i agree with you on the 8%, O'Neil has a stop where 12 hits in a role and his account would be wiped out.... Yes, i think 2 or 4 % is more realistic and less painful. Myself as a trader of the Es Futures i use what i call the 20% of the margin rule. So, say if the required margin on 1 contract is $500 (VELOCITY FUTURES) and each contract is $50 a handle, then the margin would be wiped out in a 10 handle move. Thus, if i use 20%, then a 4 handle stop and i am outta there. I try not to pick a trade if the stop is not within that area, using pivot points and moving avg crosses usually satisfies that requirement. I actually do not like to take losses over 6 ticks, but that is subject. Now back to women and risk as some talked about......I am a fan of tennis and golf among other sports, but tennis and golf remind one of trading since they are "NOT" team sports, these sports do not require doing the jig in the endzone etc when one simply catches a well thrown ball. These sports require also the mental individual having their head in the game. One or both of the William's sisters showed up at Wimbleton in what looked like black motorcycle queen's studded outfits. Now, "THAT" was a women taking risk... I mean how stupid can one get? The game progressed, Serena or Venus got some bad calls, A'HA, the risk was not paying off. The following trip to Wimbleton the sisters looked more respectable and within the accepted guidelines of the sport..:eek: On another note of tennis: MaryJoe Fernandez was the announcer (i think, i recall correctly) and a good female player was having just a horrible set and losing big time. MaryJoe used the comment: "This is really bad, this gal is much better technically and physically then her game is today, SHE is just a "MENTAL WRECK". Psychology is in sports as it is in trading.....
oops hit the send button too soon If you are talking sports a better analogy would be sky diving...thats taking a risk. You do need an airplane but once you jump you are on your own. You pick when to jump based on being able to read the wind currents...how you get to your target...using your skill with a parachute and pick how you want to land...hard or soft
Now sky diving is not for me......This guy is Chicken.... Now how about Amelia Ahardt (wrong spelling), i always admired her for being a totally gutsy women....I always have hoped with the technology of today they would find her airplane. but thats a mighty big body of water out there. She is always a hero in my book....
I don't know about tennis and golf, but I know running. To me trading and running are very similar. In running you have competitors, but the real battle is in your own head. You don't expect to come in first all the time, but you want to beat your personal best. To excel in running you need to develop a strategy, and know when to take a risk and push it, and when to hold back and let the pack go. Pushing too hard can cause an injury, forcing you to the sidelines for the season. You can't run every race, so you need to analyze the choices and pick the ones that best suit your style and skill. Preparation, control, strategic risk - sounds like trading to me.
Good one.... (from the last post about running.) Science is about numbers, we are about ourselves....
hi. interesting post. im a fat bastard and i was about to say exactly the same thing about pie eating competitions. you MUST pace yourself otherwise you will get indigestion or something and the other guy will win. same for hot dog eating contests too - for which i hold the national championships record of 142 weeners + rolls in 20 mins. the other guys lost because they put mustard, ketchup AND onions on their rolls which is dumb cos you dont get extra points for those. thats my edge you see - i skip the sides and relish. boy. trading has so many parallels!!!
Speaking of running. What's the dif between a midget magician and a female track star? Well, one's a cunning little runt...