How do YOU come up with trading ideas?

Discussion in 'Strategy Building' started by slowcheetah, May 14, 2014.

  1. Keep in mind, we are likely dealing with old bored retired pensioners here. These gents don't mean any harm--- just take their words as dreams and fantasy. There are several on this site. Mostly hailing from AZ the land of the elderly.

    As you can see from above, self contradiction is rampant , just leave the old folks alone.
     
    #41     May 15, 2014
  2. Dunno why this forum now become full of pensioners or college kiddos. What happened to those traders trading in their prime age, we used to have tons of them around before the financial crisis?
     
    #42     May 15, 2014
  3. Visaria

    Visaria

    Just find trades which have positive expected value. Let's say you want trades that give you 3x your risk. Figure out a trade that has that technically on the charts (A) and then work out the odds of hitting that target before you are stopped out (B).

    If B is less than A, do the trade!

    (The rather hard part is working out B :D)
     
    #43     May 15, 2014
  4. lotto

    lotto

    Yes, it is. And the number of traders who trade with a plan is about the same as the number who consistently buy low and sell high.
     
    #44     May 15, 2014

  5. How do you know your gains before you enter to determine 3x risk? Seems like psychotechnical babble.
     
    #45     May 15, 2014


  6. Yeah, even Nitro has left for greener pastures. It's retired pretenders, and young third world type dreamers.
     
    #46     May 15, 2014
  7. Did Nitro leave trading?:eek:
     
    #47     May 15, 2014
  8. The man who "broke Atlantic City" wouldn't play until the casinos tilted the odds so far in his favor (due to their cash flow needs) that he knew he was almost certain to come out ahead.

    The same is true when leveraged price chasers get shaken out of their latest failed breakout buy and then capitulate en masse, all the way down to the SMA50 or lower trend line, where they meet the invisible wall of strong hands who have been waiting to relieve them of their pain :eek:

    There are many casinos, and some are just too easy.
     
    #48     May 16, 2014
  9. Yes, but don't forget that the "dumb" money is usually wrong but only at the end of an extended move...
     
    #49     May 16, 2014
  10. k p

    k p

    For those who cannot see the intelligence behind Db's words, here is a chart of yesterday. It shows the pre-market range, blue lines, the mean, dashed blue line, and the red vertical dashed line shows where 09:40 falls.

    I can't tell you what specific entry criteria he used, whether it was the break of the of overnight low, whether it was a rejection at the price level of 98, just below the mean of the overnight range, but no matter the reason, it set up the short. The rest was just waiting for it to, as Db said, reach the end of its run.
     
    #50     May 16, 2014