Is this a bad equity market?

Discussion in 'Trading' started by Nutzo, May 10, 2005.

  1. Not a problem. Many of the traders frequenting this web site have helped me in the past and continue to offer me their advice. "Paying it Forward" is the least I can do to return the favor.

    Based on what you've shared, we might reside in the same section - if not adjacent seats.

    Sure thing. Fire away.

    The system almost always dictates the exit. In the last seven months I have experimented with using various exit signals in an effort to improve profitability. MACD Histogram reversals, Stochastic Divergence, price targets and numerous other techniques have yielded mixed results. Currently, I use volume or time (end of hold period) as an exit. Occasionally, an exit results due to a trailing stop trigger.

    Other than shortening the hold period, I have not fundamentally altered the rules in the last seven months. I have slightly modified the culling procedures used to obtain the stocks in which I anticipate making a trade, however, these slight changes have resulted in an increase in the number of possible trade signals rather than improve the number of profitable trades. In other words, I get to swing at a few more pitches, but my batting average has stayed the same.

    Yes. After determining on which stocks to place my focus, I look for price and volume (along with a confirming indicator or two) to determine if a signal for initiating a position (long or short) is warranted.

    I appreciate your consideration with respect to public 'edge' disclosure. However, I have already posted 100% of the methodology I use beginning with the second post in my Journal. Due to the collaborative efforts of the many individuals posting their insights, I have slightly altered the culling process in the past seven months, as well as, improved upon the automation process. However, the fundamental theory behind the methodology has remained the same.

    I hope you find the above information helpful.

    - Spydertrader
     
    #31     May 13, 2005
  2. spydertrader has it right..you have to have to have much more of a system. Gone are the days of " gee GS is outperforming ,and if the spoos turn around, I will buy the GS offer". you have to have much more,and you have to be disciplined enough NOT to trade, if your criteria for entering a trade isnt met. Too many people had it easy for along time,which is why their are fewer traders around and firms continue to consolidate. More consolidation is on the way as the lack of vol and decreasing rates means the economics of running the business have been negatively skewed, altering the risk/reward of doing so.
    Bottom line is, try to make yourself as much of a machine as possible, think in terms of proabilities,and manage your risk. The rest is out of your hands.
     
    #32     May 13, 2005

  3. what do you do when you are daytrading a STOCK and you are hitting your points when a big fish arrives and starts knocking out pivots, then leaves and, you are left with garbage?

    alex
     
    #33     May 13, 2005


  4. Look at it this way. If this is a "tough market" for new traders and you are able to learn how to make any money, you should be in good shape if and when it ever does get good again. You aren't held back by having traded in the past and knowing how good it was. You don't know any better so you can take this market as it is (not what it was) and figure out what it takes to get going. I know a lot of traders that made money a few years ago and because of that can't figure out how to make money today.
     
    #34     May 13, 2005