TheRumpledOne
6,407 posts
msg #61506
- Ignore TheRumpledOne
modified |
4/15/2008 3:56:28 PM
drew9
TRO, my issue is that I do not trade for a living yet. I have automated trading software that allows me to buy at whatever level and take profits, trail profits and set stop losses accordingly. I prefer to take the emotions out of it. However, not being able to watch this all day means a stop loss is needed. Just wondered how you were doing it. I certainly like the percentages here but you have to account for those few losers and the question is how much to allow?
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Losers? If you focus on losing, then you'll lose.
Is every trade a winner? NO!
But two traders can be trading the same stock all day long. One wins and the other loses. What is the reason?
To me, it is simple:
THE HIGH IS USUALLY HIGHER THAN THE OPEN.
Buy at/near the open, at/near the open price and wait for the opportunity to make money.
When you trade the same stock, over and over and over again, it becomes ROUTINE.
How much loss to allow? Money management dictates that. You really don't want to take too many steps backwards nor do you want to be knocked out of the game.
If you are up $1,000 closed profit and down $500 open profit, then you have just given back 50% of your winnings.. time to bail and quit for the day.
If your open profit is a loss of twice your average winnings, time to bail and quit. YOU HAVE JUST TAKEN 2 STEPS BACK.
Nothing fancy, just common trading sense rule of thumb.
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drew9
171 posts
msg #61519
- Ignore drew9 |
4/15/2008 11:27:05 PM
I agree TRO. Wish I could watch it like you but I cannot at this point. So I utilize software where I can set the parameters and try and squeeze out as much as possible. When you cannot watch it all day, stops become part of a needed common sense trading plan - especially with the volatile stocks like RIMM. Thanks for passing along your method.
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luc1grunt
622 posts
msg #61521
- Ignore luc1grunt |
4/16/2008 7:37:08 AM
If you place a hard stop on RIMM, AAPL, GOOG, BIDU...better make it wide or it will get run. Look at the ADR on these. Mechanical stops add unecessary risk for intra-day scalps/swings. If you must, widen the stop and lower the shares as needed.
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TheRumpledOne
6,407 posts
msg #61544
- Ignore TheRumpledOne
modified |
4/16/2008 9:44:15 PM
luc1grunt
If you place a hard stop on RIMM, AAPL, GOOG, BIDU...better make it wide or it will get run. Look at the ADR on these. Mechanical stops add unecessary risk for intra-day scalps/swings. If you must, widen the stop and lower the shares as needed.
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If you wait for STATISTICAL setups, like RIMM DAILY < RSI(2), then you can just set your TP. Yes, it could run against you but the stats are in your favor so long as your TP is NOT too greedy.
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luc1grunt
622 posts
msg #61545
- Ignore luc1grunt |
4/17/2008 7:16:26 AM
Stats are in your favor.
My post was in regrads to the poster not available to watch the intra-day action. Always take the ADR into account when placing hard stops on volatile stocks. :)
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luc1grunt
622 posts
msg #61546
- Ignore luc1grunt |
4/17/2008 8:18:26 AM
Gaps stats are profitable.
Hioplo stats are profitable.
stochastic / ma crosses are profitable.
You have to use the data in your favor and exploit the advantage.
I think it is foolish to rigidly adhere to a "camp" (stats vs. squiggly as some phrase it), unless you are new to trading. Then, I believe it is wise to learn the hell out of a strategy and then trade it.
:)
I also believe explaining a strategy is in order as opposed to assuming the audience is in the same row as the poster. That, to me, is just common sense.
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klynn55
747 posts
msg #61548
- Ignore klynn55 |
4/17/2008 10:14:24 AM
Luc: i have never traded but wish to do so: however, i don't understand tros filters.
if anyone would gjve me a hand , i'll pay you. First i will do a search for the column headers,google and here, if that doesnt work. ill ask for a hand.
my email is klynn55atnetzero.net
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TheRumpledOne
6,407 posts
msg #61556
- Ignore TheRumpledOne |
4/17/2008 1:53:04 PM
4/17/2008 7:16:26 AM
Stats are in your favor.
My post was in regrads to the poster not available to watch the intra-day action. Always take the ADR into account when placing hard stops on volatile stocks. :)
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I was agreeing with you.
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TheRumpledOne
6,407 posts
msg #61557
- Ignore TheRumpledOne |
4/17/2008 1:53:53 PM
klynn55
.....however, i don't understand tros filters. .....
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THEN MOVE ON TO SOMETHING ELSE.
PLEASE LEAVE ME ALONE.
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klynn55
747 posts
msg #61559
- Ignore klynn55 |
4/17/2008 2:29:35 PM
TRO;
that post was'nt directed to you, i simply need help and so asked.Hell. once i get going i might even send you a donation!
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