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Peternam
Registered: Aug 2010
Posts: 571 |
10-06-12 08:02 PM
Quote from Ituglobal:
Joe Ross: Trading Is a Calling
LEARN FROM MARKET WIZARDS - PART 4
Joe Ross has been described as one of the most eclectic and one of the most experienced traders in the world. He’s a BSc in Business Administration (University of California, Los Angeles) and an MSc in Computer Science (George Washington University, Virginia). As far as trading and investing is concerned, he got his feet wet when he was as young as 14 years old. He uses trading approaches that generate constant gains from the financial markets.
Most experienced traders in the world ? LOL 
The guy can not trade his way out of a paper bag, ask him for any results and he will kindly refuse ..
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ronblack
Registered: Oct 2006
Posts: 569 |
10-07-12 04:09 PM
Quote from ssss:
http://minervini.com/bio.php
Mark Minervini is one of America's most successful stock traders; a veteran of Wall Street for nearly 30 years. To demonstrate the capabilities of his SEPA® methodology, in 1997, Minervini put up $250,000 of his own money and entered the U.S. Investing Championship. Trading against stock, futures and options traders, he traded a long only stock portfolio to win the real-money investment derby with a 155% annual return, a performance that was nearly double the next nearest competing money manager.
Minervini is featured in Jack Schwager's Stock Market Wizards; Conversations with America's Top Stock Traders. Schwager wrote: "Minervini's performance has been nothing short of astounding. Most traders and money managers would be delighted to have Minervini's worst year – a 128 percent gain – as their best."
Using his SEPA® trading strategy, in a five-and-a-half-year period Minervini generated a 220 percent average annual return with only one losing quarter. To put that in perspective, a $100,000 account would explode to over $30 million with those returns.
http://minervini.com/
http://markminerviniblog.blogspot.de/
If he is so great why does he need to sell subscriptions to retail?
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trader198
Registered: Mar 2010
Posts: 1217 |
10-07-12 05:01 PM
the secrets of trading is talk is cheap.
profit will not take care of itself. if the guy who bought NFLX at 100, it ran up to 300+, he did not take profit, and let it slide to 50.
loss will not take care of itself too. if another guy bought NFLX at new low at 45 (NFLX to the above guy a loser), and ignore it, it printed 67.
trading is an intelligent game, you must actively take action to let you become a winner or loser.
if you do not take care of your profit, your profit "puff" in blink of eye
if you do not take care of your loss, your loss may magically become a piles of cash.
either way, it is your own choice.
the right way is: take care of both profit and loss.
the efficeint way to take care of profit is: trail
the efficient way to take care of loss is: prepare the worst scienio before hand, so you know when you are wrong and cut loss short, move on. most people use cheating method:wait, it is ok. if you are just an investor, not a trader using margin, you do not need care about the up/down. to investors, TIME is his friend. to traders, margin/leverage is his enemy.
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trader198
Registered: Mar 2010
Posts: 1217 |
10-07-12 05:34 PM
the fact is:
whether you take care of profit or not, there is three possibles:
1. the market will not give you profit any more, stuck there
2. the market will keep giving you more profit
3.the market will rudely reverse and take away your profit, and if you do not take action, take away more even wipe your out
my wife always asked me about trades. she wanted to buy some stuff in her IRA. often I gave her the right time to buy, she will buy , most time immediately green, she is happy, then I realzied she bought something, I noticed the sell signals, and ordered her to liqidate the holding, she suddenly changed her mind, "no, it is going up, why sell, I want my money doubled". then the funny thing happened, she did not sell. after weeks, she noticed her holdings become red, she started to panic and ask for my suggestion. I said " you are not trading, just investment, you do not need pay attention to the daily ups/downs, just hold on, be patient". she started to frequently check the quotes, login her account and bother me about her holding, worried about the drop. I keep telling her " it is ok to ignore the drop and hold". after months of this struggle, the market comes back, and just I want to tell her to add, she could not wait and dump at the exact entry, see the market shoots like a rocket. then she may try to chase or the bad past horrible experience hold her and concluded :" investment is hard". In reality trading is not hard, just mouse click.
my wife's mistake is she does not know the market, she has no understanding of "TIME is her friend to an investor", the critical mistakes is: do not prepare beforehand, she wants to be a trader to timing or an investor to divendend and captical apprication, how long to hold, when up, what she do, when down, what she do, what indicators/clues/patterns to judge direction/reversal, before she bought her holding, she had no plan at all.
there are no secrets in the market. some market trends, always, just like MDVN, very nicely. FB too
some market cluelessly bizaare,.
to me, I know the trending market the most, so I just trade trending market. that is my secret.
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blkcrk103
Registered: Sep 2012
Posts: 11 |
10-07-12 09:29 PM
Quote from Hoofhearted:
Nice thread! It is interesting to me that most (if not all) of the above Market Wizards all seem to put alot of focus on stop losses. That is cutting your losses very short.
I won't try to argue this, as it really does seem elementary- the theory being that if you cut your losses short and let your your profits run long, then by mathematics alone, your account should continually go up over time.
I would however like to point out that another very successful trader/money manager/teacher, Jim Cramer, from CNBC's Mad Money, hates the idea of using stop losses.
He doesn't think you should abandon your position just because the stock drops a few percent from your initial entry- as long as you buy larger quantities as it goes down, in 3-5% increments.
He points out that nobody can ever know exactly when a stock has bottomed, so be mentally prepared for it to drop a bit further(maybe even up to 20%).
He would rather you just capitalize on more opportunity when a company's stock goes down, so long as the fundamentals haven't changed, and there isn't any news that an asteroid is about to strike the company.
Of course this theory would probably be more suited for stock traders rather than paper traders. And it is probably more suited for someone who has deep pockets, and can stomach the pain of throwing more and more money into a losing position. If you think about it though, it is a great way to get heavily invested in a product that you believe will eventually go higher.
Let the Cramer haters squawk- he's helped me a bunch.
Thanks for the articles!
Cramer advises people on long-term portfolio management. He is there to help investors, not traders.
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Hoofhearted
Registered: Aug 2012
Posts: 447 |
10-07-12 11:22 PM
Quote from blkcrk103:
Cramer advises people on long-term portfolio management. He is there to help investors, not traders.
He often talks about the concept of trading around a core. He explains very well the strategy of selling some off every time your stock goes up 3-5%, then just buying more every time it goes down 3-5%.
Basically swing trading, only your are constantly holding on to a core position, while buying and selling on the swings.
You are right, though that Cramer mainly focuses on portfolio investment, but he does throw bones to the traders if you listen enough. He use to do it a lot at his hedge fund. He claims the most money he ever made was buying option calls. Deep in the money, and the next month or two out.
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