Old Trading Tenets hold up

Discussion in 'Trading' started by cashonly, Oct 3, 2003.

  1. cashonly

    cashonly Bright Trading, LLC

    This morning was a classic example of the old daytrading tenets holding up:

    "Let your winners run"
    "Close your losers"
    "The trend is your friend"
    I had one trader who jumped on the market long this morning in a BIG WAY on over 200 stocks. Any that went against him, he closed and he let his winners run until he finally closed out as the market turned. Endied up with a profit of about $10K (I know he's glad he had our capital at his disposal!)

    I also witnessed a guy have big loses this morning by NOT adhereing to these tenets:
    "The trend is your friend"
    "Be careful holding overnight"
    "Close your losers"
    "Don't add to a losing position"
    He came in short this morning with no longs to offset him.
    He kept shorting from the open.
    Instead of closing his losing positions, he added to them (that alone doubled his big loss for the day)

    So, keep in mind the basics!

  2. sprstpd


    If you had shorted SPY on the open you'd be in the money now. More than one way to make money.
  3. dbphoenix


    Depends on what you mean by "now". Without an exit strategy, the best entry in the world doesn't mean much.
  4. Yup. I'm the (or one of the) idiots that took profits too soon, missed the trend (got blinded by the train's lights, I guess) and ended up getting creamed!!

    Thanks for the advice, it'll be better utilized next time!

    "Please God, just one more boom. . . . I promise not to piss it all away this time!"