%% Plenty of truth in your post,MrScalper. Long term trend of SPY/S& P 500 is up; but that is not a prediction.Good thing about trading ,,many made it after huge drawDowns/blowing up an account...................................................................................LOL
Very good advice. By doing so overall profit maybe lower but on a risk adjusted basis probably superior.
%% That's strange; + i mean that in a good sense. Thats the updated edition name ; original name =Daytrading Your Way To Financial Freedom. IBD founder noted it take about 3 years to learn to trade/Invest.NOT a prediction Good thing he did not name it= DayTrading My Way To Financial Freedom.LOL
%% Good points MrScalper; but US stock market has been upTrending for more than 200 years; of course one has to factor in 3 year bear market$...... [S&P 500/SPY /benchmark /bear markets like 2001, 2002, 2003.] SPY goes from $150 to $75, more than 50%+/ drawDown]. 50%+/ means 50% plus or minus. If one like roller coaster$ like QQQ, went from $120 to less than$20 = finally back over $120.Better than 80% draWdown . SQQQ dose well in a bear market. LOL. Frankly as good as the capital markets/US stock market has been over time, has paid to invest long term, but NOT a prediction. IBD neWspaper+ CanSlim System explains why US market has upTrended so well; not a prediction.......................................................................
When they say risk 1% of your account, it means for every trade you should not lose more than 1% of you account. Example: Account = $500 Risk = 1% $500 x 1% = $5 So for every trade you should not lose more than $5. When things go bad and your trade is down by 5$ then you should sell.
Good things come to those who wait! A fool and his money are easily parted! When the public shout buy, it is time to sell! When the public scream sell, it is time to buy! Some things never change
%% That is a worse case [-1%]scenerio, Robby ; most using that are using hi leverage/have to sell by 3rd friday.The math is right. CAN SLIM/IBD[cash markets] risks $ 7 or 8[ or less] to make $24, which i found much more profitable.But that is in the context of a 250 -450 page system.He even sells sometime if it goes outside the channel; but the big trend$ i like spend so much time downtrending or uptrending outside the channel i dont do that out side the channel close exit = almost NEVER........ He did start with $500; maybe $1000 in todays US dollars....................................