Is there a proven method to win in Baseball, Football, Basketball or Soccer? In Baseball some teams have been good playing the Sabermetric way like the A's or the Red Sox, others succeed playing long ball like the Yankees, while others win playing small ball like the White Sox or the Angels. In Basketball teams that play the defensive Larry Brown style succeed while others playing an all attack way also win. No way to play has proven to be better than other, if you master your style and stick to it you'll be good. Same applies to trading, there are scalpers that make very good money, others don't. There are good and bad trend-followers, good and bad who play the reversion to the mean, others hedge, do pairs trading, etc. The markets are so wonderful that thers is a place for everyone. Play the way that fits your personality, attach to it, follow it and you'll be good.
Hey pope thank you for your information just wanted to ask you U had mentioned that When a position is going your way u add more and more shares to it aren't u afraid as soon as you double up the position might just change the course and instead of making it u could loose the profit and you could get a loss What would be you advice on it ( Usually when i trade i start with 300 shares and if it does good i take the profit if not then i see and wait for a while and then i average it with another 300 shares if the stock look very strong then i either average down and get out other wise i hold it all depend on the situation you know what i mean )
To average down can kill you faster than drinking Drano, I don't recommend it, but if it works for you it's fine. I usually start with 1,000 shares and on the way up add up to 1,000 more, sometimes 1,500. Unfortunately people are lazy and buy and sit hoping that the stock will start moving their way, what I do is to buy and buy more making sellers retreat and buyers move up. I like to lead the bull and always ready to run when the bear appear. I would suggest you to reconsider averaging down, it usually don't works. Please don't do it!
Hey pope thank you for your advice Well like said it all depend on the situation that is why i start a little. I know averaging down can be a killer as long as u use a certain time frame about he HI and low Well i will defitinily try your style for a change Buy 300 shares and then add 300 more I am a bull guy too Any other advice is always appreciated
K-Son, This will be my last post to you concerning your trading. I strongly recommend that you ONLY trade 100 shares per position until you show consistent progress. Not 200, not 300, but 100. Only increase your positions as you start grossing $50-100 everyday for a month or so. Then bump it up. Not before. Otherwise, I can honestly say, you are in for a world of hurt if you continue to trade like you do. I have seen dozens of traders come and go from my firm and I can tell you they all failed because they didnt build themselves a solid trading foundation first. I have 5 jr traders under me currently, and I make damn sure they learn how to handle 100 shares first before they step it up. Its up to you from this point on, you can either be a cowboy and see how you do or you can do yourself a service, take it slow and learn how to play this game the right way.
Don't let me be misunderstood, I also do the same thing on the short side, but unfortunately there are not many NYSE stocks that are shortable without the stupid up-tick rule. I never short those stocks because they have to up-tick to be shorted and if they up-tick the odds that they might go against you increase. I'm never afraid because I've very good intuition, some people will laugh about this, but I have it. I know when the bear is preparing an ambush. I've developed intuition through meditation. I started Scalping because I had limited bucks and scalping allows you to take controls of your loses, my plan was to make money as a Scalper and then use other methods that I thought were better. But after some time I realized that Scalping is very profitable as long as you're very religious in your stops. I like your quote that other advice is always appreciated, I'm always looking for the same. So let's educate each other.
Steve Tvardek is right, be careful don't run. I don't even suggest you to take your 300 shares right away, first take 200, then 100 and if the trade starts moving keep adding 100, then, 100 and then maybe 100. Play defense, solid defense like Larry Brown.
Well you wont beleive I was playing good and positive and was making Like $100 to $150 every day with 1 day lost $2000 which should not have happend but i learnt a lot from it I will do that no hurry of playing 300 to 1000 shares go with 200 try to be profitable Like some one said u cant play the game if you are out of the game
I have found a very good way to avoid having huge loses in a single day. is the strikeout rule, if I have three strikes in a row I stand-up, have coffee and watch TV for a few minutes. Then I start trading again, if I strikeout again I go out and light a Cuban cigar. Then I come back and if I don't see an improvement I turn off the computer and review my trading rules which I put down in paper.
Great thread guys...I have always wanted to develop some form of intra-day strategy....scalping would be interesting as well. I am a position trader now...and frankly the daily volatility is a tad rough at times :eek: A question for those who scalp, could you explain a bit what sort of entries you guys are using. Does not have to be too specific if you likely don't want to advertise how you trade, but just from a conceptual point of view. I have wondered if it is a sort of breakout strategy on a very short term indication, or instead if it is more of a range or chop strategy with more of a fading type of entry? Other than that do you guys use similar TA to swing/position traders, or is it mostly just reading the tape and the depth? Then again, if I am completely of base, heh, it would be great to hear what you guys actually do Chaos, that is what I admire about the short term traders....when they are good...their equity curves are just awesome! Do you have an idea of what sort of entries that scalper that you knew used?