Would you lose 10-30% of your money

Discussion in 'Trading' started by stock_trad3r, May 16, 2008.

  1. Some day you may wish to set up a spread sheet and compare how trading period and trading profits compare in various stock buy and hold position trading opportunities.

    I settled on trading the natural cycle of high beta stocks. The optimum for this is 2 1/2 days for the period and over 10% profit per turn. This equates to 100 turns a year and you can compound it if you wish.

    I understand that you have ways of predicting a gain if you go through a draw down of 10 to 30% first. For me I just do the trades coming out of the troughs and only hold for the run up of 10 to 30 during the long half cycle of the natural cycle.

    You can use the attached chart to do the trades I mention and use it with 3 beta high quality stocks.
     
    #11     May 16, 2008
  2. here is a snagit at 7:53 Tucson time which shows two lists. they are both sorted by unusual volume.

    The short one is the stocks trading and the long one is the 3 beta universe.

    the snagit appears in the camtasia and it's illustrated transcript entitled: Putting the Pieces Together. there are about 30 snagits that show the stream of capital making money through the day. The trades are annotated in the text.
     
    #12     May 16, 2008
  3. You can't time the market. I don't need stops. If is it revealed there is something fundamentally wrong with the business I would sell at a loss. But I have yet to have that happen to any of my picks.
     
    #13     May 16, 2008
  4. Well, that depends on who the "timer" is. The poster right above (jack hershey) just claimed to make 10% every 2.5 days. Compounded over 1 year, that turns $1000 into about $14 million. :)

    And if you are willing to put $100,000 on the line, you'd be looking at about $1.37 billion in one year. Not bad, eh? :D
     
    #14     May 16, 2008
  5. lindq

    lindq


    The most famous last words in the financial industry.
     
    #15     May 16, 2008
  6. This is the universe (alphabetically listed) at open.
     
    #16     May 16, 2008
  7. Try that with Crude, It'll get back to 65 bucks.
     
    #17     May 16, 2008
  8. sprstpd

    sprstpd

    Opportunity cost.

    Nice job though - willing to take $57 points of heat for a $4 gain!
     
    #18     May 16, 2008
  9. 50_Bip

    50_Bip

    Yeah real good setup there - $14.25 risk for every dollar you earned.

     
    #19     May 16, 2008
  10. Investors and traders alike need strong conviction and patience. An experienced trader expects something to happen and plans his trade upfront accordingly. If the market confirms this expectation he takes the trade! These trades are well-planned and because of that the trader does not need to worry about smaller swings against his position. All he does is sit back and let his stop and limit orders work for him. (Here we need stops because trades are rarely based on fundamentals but price action).

    The investor on the other hand bases his investment decisions on fundamentals and thorough research on a company. The so-called "due diligence." This allows him to sit out adverse price movements with conviction, similar to stock_trad3r's example of RIMM. Stops are unnecessary because the investor has an understanding of the company, not of its stock price.

    Both the trader and investor, however, will fail due to lack of plan in the long run. They get scared quickly and exit at a small loss/profit because they don't know (or in the rush of action forgot) why they entered the trade. The OP's post was a little abstract but offers quite a bit of truth.
     
    #20     May 16, 2008