Stairway to Paradise

Discussion in 'Trading' started by Cheese, Apr 4, 2004.

  1. Cheese


    Stairway to Paradise by Gershwin
    "I'll build a stairway to paradise with a new step every day."

    The plan I use is a zero sum model to exploit index futures, specifically the DOW.

    Now most trading is from the institutional and commercial players which must leave tons of room for the individual online trader to be a winner if you are not already a consistent winner.

    What is your trading rationale or framework?

    Are you taking or do you still take a new step every day?

    In your opinion where are you on the stairway for reaching your aims? How do you compare what you do to others? What is it you like about your particular approach? What is your major problem if you have one? What market or markets are you in? How did you develop or learn your concept?

    How would you characterize your plan, model or approach currently?
  2. After having two successful strategies in the past that no longer work, I have been on the same step for several years now.

    How anyone can make alot of money daytrading stocks, right now, is beyond my imagination. I am a break even trader and last year all the money that I made swing trading, I lost daytrading.

    I have one or two different day trading strategies every week. I'm retired and if all I did was swing trade, I wouldn't know what to do with myself.

    My whole hearted admiration goes out to all of you successful daytraders out there.

  3. What is a zero sum model?
  4. Cheese


    Roberk, as you'll be aware zero sum mechanics/dynamics have been debated on ET before .. although it does seem to stir up controversy!

    But one short answer is that a market returns to zero with gyrations around that theoretical zero. Or put another way the move sizes of the major gyrations each day add up to a greater number (and often a far far greater number) than the net trend monthly, weekly or daily.

    So obviously exploit the major moves (gyrations) rather than the trend .. many more points to exploit.

    Of course, nothing wrong with trying to utilize the trend as most traders appear to do. Each to his own.
  5. :confused:

    Well.... if you use a zero sum model and all the institutional traders are making the plays and money...

    You're planning on being a loser?

  6. Cheese, could you be more explicit.
    It sounds like looking for tops and bottoms of the range? How do you judge these?
    I'm pretty pathetic as a trader so am here to learn.
  7. Cheese


    "Well.... if you use a zero sum model and all the institutional traders are making the plays and money...
    You're planning on being a loser?" Galt the Dolt

    Such wisdom! Oh the logic! And the detailed foreknowledge and experience .. really handsome, man!

    Zero sum playing is very effective for the individual player. Do it or don't do it. Each to his own.
  9. ==========================

    Hoodooman ;

    Interesting pattern, i noticed that years ago also;
    that i was giving up my swing/position trading profits when i did shorter term more active trading.

    As far as ''if all i did was swing trading i wouldnt know what to do with myself;
    ever thought about the meaning behind the name''Chicago Research & Trading''???????????????????????????????????

    In particular the ''Research '' part of the name;
    in particular like Marketsurfers preschool son said ''squiggly lines & numbers''

  10. Murray T

    Thanks for your reply. What sort of research do you recommend?
    #10     Apr 5, 2004