I've thought about this question for a while and it I'm not sure I have a tangible answer. I will attempt to answer it based on my idea of risk and the stop-out and reverse strategy. I tend to trade excess price points and I usually take the other side of the excess. This sometimes means quick and frequent stop outs but, I can rely on elasticity to work for me 80% of the time. The other 20% of the time a trend to new value is being established and I'll jump on (stop out and reverse). These are the riskiest trades IMO because the extension cannot be defined - these are also the most rewarding trades. I find the most risk exists when trading IN the value area due to the probable lack of good extension from any entry - i.e. good trades only exist outside of value (duh...). Also, more often than not I don't trade the first hour, I find it to be too erratic. That being said, I don't have a good time frame for ORB because I don't use that strategy (in general, I don't trust range values - they are there to be tested and broken). I don't know if I am making any sense here. Mike
Grob109, 1. I am risk adverse - same 2. Me = stupid. - Me = advanced but experienced expert status still to be obtained. 3. nasdaq stocks. - I prefer investing in NYSE , trade futures 4. I will only sell at extreme rallies, buy at extreme sells - This idea has massively changed. The old idea behind this is faulty. Moving against momentum for small rewards. It also depends on where we are in the channel for where I would be selling or buying. The foundation of the idea has done a 540 , In fact selling/buying at extreme is more risky. 4. "once I hit the "buy" button, it automatically steals my money" Nobody steals my money now, I take theirs. 5. Stops: 0.3% Even less now, Much more precision. 6. I only allow myself 1 or 2 trades a day, 1-2 stopped out trades. If I get conseceutive breakeven trades I can keep trading. 7. Goals: 1-2% each trade , Month = 2-3% a month It fluctuates, I'm planning on swing strategies and I'm planning on short term stratregies. Looking to make much mor ethen 2-3% a month. 8. I'm here for the money, I will under no cicumstances mess with myself and do dumb things Always. $$$. 9. Considering Me = stupid, Thats a mighty task for a youngling like me. Not a mighty task anymore, Close to finish line. Good logic skills and hard work pays off quickly 10. Time to walk the treachrous path. still walking. Currently training to run the marathon. Soon to be running the marathon. The trading market is very interesting in fact, I believe almost all tools/ideas work to the extent, just like there are different ways to cook egg. You can cook it anyway you want, but to perfection 5 star style requires more skill then your average apprentice. A pan and spices are still used for both class of dishes. But its how you use it that differentiates your amateur from your pro. Right now, I'm working on channels, in fact it is very important to know where you are in the current channel in the market. Which knowledge of the position you are, you can fluctuate your position size to maximize high reward, or miniimize size to follow lower reward higher risk trades. another interesting thing I find out is, price, volume, action, its so important to use them together effectively. Because when one is starting out, he would find techniques in price, but forget volume, find volume but forget to use price. Find new price techniques and totally disregard volume, but later add in volume and you come out with something really special. In fact, I believe that is what most successful traders go through, After more and more practice they can use both their arms and legs, and that is when you become an expert in your game. Another interesting thing is there is no noise in the market. Everything is so static and not random that it intrigues me. Everything happens for a reason, and can be predicted to one extent except prediction isn't 100% its 75% 25% So 25% can happen always. You know, I've been working on trading for over 12 months now full time, with breaks in between (work on other business) , new ideas popping up after my mind clears up, It almost seems unreal sometimes to put everything together because the stock market is like a puzzle, a 100 piece puzzle. you know you can always put 5-6 pieces together no problem but to put those 5-6 pieces with the other twenty 5-6 pieces requires much logic analysis and testing. But make no mistake about it. I'll be making 100k months soon and that work will pay off handsomely. I think a big advice to everybody trying to really understand how the market operates, everything you learned, keep it in a notebook, while it may not work now , you need to keep adding to what you have, because it'll come in handy later. like a christmas tree, might come with all bullshit shiny lights and shit at first, all useless, clear it into barebones, and add from the bottom up. I think people like livermore didn't even understand exactly how the market works which is why he blew up. People like JP morgan/ ED seykota / PTJ / Pit traders who transfered into screen traders successfull know every single risk they take. There is no way you can ever blow up in the market if you understand it to the T. I'd probably get nickeled and dimed to boredom at worst. The foundation is there, now is the refinement to perfection. I like this game.
Thanks so much for your consciencious and comprehensive reply. The picture of the 100 piece puzzle as being comprised of many sets of 5 to 6 piece groups is very astute. By getting each 5 to 6 piece group down cold and at a point where it has high utility, is super commendable because it definitely builds the brain matter on two levels: getting streams operating and bundling those streams so shortcuts from one segment to another can fast track thinking. 15 to 20 groups that form your total puzzle will come into view as partials at first in unusual orderings. What is very prime in your viewpoint is to be able to accept these possibilities for use. The fact that you come and go occasionally because of other demans, primarily is an excellent climate to be in. When more and more people come to the conclusions of how to get to 200k as an stepping off point for doing trading as a component of their life style, the trip will be made much quicker conventionally. The example of fast tracking up to wealth is a good one to know about. I use 8 doublings of money velocity as my guide when I check in on others. At SAT we are going through the impact of cash flow of doubling salaries of those coming up to having a years experience. One of the new streams of revenue that is almost passive in terms of costs will accomplish this by a simple twist of providing stamped envelops for certain borderline marketing objections. Also we have approved SSa for giving us as references instead of 501 (C0 (30's. They are stationing staff at pharmacies on weekends and their referrals to 501 (C0 (3)'s are deadends that bite back more than filling the seats at SSA offices. We put a group of pieces together to have a 15 minute solution to the public quest. You do the same with the puzzle you are now conscious of. You can see 100k in front of you with few groups of 5 or 6 in hand. It is not a linear summation it is exponential s you are seeing by now. 1 k a week is 50K a year. 2K a week is 100K a year. A day for 50K is 200 bucks Taking 200 bucks to 800 bucks is not complex. Again thanks so much for your informative response.
I got your point Mike... try trading the first 2 hours when you day trade and see how your PNL changes. Usually, what's the most uncomfortable/hardest thing to do is the most profitable trade
[13:07] <coolweb> short 10858 [13:10] <coolweb> stop 10858 [13:10] * NihabaAshi sets mode: +v coolweb [13:12] <coolweb> ADD 10856 swing but not great entry , missed out mornings made a few points earlier.
[13:30] <coolweb> Shorts NQ @ 10856 [13:31] <coolweb> this server is poo [13:31] <coolweb> GOodMood: I think we are the only two on poo servers [13:32] <coolweb> this market is going down [13:32] <coolweb> who's going to sing silent night to him [13:35] GoodMood "Stille Nacht - Heilige Nacht"
LMAO!! You actually want people to believe in your trading prowess when you can't even get the symbols right? This isn't the first time this has happened, which further convinces me that all your posts on this thread are bogus. Let it go, coolweb - you've done enough damage to your reputation.