StockFetcher Forums · General Discussion · Interview With James Woods<< 1 2 >>Post Follow-up
TheRumpledOne
6,358 posts
msg #39510
Ignore TheRumpledOne
12/14/2005 2:42:29 PM

http://www.askmen.com/poker/poker_interviews/5_james_woods_interview.html

Interview With James Woods

Known for his intelligent, edgy performances, James Woods is now bringing the studied intensity of his film roles to the poker table. When we caught up with him, we actually managed to interrupt his morning online session. Nevertheless, Woods was happy to wax lyrical to us about poker: his latest passionate obsession.
Excuse the interruption. You've been playing online?

Yes. Every morning I get up and think: Okay, while I'm reading the paper I'm gonna just play. But there's a big distinction between playing and really playing. You get people who say, "Okay, I'm gonna settle into the evening and play poker all night." And, of course, what happens is they go up a bit, down a bit... you might have a little rush and then go back down, but by and large they're gonna kind of grind themselves down. What grinds you down more than anything else is fatigue -- sheer fatigue.

A friend of mine, who was once in a terrible car accident, plays poker for a living -- he hangs out at Hustler [Casino]. He has to live off his poker winnings and plays incredibly tightly and aggressively. He plays the tightest hand imaginable, but when he's got it he plays. He will lay down a full house if he thinks it might be the weaker full house, without even thinking about it, and the reason is he has to make $500 a day to live. He says, "If I make $500, I take my $500 and I get out of there before I make any mistakes." He says you have to learn to be disciplined more than anything you could possibly imagine. So I thought: "Well, I'm gonna try this as an experiment."

So, about five or six weeks ago, I decided to get up every morning and play, and I have a kind of ritual: I play with the dog a little bit and, before I take a shower, I order my room service -- I'm in a hotel at the moment -- read the paper and play online. Which means that I'm not enjoying myself -- although I always do enjoy poker -- but I'm gonna be playing just to win $500, no more. That's my deal. The second I win $500, I log off.

The first month, I lost one day out of 31 days. So I've won every single day by playing incredibly, incredibly tight -- not playing for fun. It's amazing what happens if you don't get emotionally involved in the game and you sit down to win.




judgetrade
106 posts
msg #39576
Ignore judgetrade
12/15/2005 2:10:31 PM

bla bla bla
if it would be that easy...


Babylon
2 posts
msg #39618
Ignore Babylon
12/17/2005 4:25:01 PM

The main point conveyed here, translating into tradng terms, is that it is very important not to overtrade. If you read carefully, you will see that no one says that palying poker (or trading) is easy. All that is being said is that you have to maintain focus, you have to have specific goals, and you should not play poker (trade) for fun and overindulge in it if you want live off of it. Overindulgence leads to loss of focus, and, as a result, loss of equity... due to many reasons, such as fatigue, cockiness and greed when you win, fear when you lose, etc.

Your retarded remark is indicative of your success (or total lack thereof seems like) in the market. So, if you want to improve your trading, learn to read between the lines and analyze the information you receive, and study yourself, as YOU are your biggest obstacle to success.

I post rarely here, but this time I felt I had to. For one and only one reason: this man (Therumpledone) is giving us pearls almost daily. He doesn't have to, but he does anyway as he is successful and is kind enough to help out others selflessly. I have learnt quiet a bit from him, and I really appreciate his efforts. If the information he provides is useless to you, due to your inbaility to use your brain cells, then at least have decency to appreciate someone's efforts and not say anything at all if you can't think of something more intelligent to say.


judgetrade
106 posts
msg #39638
Ignore judgetrade
12/18/2005 12:27:51 PM

My point is you need both:
A method (or system or whatever you call it, that includes bet size optimisation) and a positive mindset. Without a method (that gives you an advantage) you can have the best mindset in the world, you will still loose. The better you method, the less requirements for your mindset, since a good one will give you a smoth equity curve, which in turn will support your mindset.

Thanks to the TheRumpledOne and other "stockfetchers" I have improved my method very much, since now it does work even in downtrends of the overall market. I thank TheRumpledOne a lot, I expressed it, I express it and will express it.
But that does not mean that I have my own point of view.

The "all you need is positive thoughts and you will reach everything school" is dangerous, from my point of view. And even you have reached a positive mindset; the challenge is to keep it in tough times. The better your method, the less tough times there will be (drawdown phases).



