scalping a few points is the hardest trading setup . if you include possible slippage & commission ,scalping is not suitable for most of traders unless they have a "high winning percentage " system .otherwise they will not survive
Luck is a minor factor, but it's definitely a factor. For example, once, when I was still a total newbie, I didn't realize that the NFP came out every first Friday of the month. One such Friday I had opened positions, but I was feeling exhausted and I closed my eyes just for a minute - or so I thought. A car alarm from the outside woke me up just as it was beginning and I realized that there were some sort of news coming out. If I hadn't woken up purely by accident, I could've lost half of my account.
So what you are saying it better not to say "rob the inexperienced" and just wait for whatever the strong will give? Or do Europeans are more hushed of being taking the inexperienced monies and yet they still do, otherwise there not be enough from the HFT? Or are you saying all the monies you try to profit you donate to the poor=I commend to you to risk your monies to give to all those who are waiting for free monies. Or do I have this wrong? So UK enjoy rooting for criminals in their country but they attack how USA lives? So I suppose you don't trade? The fact is we all know where profits come from, the strong get stronger and weak quit whether you are truthfully loud or quiet about it. So unless you have your monies in a bank making less than half percent a year, you my friend is a Capitalist as well. Typical Europeans.
%% Thanks for sharing; i wish you well, Mlawson. But you KNOW, now- if you could have lost 50%-that is WAAAAAAY to big a position. Some businesses , MS M lawson,one can get by with bigger risk; home improvement business, for example, one can have a huge position in material -NO PROBLEM, the best lumber yards will take it all back-same price- with NO restocking fee-but dont take unfair advantage of that. Trading too big is NOT a matter of bad luck-- its simple math that will kill anyone's account. It's like russian roulette with 5 of 6 chambers loaded; a real killer. Wisdom is profitable to direct; i wish you well..........................................................
Patience. Any type of analysis or design operational strategies that can make day trading for a given session must be made from the tranquility and patience. Discipline. Once you have opened an operation placing stops of profits and losses as we designed our strategy is the key to long-term, we can survive 95% of traders in derivatives (futures, CFDs, warrants, options .. .) fallen earlier in different daily battles. Humility and courage.
I am aware of all that. Back then, as I was said, I was a total newbie, so I wasn't aware. My lack of knowledge and experience caused me to open that big of a position. My sheer dumb luck - at the time - saved me from the consequences. Which is why it's good to have first and foremost knowledge and experience, so you wouldn't make mistakes such as this, and a little bit of luck for when you do make them. We're all human, we all make mistakes. It happens. One cannot and absolutely should not rely on luck, but it is good when it's there.
Hi Gary, I greatly admire what you have accomplished in trading. I agree that junk bond open end funds have great persistency. I have been using 2% stops such as you recommended in your 1999 book. You state that you now use 1 to 1.25% mental stops. Two questions: Do you find the tighter stops more profitable than 2%, and do the tighter stops raise the fund manager suspicions regarding their frequent trading policies? Thank you in advance for being a inspiration for my investing. Ralph
Long before you guys quit Plymouth Rock, the poor were battling the rich here not just for a fair share but to stay alive. Do you think the barons in their castles could care less ? Of course not. But with Magna Carta and some armed revolts the brutes were forced to make concessions and even pretend to care. A bit like the USA now probably. It's a sad day when the rich have to live behind gates and armed guards. Share it around a bit, even if only to your friends if you have any. I always admired Rockefeller who gave 10% to his local church. Not that I believe in God much but the local vicar would know the needy better.