I am going to start a thread discussing some of the trading lessons we learned in writing our latest book Millionaire Traders - How Everyday People are beating Wall Street at its own Game. http://www.millionairetradersbook.com/ Before I get flamed by everyone know this: 1. Yes I have full permission from Baron to start this thread and mention our book. 2. No I am not going to turn into an Anthony Robbins wannabe and hump this book endlessly on Elite. Much as I would like everyone on Elite to buy it and much as I think it makes a fun a compelling read. I'll leave the judgment up to you and won't post any more links on the thread. Rather I would like to start a discussion about some of the more interesting nuanced ideas that came out of our conversations with these twelve guys.
OK so here is the first point. Are you a market maker? or market taker? Know the difference or suffer the consequences. Market makers basically trade reversion to the mean. That means they commit one of the cardinal sins of trading - they AVERAGE DOWN. That's right - that one of the dirty little secrets of the pros. They often add to the position because as Chuck Hays one of the best traders in the book notes, it's almost impossible to time it right on the first time. The key of course is to know your uncle point. Ultimately EVERYONE takes a stop. Trading like a market maker does not mean you have no risk control, rather that you are acting much like an insurance company -taking in many premiums (frequent wins) and occasionally suffer a big loss that will hopefully be offset with all of the small profits accrued. These guys accept the fact that once or twice a month they may lose 2 or 3 days winning in one trade. That what makes them a success.
One comment and one question. "twelve people who started with as little as $1,000 and turned those modest stakes into a six- to seven-digit fortunes." 6 figures doesn't make a fortune. Second, What makes your book so different for the dozens of other books that interviews "top" (I use that word loosely in this case) traders?
I remember seeing an e-mail from FXCM about Kathy and Boris doing this book. I think I will get it. Who knows may be something interesting will turn out.
<i>"so your spamming your book here? do you have permission from Baron to do that?"</i> Were you one of the 9% boys who had/have ADHD gone untreated?
Let me go out on a limb here - you really are infatuated with Jack the man, ya little Brokeback Mountain internet cowboy (It's OK, you can tell us, we are all very openminded and accepting here) PS - Ya pulled your PM permissions - wazzup w/ that? We're not gettin wimpy now, are we? Hahahaha - ya gotta luv 'eem