Here is a message I recently recieved. " Re: Truth about Bright Boot Camp Please don't mention me at all. This is all from my friend who attended the bootcamp who told me about his experience. The opening orders are slightly profitable for him when he holds his winners and stops his losers but that is not the way it is taught. You may quote this then, FACTS 1. They are only trading 100 share size starting 2. They are paying 1.25 cent per share 3. Only about 25% or less are profitable if you include commission 4. You are told to take 4 cent profit and 10 cent stop. With 4 cent profit, 2.5 cents go into commission so 1.5 cent gain. When you have a 10 cent loss, it's really 12.5 cent loss. So 8 wins and 2 loss = 12 - 25 = -13 cent loss After you pass series 7, then it's 1 cent a share. So 8 wins and 2 loss = 16 - 24 = -8 cent loss And during this time, you have a $400/month desk fee and the course fee." Just wanted to let you know about the openings. Why would someone give away a trading method that worked?
So all the other people here posting wins using it are making it up? And, are they giving it away if they charge for the training? Also isn't there a large universe of equities to chose from to use the method, so profitability could depend on your subset? Do they always take a 10 cent loss or is that just a crash stop and they are taught to get out when certain conditions are met? I don't know the mechanics behind it, but see others posting profits, so I have to ask.
Your numbers don't lie....to make opg orders work you need to have a better rate....make more on your winners...and manage your losers more effectively.
Naysayer....Basher. LOL. Indeed a virtually risk-free commission generator...quite ingenious actually...but hey, out of the goodness of their heart and for YOUR benefit.
Agreed...only it's often tough to manage a loser much more effectively than giving up ten cents (unless it's a REALLY thick stock). Can easily be down 10-20 cents on the first few trades after stock opens on a shakeout. Got to decide quick what type of action you think it is (tape read) and what to do (hold, bail, buy/sell more?)...comes down to trading skill and risk tolerance....also what your other fills are doing. If I'm up substantially in my other positions and playing with house money, so to speak, I might let it ride a bit more if conditions seem favorable. hard to know though...play it by feel. Today, for example, PRU opened 58.71 down .33 on 45K. Next trades are about 1300 shares total down to 58.65 (15 seconds) then 8100 at 58.25...never had a chance. Luckily got some on trade through via bracketing. Stock back to 58.70 within 3 minutes.
Have you noticed more than the usual occurrences of these types of shakeouts lately or is it just me?
I think it's pretty much a constant. Many specialists often move stocks dramatically on relatively small volume if book is wide open and they get the chance (fair and orderly...are you listening Spitzer?) Best you can do is try to piggyback on their rapes because it sure sucks when you're on the wrong side. Definitely need to take these eventualities into account in your trading plan vis-a-vis capitalization, position size, and risk tolerance. This is the value of having some sense of the trading patterns of particular stocks and specialists...only comes over time (many fills) and trial and error...use smaller volume on new candidates and bump it up with positive experiences.