A 70k bet that I can't make a 50% gain in 2009

Discussion in 'Journals' started by geez, Dec 21, 2008.

  1. AA48

    AA48

    Hello everybody,

    I was renovating my house,so I didn't have access to a computer for a couple of days.I'm trying to catch up now....

    Geez is doing just fine,altough,from what I see,his success rate is slowing a bit.That's natural,a system cannot perform the same way all the time....

    I have a comment on one of Geez's older remark,about getting too close to his target and then stopped out or finishing at breakeven.In any system,the most important factor is trade management.Much more important than entry,which can even be random.
    Now,when you design trade management,the first thing you have to do is to define the winning trade.A trade is not a winner ig it goes 2 ticks in favor,nor it's a loser if it goes 3 ticks against you.A trade is a loser if it hits your stop loss.A trade is a winner if it passes over your pre-defined level.

    Geez has decided to use profit targets and liquidate his whole position when the target is hit.That's fine.It's one way,out of hundreds,to manage a trade.Another theory says that it's impossible to find the absolute top or the absolute bottom.So,a good strategy is to liquidate half of your position early (profit target) and half of your position late (trailing stop).In any case,either strategy will work better in some cases,while the other will perform better in some other instances.Ther is no perfect way to trade....

    What all of us should think about is that when you are in a trade you risk money....That money can be your capital,or it can be your profits.The second case is emotionally easier,but we must not forget that our profits ar not money in our pockets.They must pay for our losses,our expenses,our commissions....What remains after deducting all these goes to our pockets.....So,we must treat our unrealized profits with care.We cannot afford to cut them short.On the other hand,we cannot afford to let them fly away....So,it's crucial to define a level whre the trade is considered as "profitable" and then have a method of protecting a portion of our profits,while risking some of them in order to achieve more profits....

    Good work Geez....keep it up!
     
    #1631     Jun 14, 2009
  2. geez

    geez

    Yes Mike, you are 100% correct!

    Oh, you are also right about the $200 max loss thingy too........
    G
     
    #1632     Jun 15, 2009
  3. geez

    geez

    6/15/09:

    MON Watchlist:

    LONG: aapl amzn v fmcn mrvl brcm
    SHORT: ndn ctxs dell erts wnr ko
     
    #1633     Jun 15, 2009
  4. geez

    geez

    6/15/09:

    11:08 600 AMZN BUY 81.31
    STOP 81.01
    TGT 81.91
     
    #1634     Jun 15, 2009
  5. geez

    geez

    6/15/09:

    12:01 2000 BRCM BUY 25.66
    STOP 25.56
    TGT 25.86
     
    #1635     Jun 15, 2009
  6. geez

    geez


    LATE POST 600 AMZN EXIT 81.91
    P/L +344. 33
     
    #1636     Jun 15, 2009
  7. geez

    geez

    2000 BRCM EXIT 25.86
    P/L +382.25
     
    #1637     Jun 15, 2009
  8. geez

    geez

    6/15/09:

    2:23 2000 RMBS BUY 18.55
    STOP 18.45
    TGT 18.75
     
    #1638     Jun 15, 2009
  9. geez

    geez

    2:36 2000 RMBS EXIT 18.77
    P/L +423.17
     
    #1639     Jun 15, 2009
  10. geez

    geez

    6/15/09:

    3:21 800 AMZN BUY 82.70
    STOP 82.45
    TGT 83.20
     
    #1640     Jun 15, 2009