Interesting. Does the share market work the same as futures market? I can buy and sell on the same day if I wish? And lets say I want to buy a share of company X at $20 then how does that work with regards to margin requirements if I intend to hold for the long term (months)? If I put up $20 for one share does a portion of my account get locked into that as collateral? Coming from futures I have no idea how the share market works.
Random entries strategy will definitely give loss because the probability for hitting the stoploss is huge in trading because price always moves in wave life fashion, not in straight lines. The difference is a sound trader "times" his trade most of the time while a novice mistimes frequently. Suppose a trader has the skill to judge the direction of the price every time. But if he mistimes his trade then it will hit the stoploss before hitting the target. Hence trader must have two skills. One to judge the direction. Two to time the trade. And the strategy must reflect these two skills.
True of many posters. However, when it comes to definitions, especially in technical areas, I try not to roll my own.
Obviously NO!!! We don't trade this way. Also your questions are too general. You need to be clear and specific. Do not use the word 'tiny loss'. Many financial experts / writers like to make generic statement. It has to be quantified. You have to be very clear what sort of trading you are doing. Is it scalping? day trading? swing trading? position trading? Let's talk about day trading ES . If you set tiny loss of 1 tick, it is guaranted you will never ever earn money. Loss should be around 10 ticks per lot and don't tighten it till we can't breathe. If loss per lot is say 20 ticks, then that is suicidial. For scalpers, stop loss will be smaller perhaps 1 or 2 ticks. For swing and position trading, stop loss will be few tens/hundreds of ticks..
At or in-the money options with a longer expiry will also work . With potential benefit of convextivity.
%% Agree; except I'm not afraid of it, but respect it. Of course a surprise rate raise or rate cut can cause fireworks LOL. Good chart on S &P , bone,what you call master trend i call it a main trend. 200 day moving average or 50 week moving average[some use a 40 week moving average]works well to define a main trend [master trend] .IBD [investors.com]teaches the same thing. 200 day moving average works well to define a bull market or bear market; sometimes what i call a chop slop trend [aka barbed wire range ,an elite called it LOL] can goof us up . BUT ITS NOT rocket science But SPY,QQQ..... pays dividends; gold or silver is a whole different market......
Wow, hadn't heard Steidlmayer referenced in a while! Speaking of oldies but goodies, wonder what Covel is up to?