1% per trade

Discussion in 'Trading' started by Gordon Gekko, Jun 6, 2002.

  1. docarzt

    docarzt Guest

    daniel_m said:
    Of course there are more opportunities to catch 3% moves than 30% moves. To give you a daytrading example, take a $50 stock, of course there's many more opportunities to make 10cents than to make $1. It doesn't mean it's "easier" to do though.

    I absolutely agree with this. In my experience it is not easier.
     
    #21     Jun 6, 2002
  2. spectre

    spectre

    Choosing to hear what we want to hear is human. Everyone has a different style; whatever works best for you. Posters could go on and on about expectancies, probabilities but I think the only way you will find out is to try it. Paper trade 2 accounts and decide for yourself what works best for you.

    Pick up this book : Tharp's Trade Your Way to Financial Freedom and see if the ideas make sense. It might help you with developing a system. It doesn't seem like you have one.

    p.s. Cut your losses and ride your winners? (unless of course in the time frame that you are trading in rarely produces anything over 3% then I suppose small targets are ok for you).
     
    #22     Jun 6, 2002
  3. docarzt

    docarzt Guest

    Ditch:
    What is your R:R? Is your risk smaller than your target?

    daniel_m:
    I'm not sure that the relationships are linear. ie, 1%stop/3% gain = 10%stop/30%gain. So much of that depends on the strategy you employ.

    I'm not sure, too. It was just an example. In my trading I am using the average true range instead of %.
     
    #23     Jun 6, 2002
  4. spectre

    spectre

    3 times your initial risk
     
    #24     Jun 6, 2002
  5. Ditch

    Ditch

    I'm using a stop-loss of 2 pts, so if I'm lucky I get out at 2.5 pts.
     
    #25     Jun 6, 2002
  6. I doubt any serious trader out there hasn't read that book.

    Here's an idea. Why don't regulators make reading and explaining that book the requirement to trade at a prop firm, instead of that freakin BS series 7 rubbish.
     
    #26     Jun 6, 2002
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    #27     Jun 6, 2002

  8. Because that would make sense. What a stupid question. :)
     
    #28     Jun 6, 2002
  9. i shouldn't even be responding to that. i don't know about you, but i don't think discussing ideas is a bad thing.
     
    #29     Jun 6, 2002
  10. Sorry, I meant it more as a joke.
    It sounded to me like all you were saying is, "geez, developing a positive expectancy style is hard work.." Of course it is!

    I agree. Discussing things is a great idea. Don't let my comments dissuade you.
     
    #30     Jun 6, 2002