Babylon
2 posts
msg #39646
Ignore Babylon
12/18/2005 4:04:00 PM

OK, I understand your point of view, and good for you that you are able to learn from TRO... there is a lot to learn from him... but that "bla bla bla" did sound somewhat disrespectful...


TheRumpledOne
6,358 posts
msg #39650
Ignore TheRumpledOne
12/18/2005 5:16:52 PM

Judge please post your method or at least email it to me :)


judgetrade
106 posts
msg #39668
Ignore judgetrade
12/19/2005 1:00:31 AM

Sometimes I challenge my teachers :-)... no intent to be disrespectful...

Here my search screen:

Show stocks where RSI(2) is below 10
and close is // Add your stock price requirements //
and roc (1) < -5%
// add your volume requirements //

I take the result of the filter and 30 min. before the trading day ends I look for candidates that lost more then 10% and have good volume and rsi(2) below 1,
so I can catch stocks that follow the criteria the next day on SF.

Show stocks where RSI(2) is below 1
and close is between // Add your stock price requirements //
and roc (1) one day ago < -5%
and roc (1) < -10%
// Add your volume requirements //

The aim is that I want to own the stock before the next day, since there are more up gaps then down gaps and prices are lower in the evening then in the morning.

Bet Size, money management:

5% of Portfolio per position, no stop loss, no averaging down (though it would be more profitable, the draw downs would be bigger).
75% Cash at all times, for a nice steady equity curve.

Holding Days:

Evening in, one, two, three, 4th day out in the evening at the ask, if not filled I take the order to the next day. If not filled, I take the bid on the 5th day in the evening.

Advantages for me:

1) Not a lot of stocks to trade, I have a job and usually I am pretty tired in the evening (I trade from Germany, the trading day ends for me at 10:00 p.m.), so I make mistakes if I have a portfolio of more then 3 stocks that I have to handle in a short term manner.

2) Not much capital risked. The small position is basically my stop loss, the stock more like an option, since I do not mind (at least I tell that to my self to look at it this way) to lose 100% on a position.

3) Very high rate of winners (the lower the stock price the higher the rate of winners, the higher the loss and volatility the better the return.)

4) I backtestet a similar method from 1988 - 2005 with a different trading simulation machine (www.fasttrack.net) and it gave a very nice capital curve, that was not affected much by the overall market. I think the principle is robust and will not go away over time since itís based on human behavior:
Panic selling and miscalculation of percentages when it comes to high volatility stocks. You give the seller more utility then the cash value you are providing, since the only thing he or she wants is to get out at all costs.

Problems left:

There are weeks without a trade, I still work on not getting sucked into trades, that do not fulfill the criteria. So I only make 50% of the winnings the method could make me, but it gets better. What helps me is to have low expectations, so I tell me to make 25% a year and be happy. Only then I make more. Trading is strange. The lower your expectations for reward the better your mindset if you have a drawdown (at least that works for me).

Further more I like to research and try find better methods. But for now, that does not seem to be possible, so I have to find other projects.




TheRumpledOne
6,358 posts
msg #39669
Ignore TheRumpledOne
12/19/2005 9:04:40 AM

Thanks for sharing, I appreciate it.


glider
59 posts
msg #39670
Ignore glider
12/19/2005 12:58:52 PM

Judge,

Thanks for posting your filter.
I have a question on one you posted a couple of months ago. It's as follows:

Show stocks where RSI(2)is less than 1 two days ago
close is between 0.2 and 100
and close 1 day ago more than 10% below close 2 day ago
and close more then 10% below close 1 day ago
and price * volume > 100000

My question is regarding the last line.
Does it mean price X volume is greater than 100,000
For example, if price is .25, then volume should be not less than 400,000.
.25 X 100,000 = 400,000.

Thanks in advance

glider


judgetrade
106 posts
msg #39673
Ignore judgetrade
12/19/2005 3:21:20 PM

yes, if you trade low priced stocks, you do not want to put in criteria like
volume > 100.000 but stuff like price * volume > xxxxxx.

As a rule of thumb do not put in more then 5% of the average trading volumne in one trade and make sure that volumne is steady.

One more thing: you need to trade every single singnal! I missed very big winners just because I said "oh no, not this one, because it has been halted for some weeks", or "oh no, this one just went bankrupt". My experience so far, the worse it looks the better the trade.







StockFetcher Forums · General Discussion · Interview With James Woods<< 1 2 >>Post Follow-up

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