Thoughts on timeframe and scalability and extremes in business. The right mindset: If its not scaleable, its not worth doing. If I can't put 20 million$ on this trade, I won't take it. If I can't eat a lb of salt and not die, I won't eat an ounce of salt. If I can't snort a kilo of coke in one sitting, I won't snort any. If I can drink 4 gallons of water and not die, I'll drink water. If I can eat 10 lbs of oranges and not die, I'll eat oranges. If I would put my mother's ira account on this trade + my trading funds complete capital + OPM on this trade. I will take it. 5 minute chart is not relatively scaleable. day/week charts are. Predictable factor , week chart > day chart > 240m > 5m If I'm putting down 10 million, (would I look at a 5m chart?) Some people would take large risks to make 100% , but on a $20k capital. If you have a 2-3 million trading account. 8% profit per trade is $220k I just have to pick my entries right, 10 times a year. I don't have to blind myself staring at the screen 8 hours a day, I just have to be patient. ======= Mistakes. I can pike around for tick gains with the same trading method ( a good method works on all timeframes, in every country, in every market.) , but to lower the amount of decisions i make per year = lower the amount of mistakes/commission I make. =====================
application of big money on trade theory right mindset: would I bet 20 million long and my mothers IRA account on ES here? If not -> don't be in the trade if yes -> stay in the trade. /add more! wrong mindset: can I make 8 ticks on es here on 1 contract? if yes -> trade.. , then trade again.. then trade again if not -> find something else to trade man, must be something! GOLD , CL , OIL , 50 markets , no way I can't find something, something MUST be moving man.
dangerous to short or long here, long = possibility of being longing on the top, this is close to the top short = possibiity of creeping up more till you puke it out this rally can go on for a few more days, even this whole month trend is up, but there is no ways in hell i would put my mothers IRA account on this. market can act irrational (not right or wrong), but we only trade the things we 've seen before. Don't get caught up with the rally hype, in due time it will die down and the time to enter will be seized. I'm also looking to go long as well, but not at these levels. this would be the level where people short, <b>but shorting on the top is dangerous, period. </B> do nothing when its not your trade, your job isn't to be in the market at all times. Its to manage risk/reward.
You are right. It's best to just sit out and wait for the right opportunity to arrive. Sooner or later, the market will dip and that would be the best time to consider entering into the market.
You have been trading full time for 6 years and take one trade per month?!? Are you kidding? Also if your trading history is based upon 1 trade per month who in their right mind would invest with you without a statistically significant track record. Also who in their right mind would give you 50/50 on profits? You do know that people who aren't in their right mind have no money. Good luck to you anyway.
If you've been around long enough (i.e. on ET for a few years), you've likely seen Coolio's random attempts at sounding credible... LOL, you beat me to the punch flip, nice.
LOL - sorry... "Coolio" was Coolweb's nickname a few years ago after he got spanked by a few of the more senior posters for paper trading and not admitting as much, and, for just kinda makin' stuff up in general too. We need a new nickname here... Hopefully things don't turn out like they did here: http://www.elitetrader.com/vb/showthread.php?s=&threadid=50754&perpage=10&pagenumber=62 That thread was brutal... ouch. You sure you want to go down this road again Coolweb?