Very Takeoff

Discussion in 'Risk Management' started by TheMagican, Jan 5, 2013.

  1. A question for those using any sort of S&R methods,or whatever methods directed to capture tops/bottoms.What are your rules,if any,for cancelling a trade if it doesnt lift off at the very entry?How many points/cents it should go against you,in order to cancel the trade?
  2. Redneck


    You are essentially asking how to frame up experience / skill – with a rule….

    It can’t be done… and it’s impossible to say – as it’s all dependent upon PA


    Every stock has a unique personality

    Every top/ bottom.., or potential top/ bottom – has a similar, but also unique signature and characteristics (btw it’s the similarities that make it feasible to id/ trade these turns)

    Every time price reaches a potential turn (S&R / top/bottom in your vernacular) – it’ll be the PA that gives it away

    And it’s the PA that’ll determine where a trade will /has failed – hence where the stop is placed


    So there can be no set rule – as it simply won’t work for every conceivable situation

    But, there must be an overriding guideline – which is to keep the cost of discovery small… and hang on when right

    Btw – there are times when it may take multiple entries to catch a turn – then other times when you get it right on the first lick

    So, long as the profit consistently exceeds the cost – it’s all good

    A trade does not “capture” anything – a trader – trades what’s in front of him/ her – always – while protecting their ass

    eta; One additional thought - plenty of profit can be made in between turns - why sweat the small stuff

  3. Just rent a plane and have the instructor take you through a stall. That (very uncomfortable) sinking feeling has a profile - it starts out "mushy" then breaks abruptly. Such is the feeling, financially, of a signal that does not follow through.

    When the airspeed gets below a certain amount, everything feels very soft - as if the plane is drunk. The flight controls seem to do very little and the entire airplane buffets up and down gently, sometimes yawing slightly.

    A financial instrument will linger as volume gets light, and the candle doesn't bounce up and down as it did during the initial signal, then it just sits there, sinking. And finally it pukes.

    Just like an airplane when the engine quits....

  4. No one has a slightest clue what i`m talking here,apparently.
  5. Redneck


    KaBoom!!!!:eek: :p

    Good analogy WT

  6. very cool.

    The silent intentional version is fun too. A glider is perfect tool and it is part of acrobatics. Fanning sideways and going straight down realy gets you to hull speed fast.

    Then you can do it again. I made three of theses my imprimatur before I went into my approach circuit.

    trading for me has always been like catching thermals. When you get up there, just go along the cloud avanues until the sun goes down.
  7. Am i careless with entries,anyway,if i have,sometimes, $4K-to-$5K drawdown for $50K account(i trade CL and use $2,5K in margin),before the price goes in my way?I mean,is there any standard in the industry?The reason i`m asking is that i will introduce my performance to the big investors,soon.

  8. If there's one thing big investors love more than anything else, it's drawdown. You'll be a hit. :p
  9. You think $2-3M isn`t that big?I know,if i show no DD,there gonna be a big problem with the big folks.:p