as long as position sizes are small enough, that's one way of trading. But difficult to follow. RISK : yep, I am myself trying to make this "idiot proof".
Small position sizing is indication of a total lack of entry skills and sign of uncertainty and conviction.
Not sure about that. One trader had something like 200 trades on the go : all tiny one, with a nice equity curve. So I can only realise that what is important is profit vs risks, no matter the method.
With all due respect, as you seem to be on positive roll right now, RM has made more money trading than I would guess you have made in your life in any endeavor so may I suggest that you show some respect to your idols---
Maybe instead of blindly following, going short, and holding overnight you just take a look at the instrument. Maybe you know that "news" stocks marked up AH tend to attract a lot of fish at the open, you wait to see how it opens, and when the new buying runs out at the open you short some at 16.25. You take very little heat and scalp a buck from it, out not too long after you entered. I'm up $800/contract on hogs this year, a market I don't usually follow, thanks to RM drawing my attention to it. I didn't trade where and when he traded, but I took the same side. Today is another good example of how thinking for yourself and applying your own hard earned knowledge and skill to a market idea can give you a good risk adjusted return (on small size of course as its outside of your core instruments, and you're in and out inside of a few hours). Generous of RM to post and a boon for those who do the work and think for themselves. But you seem to want someone to do your risk management for you as well as you're apparently incapable of independent thought and personal responsibility - two essential traits of a successful trader. Instead you are disparaging the man and calling him names. Lack of character. What is the point of participating here if you are going to be alienating yourself from those who are successful? I'd put money that RM also added some decent size just north of $16 at the open and scalped a profit on it reducing risk and improving his average price on the position. Like nokomisjeff's coup on CFC back in '08 - (similarly - what stock has any business opening up >40% in such circumstances?). I've a bug bear with the ET clowns. I'm somewhat of a recluse and the Internet is a great resource. I've had quite a bit of help in my trading career (I have no institutional background and come from another field) from some very successful traders who I've connected with online and elsewhere. Decent hard working honest people. And yet nonentities mock them and produce the type of environment where few serious people would bother participating. Something very wrong with this. RM, sent you a PM a few days back. Nice trade.
Thank you for the sermon, I agree with what you said, except that RM said to short 14.50, and that entry was horrendous, considering there are no options (in or out of afterhours) to be found to limit risk on this co. One more thing, you ever want to compare P/L on a daily weekly monthly basis in a private manner, let me know, I bet I can humble you Mr Sermon.