Took a 50% hit. Time to see how long it takes to make 100%.

Discussion in 'Trading' started by athlonmank8, Nov 6, 2007.

  1. Well looks like the bottom WAS in fact in. Dow saw a healthy 600-700 point rally eventually.

    However I dont think it will last.
    #41     Dec 1, 2007

  2. INFA....long ended up well (more on this in a bit) on the market reversal. Up about 15%.

    CHDX retraces some of the losses (sort of expected this) however it did take a nice fall.

    HAL came back some as well.

    Update on the trading. I continued daytrading stocks and nearly blew out the account.

    HOWEVER, because of this post I realized that this system actually would be more effective for options since I can #1 leverage my position and #2 limit my losses considerably.

    So I took a 17.50 call on INFA and have done well on it as well as an SDS put for the market reversal.

    The next option im buying is the AMZN Jan 80 put.

    I now realize that any money I put toward daytrading stocks will be lost entirely. I like my system but I dont think Im good enough to use it for stocks.

    However, the ES is a different story. I've mentioned this in another post. (trying to pick ET's brain in the process).

    In conclusion I will not give out info on this "system" mainly because I know it has it's flaws in stocks.

    However, I do feel that it provides a nice edge which used appropriately so Im applying it to swing trades on options and probably going to move back to the mini's.

    Anyways, just want to wish everyone the best of luck. Been here for 8 years and not going anywhere until I feel as though Im "there" (15%).
    #42     Dec 1, 2007
  3. INFA..holding well. Not in, but expecting some new highs on it.

    Tweaked the system a bit. I now realize it was semi- doomed from the start for daytrading (which was what I did heavily). Position sizing was a HUGE issue that I didn't have a solution for until now. My CROX blunder was a mistake that this could have corrected.

    Risks will be reduced substantially (although I think options was a good way of taking care of that.) Position sizing will be in 3 stages. ~ 30% 60% and 100%.

    Reworked the "indicators" and we're back ticking again.

    Sell signal on AMZN and the SPY today. break of 95 on AMZN sends it straight to 100 however.

    GL trading guys. Will let you know how these puts work out.
    #43     Dec 7, 2007
  4. INFA, just a hair off those new highs. GL anyone holding. Roughly 16's were where I picked it up on the scan.

    Market also held the trend-line. Looking for a continuation Monday on this.

    Overall, INFA proves that this system is still working well. HOWEVER, the way I was previously trading it was flawed. INFA was a 100% position size, where as the HAL trade should have been 30-50%. So those who tore me apart actually ended up being correct on this lol.

    Most of the trades have worked out. However, the gains were erased on 2 of the three. HAL was the exception, and luckily that was one I played.

    In addition, my position sizing was incorrect for the trades. Those trades should have been traded at a fraction of what they were. I've got a scale of ~ 30%, 60%, and 100% on position size, based on where we are in relation to trend and movement.

    The stop system is a very nice compliment to this. In addition, with the fractional positioning I can now incorporate an "add" to each profitable trade which should compound gains.

    Wish I had done this sooner.

    Rest of the system is still the same and really works well.

    Best of luck everyone
    #44     Dec 7, 2007
  5. INFA new highs. Theoretical trade would be stop triggered 17.1 on this. Long re-triggered @ 17.5. Trailing stop engaged on it as of now.

    Just a paper trade.

    Side note: Not touching anything as of right now. Although, I really like how these have worked out. Also, it's really tough to build up enough confidence to play something that I created. Feel like I'm too dumb to follow anything like this based on my performance a few years ago using discretionary.

    I may have to pay someone else to do it :(
    #45     Dec 27, 2007
  6. Alright gave it one last try today. I've finally got it nailed. Got past the "freeze" hurdle of not being able to take the trades at the levels I want. Pretty much forced myself into doing it (on very low sizes at first). Surprisingly the account is up 4%. The only surprise is that the win/loss ratio was 10 winners and 13 losers. (out of 23) I still dont get it. The win/loss ratio got worse but my upside got better. Totally the opposite of what I had before. Had more winners, but my losers were enormous.

    Today was probably the most boring day of trading I have ever had. I didn't have to struggle over positions like I usually do. It still feels kinda wierd. Almost surreal.

    Overall not too bad. I really see no reason why this cannot continue. I'm keeping a constant eye on the SPY chart to see if it will work there as well. So far so good. Hopefully futures are similar since I dont have a feed (stopped trading them about 7 months ago due to losses).

    Im kind of disappointed however. This kind of trading seems to soak up a considerable amount of time and Im not sure if options are going to be as profitable because of the win/loss ratio and possible time decay. I miss the days starting out where I was able to sit on my ass and watch delayed quotes tick by on Yahoo! in fractions :). Ahhhh the good ole days. (the reason I want to do this using options).
    #46     Dec 27, 2007
  7. + 2% today. 9 for 11 profitable. 2 days in a row now.

    Hard to believe anyone can do this using discretionary methods.

    This should set the new trend for my P&L.

    Largest gain was (4.54 x the largest loss).

    Kind of funny how well this system/strategy works.

    Eyes are killing me though.

    From the entries determined by when the market is weak/strong I create/find certain predetermined levels where it's expected to trade to.

    The fixed/trailing stops are then applied and it just rolls from there like a well-oiled machine.

    The best part about it is adding to profitable positions is extremely simple and losses can never be averaged. Been a problem i've faced during my discretionary days.
    #47     Dec 29, 2007
  8. ET70424


    I shorted CROX in the low 70s, thinking that it would bottom out around $55 where the chart indicated fairly strong support.

    Well I was mistaken. CROX fell twice the downside distance I anticipated for it when it was near its high.

    So I made a blunder that could have been avoided quite easily. A careless and lazy mistake that threw good profits away by closing out too soon..

    It could have been a lot more profitable had I paid attention when CROX approached $55, as I would have realized that the $55 potential support was not going to hold up.

    #48     Dec 29, 2007
  9. rathodvg3


    might be this link can help little more...
    <a href=''>Here</a>
    and <a href=''>More</a>
    #49     Dec 30, 2007
  10. #50     Dec 30, 2007