And when he does what your post say he should do, he will hold to his winners long and finally realize he is now an investor! He then quits trading and does investing which ultimately leads him to buying an index. All this time to understand and accept the meaning of holding long to a long index.
Holding a winner for as long as it's a winner does not make one an investor; it makes one a winning trader. You may eventually understand that.
Expectation is the right/proper word, technically in mathematics. However, personally I think expectancy (=expectation value) is better. http://en.bab.la/dictionary/german-english/erwartungswert Erwartungswert {m} expectancy value http://dictionary.reverso.net/french-english/espérance espérance de vie nf. life expectancy http://en.wikipedia.org/wiki/Expected_value http://www.amazon.com/Expected-Returns-Investors-Harvesting-Rewards/dp/1119990726 http://www.elitetrader.com/vb/showthread.php?threadid=174550
You ask questions all day every day, but you're not a consistently profitable trader, are you? (My guess is that you're not a trader at all, but that's just a wild-ass guess.) dbPhoenix has active threads that demonstrate very clearly how to trade profitably in a manner that automatically adapts to changing market conditions. It just doesn't get any better than that.
You are very bad at assumptions with me. I do not know why you do not seem to understand that there are people who understand what you think they do not. Winner great than (PercentLoss)*StopLoss/(PercentWin). Now let pull numbers from the imaginary world: Example: 0.6 * 1/0.40 = 1.5 So I can jump and repeat loud: you see if you let your win only be 1.5 the size of your loser, you go no where in this business! Correct, I agree. But if you let it go to $3, then you are winning! Correct, I agree! Lose 1, make 3 and if you only win 40% of the time, you are will be successful! Correct, I agree End of imaginary talk. Is this enough for you to understand that people understand what you think they do not? Another one from the imaginary: the key in this is to limit losses and put no cap on rewards? (you can say it in one word: call (option)!) What you write is correct in THEORY! People know the theory, they want what works and which is worth their time. PS: Run those numbers again, there might be typos in there. The point is that our friend understands that there are people who understand.
I was in his thread, and they were long Nasdaq100 at 3400. I opined that it was heading to 3300. It did it in that nasty one day sell off. I can repost what I posted there. He knows the story of the parabola/quadratic, and saw the right side of it on that day. Do not get me wrong: I like both of you (Nod and DB)!
From what I've seen, db teaches you how to trade. I had no idea he started calling his trades. I'm simply shocked that someone who states "Just exit the short when the supply line is broken and take the first long thereafter" bought the NQ at 3400 and never switched to the short side during 6-day move to 3300 (which, for some unknown reason, hasn't yet occurred on my daily chart). Wait, I think I know what db did! Although he's teaching day trading using a 1-min chart, when he went long at 3400, just a few ticks from the top (back then), instead of going short when the demand line was broken, he decided instead to utilize the professional trader's method of avoiding losses by allowing a day trade to become a swing trade! http://www.elitetrader.com/vb/showthread.php?s=&threadid=279904&perpage=10&pagenumber=1
BTW, NoD: I was surprised when you posted that you get paid for your time in the market. If someone makes money, it does not mean that the time spend in trading is labor/work.
I understand quite well that you don't have the least idea what goes on in the threads I sponsor. Not that I care. I just wish you'd stop pestering the people who are actually working, as opposed to, say, you.