the gentlemen profiled at the start of this thread is clearly a compulsive gambler and not a trader. compulsive gamblers gamble, traders trade. there is a MAJOR difference. best, surfer
From: Trading Guy (trading_guy@hotmail.com) Subject: Re: A Daytrader's Story (reply to Bruno) View this article only Newsgroups: misc.invest.futures, misc.invest.stocks, misc.invest.technical Date: 2003-02-07 14:39:32 PST Bruno, You ask about my strategies. Aside from the initial daytrading early on (which oddly enough, was somewhat profitable), I have employed price crosses above moving averages (generally 1, 3 or 5 minute charts). Essentially the same strategies were used with the QQQ's as with the NQ/ES eminis. With the QQQ's I would trade 500-2000 shares depending on how "sure" I felt about the signal. Generally a price cross above a moving average I went long, below I went short. Crossing back the opposite way would mean an stop exit. The strategy I used more recently, which is a bit different, also incorporate stochastics. I looked at stochastic divergence followed by a moving average crossover (typically 15 SMA on 3 minute chart). I preferred the candle (I use candlestick charts, BTW) to close above the moving averge as opposed to simple move above it, then wiggle back down. If I start to see stochastic divergence and long signals well below a moving average, I go ahead and go long with the moving average itself as a profit taking point. I would pare say 1/2 the contracts and leave at least a little bit in the trade. One thing I hate would be to take it all out only to have it run up. I hate exiting trades (unless stop is hit, of course) because I would then have to then plan my next entry. I hope this is enough details on my strategy, if not let me know any questions. I would appreciate any input as well to see what I did wrong
i'd say that was his problem right there. 1/2 the contracts? i assume he was trading futures then. so, if he's not profitable, what in the world is he doing trading more than 1 contract? (and as far as his method goes, it doesn't strike me as too bad at all. i wonder, was he really as disciplined with his stops as he claims?)
More than 1 contract allows the losses to pile up faster, which allows him to wash out as a trader sooner, which allows him to more quickly move on to what he should be doing.
I think the word "idiot" is a little too strong. It sounds more like an unfortunate case of addiction! But I'd say that most daytraders probably have a case of that to some degree. And hey, don't most non-traders think traders are idiots? What bothers me in that story is that there's no account of any serious training or courses that he might have taken. If he lost all that money by thinking he could figure out the market on his OWN, well then that is all the more sad... Phil www.sp-levels.com
the MAJOR difference is that a trader feels no NEED to trade all the time . a gambler feels a NEED to be trading at all times particularly when he is losing. a trader does not have to trade, a gambler who is trading has to trade. best, surfer
Double DITTO that... emotional and mental "maturity" is one of the most important ingredients in trading the markets! Not only do many new traders not have it yet, but many don't even know what I'm talking about here.... when I use the word! It's not so much your chronological age as it is emotional, mental and spiritual "age" that serves one as a trader. When you mature more as a person you will be able to progress as a trader. Sound like some corny esoteric platitude? It's not. In few business/professions is your maturity quotient tested as much. I
if we can't call that the behaviour of an "idiot" -- whose can we? (i'd nominate myself here, but i just don't have the credentials ) if only he'd thought of sp-levels.com sooner he might have been saved... damn...