That is good advice, Brandonf. In fact there is a fantastic human being in the next room who year after year has shown nothing but support in this effort. I don't know how many times I have announced that this is it, I have finally crossed over, we're on our way - only to fail again. Not once, not even one time has she thrown the words back in my face. Over the years I have lost several hundreds of thousands. Not to mention another 50 or 60 grand in data feeds. Plus maybe 25 or 30 K in software. Throw in as much again for books, newsletters, seminars, and the like. But she has never complained. Most of my adult life has been spent as a high profile, big bucks guy. I have known many successes, and few setbacks. But that all changed two years ago. My life changed drastically with the onslaught of health problems. My "hobby" has turned into one of the few remaining intellectually challenging outlets left to me. I have managed to stop the major bleeding. Basically because I take trading much more seriously now. It's not about the money, it's about being right, and doing it right. I am consumed with the desire to conquer this pursuit before they carry me away. Your suggestion is a good one - one that I will try to pull off. Thanx.
I hate reading about short skirts and other little cute patterns that claim to work and are only entry based. To me its a pure waste.. the real meat in any pattern system is not complete until the exit is established. So why does she have 20 entry setup and no mention of an exit on her LBR website? --MIKE
I beg to differ. The objective on the "short skirt" is 3 points. As for the other "20 patterns", well that's not exactly true. She basically trades retracements - stops and objectives varies based on the time frame. But let's be honest here. All systems and methods fail. And all systems and methods work. It is a matter of managing the trade that determines true success or failure. It is certainly not my intent to promote, defend, or champion Linda Raschke. I favor much of what she spouts because it fits my style and beliefs. If it don't float your boat, that's cool - no problem. But to call bullshit on her style is simply not fair.
Tampa I am sorry to hear about your health problems. You must still be fairly well off to take your trading so lightly. Maybe that is the problem. I recently found out that the company I was planning on retiring from is going to shut down in 2003. It has taken my "hobby" to a new level as finding a new career at my age may be a problem. Sometimes necessity is the best motivation. p.s. I can relate to what your saying about "conquering" this thing. It is the ultimate challenge.
Ain't that the truth! The younger Dudes have the dreams that I long ago passed on - usually the "get filthy rich" kind. At this stage all I want to be able to do is to compete with the best and the brightest, and leave with my shirt still on my back at the end of the day. If I can do that day in and day out, I will have succeeded.
Are you refering to exit strategy? That's the same point Trend Fader made. A 3 pt stop that you tighten after trade goes in favor, is kind of vague. Maybe a 3 pt stop for first 30 seconds, just to get you out if you're way wrong. Then a 2 pt stop, with 3 pt target. Just let it play out, very rarely scratching or closing prematurely. Or do you want to scratch a lot of trades? Dont know what the volatility filters or pattern recognition are that LBR refers to. But could you use them for the exit, to tell you when to hold out for 3 pt target and scratch the rest. Are you going to have a limit order already in when price gets close to target. Or is the 3 pts just a general level, using discretion when the price is near target? Can you wait on the exit, use a trailing stop, and get some big gainers with this setup. Will you build into a position and scale out it. Or enter/exit the whole position. These are just questions I'm asking myself as I try to develop a plan to manage my trades. And they seem to be on topic here.
tampa, i'll try to pour something into your soup here. ...could it be that the perceived flaws in discipline are in reality the consequences of the setup involving too much discretion?
My understanding of this setup is that the exit is generally at the previous hi/lo that your pulling back from. This is usually where I get out. I do not enter before it turns and my stop is over/under the turn. If you catch one early in the day I would let it run. Later in the day settle for your scalp. My two cents worth.
hmmm...I'm not sure I know what to say. I thought that Linda was very clear on the points you bring up. This is a method - a way of trading - not a system. There is a lot of discretion here. All I can do is tell you what my "rules" will be. I will enter with a limit order. When filled, I will immediately place a three point stop loss, and a three point profit limit order. For the time being I will trail the stop in half point increments. I will stay with the trade until the market takes me out of it. These are my rules, designed to fit in with my comfort and experience levels. Nothing more, nothing less.