"Face your past without regrets. Handle your present with confidence. And prepare for the future without fear"
I have the opportunity of visiting a friend who is trading from another arcade. He specialise in market opening and closing of the Taiwan contract, an SGX product. He is among one of the best scalper I know who can trade more than a 1,000 contract round turn in half an hour, rarely holding a position for more than 3 seconds. The speed that he executes his trades is amazing.
I observe that he don't have any chart except the ladders for the different contracts occupying 2 full screens. With the Taiex contract (Taiwan Exchange product) side by side, he monitor it closely, through observation and anticipation of the market players' behaviour, he will then execute his trades. Somtimes, he does hedge his position against the Taiex when he feel been squeeze by the big boys.
I saw many of the traders from the floor previously and are now big traders on the electronic platform. Most of them don't have any charts on their screen, and these traders are making money big time! Many of the traders in the Phillip arcade don't look at charts too and these traders are also making money!!!
I used to trade without chart on the floor, what we need is quick action and reaction to the market movement, mostly making money from the "YUM" trades or hijacking trades from the order fillers with our speed advantage. After going electronic, I have to learn how to read charts with so many markets to monitor, combining them with price action to execute my trades.
My friend showed me he made US$2,500/- for the morning less comm of US$1,500/-, his nett profit was about US$1,000/- for half and hour's work and he will be going home to sleep before coming back at 1 pm to trade the closing. He showed me last month's profit of about US$15,000/- nett and scratch trade rebates of about US$7,000/- from SGX (Extra Bonus).
This is one scapler who faces those "Algos" head on without fear and excuses. He told me "it's all in the mind", be "Fearless". How I wish I can manage this "Fear" factor a little better. Probably due to age, as we grow older, we tend to mellow down and becomes a bit more risk adverse.
Profit for the special account went back to S$13,217/- reducing the Topix/Nikkei spread to 1 contract.