"I can only suggest to those who are considing trading, to go through the process of understanding how their accounts will report out as they do intraday trading." What is the process and what are the steps on that process,if I may?
From what i`ve observed so far,99% of the members have no clue what the daily settlement is.I didn`t find(so far) any sort of an educational thread on this and some other crucial aspects of trading.
this should help you... http://www.aaec.ttu.edu/faculty/sha...re Notes/Lecture 2 - Mechanics of Trading.ppt
Thank you,Thomas for the material!Another question,if i may.Could you suggest a reading on the topic when the market moves one way whole day,with no delays?What causes it to behave like that? Thx
For the long trend see the topic "undervalued". (177, 223) For the short trend see the toopic "overvalued". (177, 223) When a market is in a neutral state the price formation is called "four o'clock drift." It is like a iine sloped as the hour hand at four o'clock. For your prior Question on how a trading IB and clearing house relate to the trader, see Larry Harris's classic: "Trading and Exchanges (Market Microstructure for practitioners.) Oxford University Press, 2003. It is a seven part book and it uses the industry standard vocabulary. The pages in ( ) are the Harris pages. 'How to Make Money in Stocks" by Williaam J O.Neil is a very important book for ajusting your trading attitude to top performance. Reading it a few times a year will keep a mental framework available to slot your other intellectual progress into. My first book was Magee 4TH Ed. A lot of the posts in ET serve to show the ststus of the poster. Basically everyone goes through a learning process. The fastest way is to ask questions. Another way is to develop beliefs from traditions. As you see plain Arithmetic has had a serious influence on people. Markets have a lot of players and they have "attitude". IB's and clearing houses do services and they get paid when the service is completed. That is their rightful attitude. Acounts get settled as in poker games. You turn in your chips and get a cash settlement after the game. When I play 21 I share my profits with the dealer at the end of the game and not round by round. Pekelo, Redduke,lucrum, Magna, Atticus, etc., are helping everyone focus on learning how the IB, clearing, and exchanges take their money for services. They may still think they pay for srvices at the end of the day, but the services are collected immediately, instead. EE does not talk about costs of trading very much. It is because the costs are neglible. For a 25 trade day my costs run around 10K. So Redduke is correct, my print of 8,225 gross does not cover my daily costs. For 25 trades 2 to 3 winners are close to what I have to pay out. I have negligible costs for trading. I paid 800 bucks to make 8000 bucks in a small amount of time. I do four pages of stats for each day. My log is five pages long and I print four charts to show the day. My "critical review each day is about one or two pages. I run five other yellow pads to take topical notes, if any. My hands and up to my left shoulder joint has noticable calcium build up from writing for 55 years. I resemble an experienced carpenter who has been swinging an Estwing for a decade. Framing may only take three swings to drive a nail but there is more to it than the 28 inch handle. How to get the average ET reader up to a minimum level of understanding market operations hasn't happened in ET. Pekelo. Redduke, and atticus all commented on the common reading errors ET members make when reading prints. I asked several people how to present trades in an understandable way; Atticus suggested doing what he does. Frenchfry said nothing. So I did my illustrations and learned that the ET memebrs could not read the illustrations and that they are happy to be where they are. Terrific. A lot of ET folk can have a lot of AHA's in the future, maybe. The two trades that combined to make the 8,225 had some subtleties that will not even be noticed. As of now they are called bullshit by those who are judgemental.
that is one of my favorite books.. http://www-bcf.usc.edu/~lharris/Trading/Book/ along with this one... http://www.amazon.com/Business-Knowledge-Trading-Exchanges-Professional/dp/095541248X
My mazochism overcame me and I realized it is not fair to keep Jack on my Ignore while I am posting in his thread, so here we go, he is back on my reading list. Hey Jack, here is the biggest problem. If you try to establish credibility, you have to have matching numbers. But alright, let's say I buy your settlement explanation. The problem with posting 1 day's result is that it can be your very best day of the month/year, and for the rest of the time you lose 5 times more. The only thing you established was that you probably have an account and it has some activity on it. (although I don't remember seeing a name on the account, so there it goes) So if you really, really want to please us (we are very pleasurable) why don't you post let's say a week's result where the starting account plus profits minus commission matches the ending account value? (And no deposits or withdrawals) If you need to wait for settlement to get the numbers matching, we will wait for an extra day. Deal? Of course that still could be just a good week, but I take a week's over a day's results, specially with matching numbers.... How do we know that on the posted day you didn't have 5 more trades were you lost way more than 8K? See the need for matching numbers???
Maybe we are looking at different charts or you live in an alternate universe, but I don't see what you see: Market fucking melted down. If you were long you got burnt. Care to post your Wednesday blotter? Today (18APR13) the open was short. My entry was @ 9:31:32 and my cover was @ 9:35:32. On my chart Tuesday, the 18th was a rally day and anybody who shorted the first 5-10 minutes got taken to the cleaners. Are we talking EST? Yesterday (17APR13) the open was long. My entry was @ 9:35:36 and my exit was @ 9:40: 32. Again, big freaking meltdown day, unless you are talking opposite way, you didn't make money long between 9:35-40 Of course there is a possible explanation, that you are looking at the charts upside down. That explains the confusion...
My ass negligible. 10% of anything is NOT negligible. For a 25 trade day my costs run around 10K. So Redduke is correct, my print of 8,225 gross does not cover my daily costs. Why are you bringing up a 25 trades day? Is that your average? (I don't know, just curious, you seem to indicate this) But if so, that means that you showed us a day where your winnings didn't even cover your average day trading commission cost??? And you say com. are negligible... The reason they are not negligible because you have to pay com. for losing trades too. So that ads up quickly, unless of course if you never lose. Care to talk about your losers? I have negligible costs for trading. I paid 800 bucks to make 8000 bucks in a small amount of time. The word you wanted to use wasn't negligible. It was imaginary...
One would think from wholly objective observation that Woodie's CCI has much more credibility than JH..... Woodie's CCI has been written about, as he has authored published articles and even books on the method of the CCI.... He has given lectures at CME. He has given Trade-Alongs at Traders Expo in Vegas. There are Pivots named after him in charting software. By any objective measure, Woodie's CCI is superior to JH's method. This can only be settled by one thing - a face-off against the two.... JH vs WCCI !