Millenium-Traders Really Use a $1 Stop?

Discussion in 'Trading' started by version77, Dec 5, 2001.

  1. bora


    Protrader, how long have you been a member of this chatroom?
    I have been a member for a few monts, the first few weeks i made lots of profit trading their calls, but a few weeks later i lost everyting and even more. When i had a losing day and i looked afterwards at their performance during that day they had no losers at all. When a stock went down 1 point(that's the stop loss right now) or more points( it used to be 3 points!!)and hitted the stop loss i got out . Then if it traded back up they would see this as a winner, and they did not mention the fact that the stock already had hit the stop loss. Conclusion: they let you know what to do when you have a "winner" , but don't tell you what to do with a "loser". But that's just my opinion. I think chatrooms don't work for 99% of the people, you should try to trade on you own...
    #11     Dec 7, 2001
  2. Hi Bora,

    What you say is simply not the entire truth. Any trade called that goes green by more than 12 cents before the stop (1 point) is considered a winner and reported as such. Those calls that go green less than 13 cents but do not stop out at the point are reported as flat regardless of the actual exit (presumably because the trader had the opportunity to exit at the original entry if he wished too). Winners are those that exceed 12 cents before the point stop, the trader uses his discretion as to where he wants to take his profits (or losses).

    However, if the call hits the point stop before it goes green greater than 12 cents then it is factually reported as a STOP.

    You are also only half right when you say they tell you what to do with the winners but not the losers. They don't tell you what to do with either! They simply call the entry and you do what you will with the trade, take as much or as little profit (or loss) as you wish. The only exception is that recently they have been calling more and more exits. I don't know the reason for this but they seem to be calling more exits as of recent.

    Isn't this called daytrading? In other words, you have to make the decisions as to what to do with your trade. They are not trading your account, you are. They're simply giving you potential setups, you are to manage them. If you don't do that in an astute fashion, you will get into trouble fast. Called risky daytrading...right?

    Are you a current member?

    I do trade my own calls, but as I've stated I like their setups and they provide me with two more sets of experienced eyeballs to divine the market. I find this useful.
    #12     Dec 7, 2001
  3. Turok


    >Called risky daytrading...right?

    Yes, that is exactly the tag I would give your description...risky daytrading.

    #13     Dec 7, 2001
  4. Turok,

    LOL....that's funny...LOL
    #14     Dec 7, 2001
  5. Turok,

    In all seriousness, daytrading is inherently risky, especially daytrading. But you seem to imply additional risk...would you please explain your position?
    #15     Dec 7, 2001
  6. Turok


    >In all seriousness,

    I was dead serious.

    >daytrading is inherently risky, especially

    Daytrading the way it's described at MT is certainly risky. I look at trading as a business venture and when approached correctly it offers substantially less risk upon entry then almost any other business. If I fail in the business of trading, I will have lost significantly less money then had I opened up most other businesses. Against this known risk of business failure and the relatively small associated costs, comes a reward that is greater in many ways (expecially freedom) than those of the compared businesses.

    >But you seem to imply additional risk...would
    >you please explain your position??

    Yes, they market themselves based on winning trade ratio and this ratio is based on any trade over 12c being a winner and suggest $1 stops on the losers. It doesn't take a lot of math to figure out that this is a "risky" ratio.

    Your results may vary (widely in this case).

    #16     Dec 7, 2001
  7. >"Your results may vary (widely in this case)."

    That strikes me as funny too. :)

    It's not that they consider every trade >12 cents a winner, it's that every trade >12 cents is reported as the difference b/w their entry call and the greatest possible exit price before the point stop, ie. +.24. +1.55, +14, etc.

    What problem do you see with this?
    #17     Dec 7, 2001
  8. Turok


    >every trade >12 cents is reported as the
    >difference b/w their entry call and the
    >greatest possible exit price...

    >What problem do you see with this?

    No problem at all if you can assure me that I will recogize the "greatest possible exit price" each time it arrives. If I can do this then I can acheive results comparible to the ones they use for marketing. If I can't, then I say the numbers are not just misleading, but out right false.

    #18     Dec 7, 2001
  9. "What you say is simply not the entire truth. Any trade called that goes green by more than 12 cents before the stop (1 point) is considered a winner and reported as such".

    I think this is the part I find hard to deal with. Who is going to
    let a stock go down .1.00 before they use a stop? I never do
    unless perhaps on a swing type play, but never a daytrade.

    #19     Dec 7, 2001
  10. Magna

    Magna Administrator

    Referring to daytrading (not overnight swingtrading), if you have to let a stock go down a full buck before you consider the trade going against you, then your setups and particularly your entrances are lousy.
    #20     Dec 7, 2001