Yeah, that's what I thought.....I hope you're making money with the strategy...and thanks for the kind words... Don
THEN WHY HAVE A BUY LIMIT? You are willing to go long ONLY when the price reaches your price, for example, the old high was 40 and you are willing to BUY (go long) ONLY when the price hits a new high, so you set your BUY LIMIT price @ 41. Otherwise, if you want to go long, BUY at the OPEN with a Market On Open order.
Don't you mean a "BUY STOP @ 41"? A buy limit order entered when the limit is higher than where the stock is trading will be filled immediately, no?
That's a stop order you are describing..... not a limit order I'm willing to go long if the stock is at 39.39 OR BELOW.... not above but..........I'm willing to short if the stock opens above 41.43 or above. Having a buy market order gives me no edge as I might not want to be filled with a buy order if it doesn't open below fair value and if it opens way above fair value I want to short it Think of it this way............using limits I'm fading the opening print If I used stops I'd be joining the opening print Robert
That's interestin that 80% of the stuff is going your way. Would your results be improved if you closed out (at a loss) the stuff that wasn't going your way? I know you like to hold on, and for you I guess that is working, but if someone was trying to emulate your style, would they still be profitable by closing out these 20% of losers early on?
If they were to copy me.........than they need to hold onto some of the losers. The guys who try to get out early on sell at the lows and buy at the highs. It's also impossible to hold close stops when you are in 20 positions. I'm not giving out all my secrets on this thread (what incentive do I have to water down profits) but I've spend an hour each morning making sure to get rid of trades that can kill me. There are common patterns I've discovered in my losers so knowing the risk is greater than the reward when one of these patterns shows up I remove it. Robert Tharp
Today was pretty easy, 3 for 4 +$603.... It seems that my friend, Mr. Tharp is keeping about the same consistent batting average....good job! Don
"Someone remind me after next week (I'll be in Denver for a presentatino on the 21st and 24th), and I will bring forward some new info about volatility plays, and how you may want to incorporate them into not only your openings, but your overall trading strategies("Bright Bands" if you will)." just a small hint.lol