risk management is the most over-used, worthless word out there. a 10k account using 2 tick stops? great risk management? no. how about a 2 point stop? so arbitrary it's pointless. first, make sure you have 100k at an absolute minimum. then make massive bets, and do not trade more than 2 times a day. ideally, adding to positions and only trading 1 time every other day. scalping, or this day-trading mentality will ruin you. you don't buy 1k shares for 11 cents. you buy 200k shares for 45 cents. ok, back to risk management. risk 10% on each major trade. if you have 6-7 losers in a row, well, that's a clear sign to move on. good luck. make 100k on one trade last year.
Make sure the person posts calls live in real time or ahead of time and doesn't give you excuses or vague nonsense if you ask a specific question. Following this advice will rule out 99% of people right away. Also have a list at all the scam vendors listed in this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=212110&perpage=40&pagenumber=22
And also read this "how to spot a snakoil salesman" thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=244375
Hey, don't get me wrong.... please finish your work at Harvard, or any other school you choose. I have lectured at many schools, including MIT (never Harvard, sorry).... but have always pushed the smart young people to go ahead and make their lifelong friends, learn all they can, get the diploma - all I'm saying is keep a cynical eye to much of the "over analysis" that you'll run into. Look forward to hearing from you.... Don
Just a comment, if I may. The folks that I've either listened to, or had friends listen to, have proven to be 99% horrible. No credible person (licensed trader) is even allowed to make specific calls legally. They would lose their licenses. Good people and good sites tend to show YOU, the TRADERs, what to look for... not do everything but push the buttons for you. Some may disagree, but I have always "called them as I see them" ----knowing full well that most won't ever become Bright Traders - I just want to help anyone I can. FWIW, Don edit: I DO AGREE with you about "past posting" and other nonsense from those who post their trades. "Oh I meant 1325, not short at 1315, etc. all that crap" .... Don
I understand what you are saying but then you've got people like [insert name of well-known scammy trading "guru"] who claim to be doing just that, yet they've never made a call in real time... or posted an audited brokerage statement... or explained why their "rules" backtest with negative expectancy (usually these people say "backtesting is useless, I only care about the future")... and kick you out of their chatroom when you point out any of these things. Sometimes even former mods from their chatrooms come forward and say that neither the system's founder nor any of his "traders" were ever profitable. My favorite is when they post a chart after the fact with a trendline on it and label it as "see, you go long here when price touches the trendline" but at the time you wouldn't have known there was a trendline at that point because that point was the second touch!!!
Very interesting way for you to put it that I am essentially creating my own game in a way. I'm going to think a little bit more and get back to replying to this post, thank you.
The chase is always fun and always will be. The trick is to pick up girls right when they get out of study hall because they still are amped up and horny from the adderall they are taking. From my experience it works great, but I have a girl friend now, stability is key in my life right now.