Haven't posted any strategy posts lately, Decided to help out in the land of desperates. 1. Practice Accuracy When practicing Aiming a gun, do you try to shoot all over the place or do you try to shoot in the dead center of a target? When you place stops all over the place, you are telling yourself its <b>ok to shoot the trees next to the target stand</b>. Are you retarded? Practice till you can hit the dead center. 2. Put yourself in the buyers shoes. Do you know why price jumped from $80 to $81? Do you know why price was supported @ $78 ? Do you know why there was a surge at opening in volume and price? Do you think your Moving average had anything to do with a buyer ready to buy 50,000 shares? If you were someone with a lot of money, what would make you rush to buy shares? Would you do it quietly? Would you do it at open? Would you do it at close? Would you buy when price is cheap? How do you know when price is cheap? How do you know when price is cheap relative to price will get even more cheaper (continue to fall) ? Why are you staring at your MACD indicator thinking some player is going to be buying based on your "momentum" indicator? If you had money would you buy if momentum picked up or would you buy if price dropped below a certain "price"? This is a start, lets see who's smart.
<b>TIMELESS strategies.</b> Are you rebating? Are you trading on specialists? Are you doing whatever and only making $100k a year? What will you do 5 years from now. 10 years from now Can you see yourself piking? Can you see yourself scalping 10 cents? Perfect the strategies that are <b> TIMELESS </b> That means it will work 5 years from now, 10 years from now, 15 years from now regardless of market/people/particpants/exchanges/ specific stocks. Something you can make a career from. Like Warren buffet always said, "Buy a company you can see yourself owning 10 years without ever selling" As a trader "Learn a strategy you can see yourself doing 10 years from now" ------------- Ineffiency/Opportunity traders, The only people that are an exception to this are people exploiting a short term inefficiency and making a LOT of money, like $250k , $500k , $1 M If you have found an inefficiency, congrats, milk it for what its worth. Make sure you get rich from it because it won't be around for long. If you have not or can not, focus on a timeless strategy. You do care about your future right? Ok thats all for now.
Cool, I would add a few points though...yes buyers are not slave to your particular indicators but when a trader has a harmonic confluence of well tweaked indicators the odds favor the trade. Ofcourse a trader must know the tape and all the bigger picture issues that come along with accurate trading. I guess your principle is well stated but a bit "off the mark." Unlike target shooting, the market has no bulls eye, there is no perfect trade because both the seller and the buyer can profit at the same time. There are billionaires who have made there money hitting the trees next to the "target", infact your odds of success are greater if you aim at the biggest target. Just some thoughts. Ross
Are you a billionaire? Can you afford hitting next to the target? Things to think about: A Bazooka can hit anywhere near a target and succeed. You have a plastic BB gun, Can you hit the trees and succeed?
Cool, Ur funny man...really funny..I'm no more a billionaire anymore than you are an olympic marksman, but I can do well hitting around the target. when my desired entry is 50 and my pt is 50.75 many times I dont get filled until 50.09 and I take profit at 50.49...Every entry and exit was off target but if ur trading size you can consistently do well...Thoses are the facts. Ross
Ways to reach your goals: #1 Almost giving up trading several times right before the important breakthroughs. Just like a chart, breakouts happen right when you least expect it. Only way you can succeed in the game is to be in for the long term. #2 Be sure you are on the right path/right method, Find a profitable trader and ask him to rate your system and trading IDEAS/CONCEPTS. Walking off into the desert of arabia and expect to end up in london. <b> No, you won't get there no matter how hard you pray/cry or try.</b>