How do you avoid getting shaken out ?

Discussion in 'Trading' started by Sekiyo, Oct 27, 2024.

  1. taowave

    taowave

    What your advocating is much closer to investing than trading.Call it Swing Trading if you like.

    I'm with you on NO stops as you don't take on leverage. Where it gets fuzzy is you appear to leave room to average down when wrong.











     
    #41     Oct 28, 2024
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  2. jinxu

    jinxu

    It's good that you realized that.
    The market truly is random but this is the trick it is not 100% random.

    As a trader you need to figure out what part of the market is not random and develop a strategy to exploit that idea. For example,

    You want to buy breakouts.
    That's something that happens a lot.
    Problem is a lot of breakout fails a lot of the time.
    Then you need to ask yourself why do some breakout work and some doesn't?
     
    #42     Oct 28, 2024
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  3. SunTrader

    SunTrader

    The market is chaotic, not random.
     
    #43     Oct 28, 2024
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  4. Sekiyo

    Sekiyo

    I think I'll give tradestation a try because I can't get the stonks implied vol on tradingview.
    The only thing I could do is use SVIX as a proxy but you said Meehhh ...

    Thanks for providing a picture :D
     
    #44     Oct 28, 2024
  5. jinxu

    jinxu

    I agree and I think that means the same thing?
     
    #45     Oct 28, 2024
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  6. Sekiyo

    Sekiyo

    Curtis Faith (a former turtle trader) in the Way of the Turtle provides some statistics and it shows that using an initial stop erode the overall performance of several strategies. The strategies have an exit but not known in advance.
     
    #46     Oct 28, 2024
  7. Sekiyo

    Sekiyo

    Weathermen and Gamblers are almost the same.
    Sometimes they can't even predict the current weather xD
     
    #47     Oct 28, 2024
    birdman likes this.
  8. Sekiyo

    Sekiyo

    One big flaw of my strategies (here) is that they're always in the market.
    As you said it's not worth being always exposed but only when there is an edge.

    I think the question should be about the conditionals ?
    What conditions are there when a BO doesn't fail ?
    What conditions are there when a BO fail ?
     
    #48     Oct 28, 2024
  9. taowave

    taowave

    Yeah,Im certainly not saying one must employ stops,but if you do employ leverage one should obviously have very good risk management in place.

    Shaken out is what happens to traders without a plan in advance..

    One may sell the low,but if its was executed according to the game plan,its simply a cost of doing business.

    And one can always re-enter,assuming they arent too "shaken" :)




     
    #49     Oct 28, 2024
    Real Money and Sekiyo like this.
  10. SunTrader

    SunTrader

    You might think so, but they are not the same.
     
    #50     Oct 28, 2024