7 tips to be a good trader

Accepting ideas from people that are unproven is very dangerous. The beauty about this country is that everyone is entitled voice their own opinion. I have mine and you have yours. My advice to you and others is if you want ideas; go to someone with a proven track record; such as... Ed Seykota, PTJ, Crabel, maybe even my buddy Curtis Faith(since you are such a big turtle fan, maybe even ask him why he was the most successful turtle and no longer trades the 55d Donchian breakout method).

PS. FWIW, I am very profitable whether you choose to believe it or not; but I can tell you that my banker believes it.

 

It's absolutely true. Not only majority won't be able to take advantage of whatever you tell them (even if it's truly valid information), vast majority won't even bother to do some serious thinking about a new info.
One of the character traits of an intellectual (not pseudo-intellectual) is curiosity. 95% of humanity is not curious about anything beyond the routine of daily life.

 

Although I disagree with fortuna's tip #8, this is a reference to an article in which somebody advises a "20-t0-1":

• A favorite trading story that I tell concerns a very successful trader. He promised to tell me the secret of trading success. Of course, my curiosity was piqued and I asked, “What is that?” He responded with a question: “What is the ratio of your largest position size to your normal size?” “Three-to-one”, I told him. He smiled. “Consider 20-to-1,” was his advice and his success formula.

 

hello

This discussion is becoming a bit strange, as is sometimes the case in forum when we don't know each other.


well, I gave some honest conclusions of my experience.

Just to go back to the ndx call strategy, take a look at it, it is certainly a very rare opportunity to make a lot of bucks.

With volatility around 14% for low ndx delta options, (this vol used to be in the past ard 30 to 50%) , u have a very low risk for a huge possible profit. I defy u to find me something more interesting. (of course try to find, I will be very happy to get some other ideas)

Anyway good luck in trading and talk you someday

 

==========
Thank you & Cnms2 for the money management clarification;
because without it ,as Cnms2 noted, risk of ruin is very high.

Yes there are a certain % % of men & women who process info well by feelings and some discretionary traders process info better than mechanical traders.

Yes ,can tell you some high probability trades by feelings or approximate time for paint to dry, by feelings;
however may want to GOOG or YHOO current temperature projections/institutional info for day also.


And merci/thanks,
looks like you may have traded for about 5 + years;
would pay more attention to 5 +[measured ]years ''feelings/discretion'',
than 5 minute feelings/discretion.

And some of the best questions are asked by new or experienced traders;
so 5 minutes could be useful in that respect.

 

hi fortuna - i appreciate your tips - with respect to your above comment concerning volatility, i have used the $VXO chart in my work (attached, using this as a quasi-proxy for $VXN, i don't have a longer term $VXN chart) - looking for example at the '91-'96 low volatility, extended period.. - do you have a specific basis for your anticipation of a significant volatility increase or spike by June this year (i.e. we are now 3 years into the low volatility cycle)? - or did you mean this comment as more of a general strategy, i.e. volatility will eventually return.. - thanks and all the best.

 

high volatility of the 1997-2003 is certainly extreme, and I don't think u would return to it very soon

However out the money call IV is too low for NDX on all metrics. too low against historic volatility, true range vol, past implied volatility in quiet period

U are right we could still be in a low vol regime for another two years for oex or spx, but ndx has integrated goog , has a strong percentage of very volatile stock like aapl etc...

If u agree with my scenario of big increase in the nasdaq in the next 6 10 months , it is nearly a free lunch

I bought ndx june 1900 call back in november at 4.70 at a vol of 13.75, right now they are worth 20 with a vol of 16%. If ndx goes up , vol can't go lower and u more through the smile.

right now to initiate new positions, may be better to go for sept oe dec option for non option traders

good luck hope it helps

 

no offense...

but do you have any idea why you are saying this... or do you just have nothing better to do. Even if you are correct in theory (or practice) to a certain extent- that it might be better to be mentored by a top performer - why do you sound so angry in your posts? What or whom are you angry at?!

(clue#1 look in the mirror)

My view about critics like you is this --- IF you got it figured out and its as simple and 'black and white' as you imply- why bother ragging on others. Rather be happy so many others don't have the brilliant insight you have gained. Just run with it bro.

GL in 2006. We will all look forward to your insight on the pages of ET.com throughout the year?


Ice

 

good analysis fortuna -

bonne chance

 

ok thanks, makes sense; however, i find the june expiry attractive due to the "sell in May" phenomenon (or april/may).. - all the best.