the SPI'
Do you have a question?wayneL said:????????????
You mention diversification, yet seem to trade only one instrument. Not meant as criticism, but this seems more like concentration than diversification.Bronte said:Do you have a question?
Bronte said:Still confused Wayne
So what is your question?
Yes I did and we believe that it is.wayneL said:You listed "diversification" as a reason for trading the SPI.
Nevermind, I'll never get an answer.Bronte said:Yes I did and we believe that it is.
Still not sure why you have questioned this Wayne
Brent PenfoldwayneL said:(Sigh) Brent Who?
Brent explains 'Diversification' very well in this book.Bronte said:Brent Penfold
http://www.indextrader.com.au/
Yeah I knew that, but was subtly pointing out that Brent is not the keeper of the trading gospels, just another guy who wrote a book. Having flicked through the book at Borders, I am confident that the point on diversification is either out of context or apocryphal.Bronte said:Brent Penfold
http://www.indextrader.com.au/
So what was the meaning behind this?wayneL said:(Sigh) Brent Who?
wayneL said:All your risk is tied up in one single chart. This is the antithesis of diversification.
Yes agreed theasxgorilla, and very nicely explained.theasxgorilla said:If there are 200 constituents the likelihood of a single exchange affecting eventing causing all of them to fall out of bed is pretty slim. But if you were in a single constituent, like for example NAB during the traders scandal in 2004, you would have really felt the pain.
You don't tie risk up in a "chart"...no matter what you trade there is always an underlying reality eg. a commodity, a currency, a company.
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