answer this if you make money

Discussion in 'Trading' started by Gordon Gekko, Aug 21, 2002.

  1. i've been trading for 3+ years and i know entry setups are not all that matters. i know all about money management, etc. however, i still believe a good entry is needed.

    if you're a good trader, please give me your honest opinion of these 2 concepts.

    1-enter on extremes and exit when they revert to the mean.

    2-find strong trends, for example, both the 5sma and 20sma are sloping up. go long and exit on the first profitable close. if you limited your losses, it might work because you're going with the trend.

    i know i did not include how the trades would be managed, but i'm talking about concepts here. are you people that are making money doing anything like this? or am i completely in the wrong ball park?
  2. Gordie as sharp as you are, your post surprises me. The first scenario reminds me of Bollinger Bands which I do not use. Although it seems the multitudes do so I'd say that concept is right on.

    As many of the other guys know, I love the moving averages. I do use the 20sma, but not the 5. For me it is too sensitive and I want a bigger piece of the pie per trade.

    But that method is right on as well. Pardon me for asking, but it seems there might be something else on your mind. Probably not, old careers die hard.

    I know one thing for sure...
  3. lol can you elaborate please?
  4. bone

    bone ET Sponsor

    I know what you're doing, I shake you out, and I pick up the pieces.
  5. i don't use them either. in fact, i pretty much hate all indicators. price, volume, and a couple moving averages are all i use now.
  6. throw me a bone.
  7. I'm not even a volume much of a sin as that is. I run the most common indictors and MA's at the most common settings. I just want to ride on the bus, not blaze new trails.

    I had something else in mind earlier, I was wrong. Originally I was thinking there was an underlying trader psychology thang, but when I saw your "how do you express this post", I knew I was wrong. Oh well, I'd rather be sensitive and wrong sometimes, than callous and not ask.

    Still thinking about the extended price relative to the MA.

  8. this is what i'm talking about.. who knows if this guy is for real or not, but i have no reason to believe he's a liar.

    from ET member gnome:

    "Any chance of establishing a forum where traders who have lots of experience (20 year man, myself) and have made at least $10 Million could share "best trading ideas" in a constructive manner?"

    "OK, you start. Reveal your best trade tip. (And if it's got anything to do with Moving Averages, MACD, or Stochastics, I'll just puke!)"

    hard to say if he's claiming he's made 10 million or if he just wants ideas from people who have made 10 million......but anyway, i don't like macd or stochastics either, but what is this guy doing differently from everyone else?
  9. spoken like a true pit trader
  10. Hi Gordon,

    Can you clarify or give a specific trade example of situation 1 and 2.

    When you say...find a strong trend...your saying after something has been trending...then after you've identified something has been trending...go Long based on the 5sma and 20sma sloping upwards.

    Hmmm...can you upload a screen image of your chart to give a better image of what your talking about?

    Simply, it's much easier to deal and discuss real situations instead of concepts.

    Post an image and many will check and see if your in the wrong ball park :cool:

    #10     Aug 21, 2002