heilbronner, I am only now prepared enough to start trading (w/$cautiously). (IMO) Having alot of experience in business, I have experienced unfavorable ventures... This is part of the reason I spent over two years intensely researching this endeavor. I have a great deal of respect for the risks involved, and why my respect totally extends to you who are successful. I haven't just read a few get rich books and called myself prepared... I have researched heavily all the aspects revolving a career of trading. My experience in business has taught to consider ALL possible contingencies and to have all appropriate exit strategies in place. Nothing can substitute the school of actual experience, which is why I spent such a great deal of time eliminating as many instances of "hard knocks" I might encounter going forward. How many of you can say you spent this much time attempting to prepare yourself for your success in this career. I have no intention of trading futures. I need to graduate beyond equities first. To me holding a position over night is more risky than not. Unfortunately we are living in somewhat of a chaotic world. If God forbid another 9/11 were to occur , I certainly would not want to be in the market. I absolutely love my KTM exc 300. 20 is my racing number. I like to race enduros and "hare scrambles". Thanks To All For Your Continuing Input!
I don't think the posts are being cynical. I think they're speaking from hard earned experience. Mmm, I believe what you'll experience won't be so much the stopping of failures but the experience of being whipsawed. Best of luck to you.
This statement ALONE makes it clear that you don't know what you are doing, despite your two years of backtesting and strategy development. Tigher stops will often provide you with greater losses, not less. There are a hundred lessons like this that you will only learn in a real trading environment. And you will need to accept losses (tuition) while you learn. With respect, you are extremely naive, and have no business at this point risking other people's money.
I just answered someone's reponse on another site where he referred to trading as "legalized gambling". I thought I might slip it in here as well... Oldsmar, IMO, I will respond. Risk! I feel that a gambler is one who only employs a basic strategy. Maybe a little more maybe a little less. A strategist is one who exhausts all possible means to accomplish a favorable probability to successful prediction. One who has considered all possible contingencies and their coupled exit strategies. Has fully enabled a thoughtful risk vs. reward practicality. would you categorize a casino operator as a gambler. I certainly wouldn't. the casino Knows that it has an edge over the "house" therefore they welcome their clientele with open arms. I guess It might also be referred to as smart money vs. dumb money(as the saying goes). JMHO.
gms and lindq, I don't feel cynicism is negative per se... It' simply constructive criticism which in depth is favorable. As far the stops go...This would only be used for my initial trade(s). I think I mentioned what I might use in true form. I am using this only to review the performance of my selection and how it reacted upon entry. As well as, for the assurance of my OPM provider who has read these posts. I explained to him that this was only for this purpose, because I would screen for low ATR/beta stocks to decrease whip. Now lindq that Was negative. I have seen your posts around, quite a bit , and therefore I guess you are in the category of successful traders. IMO there isn't a need for such a pompous response. No offense meant. I have noticed on these trading sites, that the air gets a little thick at times. There really isn't a calling for a lack of humility amongst "The Great Ones". I sincerely am not trying to be offensive.... just sharing a humble opinion.
You seem to have spent a lot of time *looking* at the markets the last two years, but it doesn't seem that you have learned that much about the basics... >I am using OPM so my results must be positive >right from day one. The best systems and the best traders in the world have drawdowns. If someone tells you different, buy their courses and videotapes, pay big bucks to go to their conventions and seminars and kiss your trading ass goodbye. If you think you must be positive from the start you are niave and not yet ready to trade by a long shot. >I think that at first I will risk potential profits by >placing the stop-loss right at point of entry (or >a single point below type thing.) Stop failures >in their tracks so to speak This is the classic blunder by those who are completely unaware of price action. Go back to watching the markets and this time pay attention. >I guess I might also be referred to as smart >money vs. dumb money(as the saying goes). JMHO. I can hear the sound of your "smart money" circling the toilet. You better dive in and save it quick. It's not that you don't know much that scares me...hell, I don't know much for that matter. It's that you think you know a lot more than you do. Credit to you for putting yourself out there in this forum. Listen to what some of these good guys have to say and get back to the drawing board. You can learn to trade without losing your ass - Get an IB account and trade a 25 (or less) shares a pop for 3-6 months is just one good way. Best Wishes
I definitely used a poor choice of words. I am well aware the impacts of drawdown. Forget about the entry price stop loss. With the exception of appeasing my friend I would never have considered it anyway. I am walking into this gradually. My two years have been well spent. I have as much knowledge going into this as one could. I think I've expressed an understanding of the great importance of risk management. Unlike cynicism, pessimism and sarcasim have no beneficial value. I'm sure that when they named this web site, they had know idea that it would impact and reflect some of your attitudes as much as it does. There something called tact. In relation to some your responses, you might consider to employ it. There's no need to induce friction. I believe my first post referred to friendly comments/advice. Just my humble expression and opinion.
Son, you are free to feel that the responses to your request for information are marked by cynicism, pessimism and sarcasim, but you are way off the mark. They are realistic, and you should be DAMN GLAD that experienced people here have taken time to give you a straight picture of the real world. They are trying to do you a good service, and from your responses you have most obviously failed to get the picture at all. Good luck. You're going to need it. P.S. One person who can probably give you a good start trading is ET member Walther. Why don't you send him a private message right now? You will probably find him real tactful.