Awesome issue indahook. Wouldn't have spotted that myself... This man makes me feel shortsighted. I should look up from my intraday's a bit more and get a better overall picture.... Holding positions for that long would scare me, indahook! I guess I gotta practice that a bit... My respect to all successful position traders. May the supermontage be with ya ~Scientist
Here is a little stock that is fun. You will like it for three reasons: 1. it's a contrarian indicator stock. (to day markets are off so it is up) 2. it makes money every day in a very high % range. ( The gapping is fun too) 3. you can buy a lot of shares with just a little money. (Just get an early feeling of trading in large postitions. My limit in 30 dollar stock is 100,000 shares) Try out POSO as you B'day present. It's great to learn from a contrarian stock.
Yeah, not one I would trade myself..out of my price range of 15-65 bucks, but figured you straight intraday guys could use it. As far as those position trades scaring you...size matters The smaller the better (IMO). there is a saying "reduce untill you can sleep"
My girlfriend vehemently disagrees. indahook, do you hedge? I mean, do you go both long and short, no matter what market? If so, what's your position balance preference? 70/30 towards the current trend? 50/50 at all times? Some other distribution? Birthday stocks for ya? Hmm... Love SOHU and NTES - My fav this week is probably NTES - Awesome to trade even with 10Minute-EMA10 reversals, trading band crossovers and volume accumulation percentage are great indicators for this issue - The beauty of these stocks is they're full of fools and beginners - Easy prey... My last trade: Long ADBE ca. 23:15 (Here in Australia, anyway ) @34.84 - fib stop @34.73, @34.76 (just under daily low) ~final stop loss (mean) @34.74 Stop-Reversed pos @35.09 ca. 23:30 (volume peak - let's take the other side. My trade rating: ~55% (captured about 55% of the move - will check on that later). Net profit: $0.24 after commissions (IB >500). I love this. Beauty of momentum trading is that your stop-losses are so tight and you get to make many more trades, so your net profits, though small, are cumulative, thus drawing a steeper equity curve with smaller unfavorable excursions! Also, I can buy a lot more stocks. I can even leverage. :eek: And besides - I can sleep at night... Happy Trading, ~Scientist
Sorry off topic but to funny... Recently we worked on a project that involved users rating their experience with a computer. When we had the computer the users had worked with ask for an evaluation of its performance, the responses tended to be positive. But when we had a second computer ask the same people to evaluate their encounters with the first machine, the people were significantly more critical. Their reluctance to criticize the first computer 'face to face' suggested they didn't want to hurt its feelings, even though they knew it was only a machine." Bill Gates in The Road Ahead anyone use behavioral finance in their trading decisions, and even better employ it in some of their trading systems? An example of this would be "prospect theory" applied to news releases in event driven strategies... Like todays IBM suggestion. --------------------- . Prospect theory Kahneman and Tversky presented groups of subjects with a number of problems. One group of subjects was presented with this problem. 1. In addition to whatever you own, you have been given $1,000. You are now asked to choose between: A. A sure gain of $500 B. A 50% change to gain $1,000 and a 50% chance to gain nothing. Another group of subjects was presented with another problem. 2. In addition to whatever you own, you have been given $2,000. You are now asked to choose between: A. A sure loss of $500 B. A 50% chance to lose $1,000 and a 50% chance to lose nothing. In the first group 84% chose A. In the second group 69% chose B. The two problems are identical in terms of net cash to the subject, however the phrasing of the question causes the problems to be interpreted differently. Source: Daniel Kahneman and Amos Tversky, "Prospect Theory: An Analysis of Decision Making Under Risk," Econometrica, 1979. ------------------
I do hedge, but it is not a set %. A rough template would be 10% hedge using the SPY. But those numbers are traded around. I would never automatically go short/long the SPY just because I had a certain amount of trades in the opposite direction. In this market I have been short hardly at all (obviously).