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Millionaire
Registered: Mar 2009
Posts: 313 |
01-16-10 12:06 AM
Quote from konviction:
did you start off on abad foot last year then made 400 some %?.. hey if it makes you feel any better im not getting off on the best foot myself.
Me too, i was down 16% of my account in the first week of this year. But that was after about 15 trades and i was risking 2% per trade.
Neke can come back from this, but this seems to happen too often to him, if he carries on like this then one day he will blow up, that's why i hope he gets some sort of external risk manager.
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NoDoji
Registered: May 2008
Posts: 8124 |
01-16-10 12:16 AM
I would suggest, just as an experiment, stop out and reverse at the zone where a trade's intended direction is breached. With BIDU as an example, on Thursday it opens and makes a new high around $450, stalls and pulls back a bit, you buy puts, BUT you stop out if there's continuation and price hits $451, AND you buy calls. If it's a false breakout, you close out the calls and buy puts again. You WILL end up catching the correct move and the worst case scenario is a manageable loss.
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Love Trading
Registered: Apr 2008
Posts: 96 |
01-16-10 12:36 AM
Quote from NoDoji:
I would suggest, just as an experiment, stop out and reverse at the zone where a trade's intended direction is breached. With BIDU as an example, on Thursday it opens and makes a new high around $450, stalls and pulls back a bit, you buy puts, BUT you stop out if there's continuation and price hits $451, AND you buy calls. If it's a false breakout, you close out the calls and buy puts again. You WILL end up catching the correct move and the worst case scenario is a manageable loss.
Be like "water" - Bruce Lee
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GG1972
Registered: Aug 2008
Posts: 484 |
01-16-10 02:30 AM
These Momemtum stocks such as BIDU GOOG MA PCLN etc are widow makers if you dont have any discipline--i dont have much of it hence I dont trade em-when you play R:R game given the spreads and stuff trading DE JPM SPG etc work out the same as these high power names on steroids
just my 2c as always
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western
Registered: Mar 2008
Posts: 157 |
01-16-10 05:36 AM
After a record 2008, 2009 was my lowest earning year since I started trading full time in 2003, and I suspect this year will be even worse. Opportunities are fewer and moves are become more unpredictable. This is a time to survive and wait for better markets.
Your hyperaggressive gut-feel strategy was bound to have a major drawdown, be glad it wasn't an even bigger loss. You must scale back your position sizing. Taking massive intraday option positions is not a feasible sustainable strategy.
And get the idea of hitting four million out of your mind. Such a plan just might have worked in 2008 if you traded perfectly, but the trades are simply not there right now.
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