After all the threads I see on, no matter how informative (I escp care for the psych. section). Ive found, after trading for eight years, the best strategy for me has always been this: buying pull backs in uptrends, and taking a couple smal profits, letting the remainder run with a trailing stop. and doing the reverse in down downtrends. I am doing this as a scalping strategy and have found that it is the only way to be "riding the wave". Once I have too much in the way of technicals, I tend to get analysis paralysis. Does anybody else concur? I also like to keep my market slightly off the inside market, jsut a MM would do for example in an uptrend, I may be willing to buy 2-3 ticks into a pull back and offer out on the way back up. the only time I dont do that is on a big volume spike, wher THEN, I would go to my technicals and look for signs of a reversal. Nobody ever went poor taking profits. Once you can be consistent with this. its just a mtter of putting size to it to grow your profit curve. I did this from '99-'02 (even in the bad equity markets) in CSCO and JNPR, trading on average 1,000,000+ shares per day. And now I am considering doing it in the BUND/Bobl markets. does anyone want to back me up on this? Also, does anyone use this simple strategy in those markets and how does it work? Feedback and comments are appreciated. dsguns1
Dsguns1: Good string! Just like "over-trading" I think there is definitely something called "over-analyzing." Both can be detrimental. What traders may really want to be doing is continuing their trading education, but, instead, may make the basic mistake of replacing ongoing education with over-analyzing. One of the best simple, effective trading strategies I have come across yet (found in this thread) is to purposely leave money on the table when you take profit. Brilliant trading tactic! Regards,
Find a stock that's doing what you want it to, ie. going up (or down). Buy that stock (or short it). When it stops doing what you want it to do, get out. A few incremental sessions of profit taking might help, or might just reduce your longer term profits. Secret of getting rich in a nutshell.
Try selling a boatload of S&P 1140 Calls on the futures, NAKED a couple of days before expiration . . . put the gun to your head, pray that Osama bin Laden isn't captured and pray the night before expiration that the S&P doesn't GAP to the upside, taking your entire account with it!
No, don't mind me at all. My intent was not to satire your strategy. I was just reading some Threads about ET's greatest trader of them all, James Stock/Romeo and how he continually sells options on the S&P Futures [NAKED[/b] going into the week of EVERY monthly expiration and he never gets blown away! No worries. Peace.