Riding your winners and number of positions

and we're not in the Art Business...

nobody has proper balance..., however, if you can walk, and chew gun and sing, then, its a fair bet that you can handle 3 or more simultaneous positions.

ok, enough of the flat line humor,,,

the ability to handle multiple positions, simultaneously is in direct proportion to these factors:

1) your underlying confidence in the software platform, inclusive of dataline speeds (T1 or better)

2) the nearness of the chart (small format) to the Level I / II order entry box (inclusive of some analytical option; such as MACD on chart) )

3) dual monitor screen size configuration, so that you minimize mouse movement

4) absolutely no distractions, not from emotional branch managers, traders sitting next to you, or a growling stomach, hungry for lunch

Cheers

 

There is no magic to watching a few postions at once. Similar to watching your side mirror, rear view mirror, and out the windshield at once. The overall view is the same (market), the side mirror (stock A) is reflected on the dedicated quotes line (bid/offer last 3 trades or so), The rear- view mirrow (stock B) has it's own dedicated tape and reacts to the overall market the same way except that your brain must realize that there is a different variable (such as a different sector or news).

Personally, I never bother with individual stock charts since they tend to take my attention away from what I feel is important, and that is the size and pricing of each trade. I find that when I look for patterns in a a chart that I start "thinking" rather than "reading"...and that leads to all sorts of trouble.

Anyway, just something to think about.

 

Don,

So are you saying that you don't use intraday charts at all when you are trading?

Leland

 

When I am trading I focus on just a few stocks, and I know where they opened, where the price support and resistance is, where the larger trades take place..and I don't really need a chart for that.

I use charts for the Futures (tick and 10 minute), with a Prem/Disc/FV box next to it. I pull up a chart for a quick second if I want to check something out. I find that I do much better with just 2 screens to look at with as little "extraneous data" as possible to confuse the situation.

A couple of years ago "more was better" (more screens, more filters, more "stuff"), at least in the minds of some traders. But that has pretty much changed now, and the successful people have gone back to the basics of trading, and we actually encourage the use of only a couple of monitors with selected data.

This is still an individual sport, and to each his/her own....as long as they are making money...if not...then why not consider doing what others are doing well.

 

Don,

I am in total agreement with you in regards to limiting your desktop to two monitors or so. I just can't see how people can look at everything when they have 6 monitors or something crazy like that. I have enough trouble with two

I guess the old saying "less is more" applies to trading....

Leland

 

there is alot to be said about focus

 

Pair trading I understand. What is the intended meaning of the word "crutch" in the statement above?

 

Sounds like your doing well, $1.00 profits.I like to help the profits ride with 30 minute charts and more,5 minute entry,5minute exit,but still keep 30 minute or more visible[2]Price targets based on 30 minute and more charts,however dont use targets much when like NASDAQ trends 10&11 2001.Profits really ride then, i watch for that [3]You probably noticed lately those pullbacks can easily cut off profits like ''daisy cutters cut off enemy!''[3]Even a strong stock like TYC hasn't moved much more than 2.5% or 3% without pullback

 

Crutch trading is implemented when you enter one side of a trade, and that side stalls...so you "lean" on the other stock resulting in a pair trade. Most of the money is made in pair trading when you don't even have both stocks involved (merely take profits on one stock).