scott111552
173 posts
msg #124411
- Ignore scott111552 |
7/18/2015 7:11:43 PM
then why continue? Find a good mentor if you must trade........
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four
5,087 posts
msg #124413
- Ignore four
modified |
7/18/2015 7:16:21 PM
k,
I notice, you offer proof trading works AND offer proof trading doesn't work.
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johnpaulca
12,036 posts
msg #124418
- Ignore johnpaulca |
7/19/2015 11:37:19 AM
way too much risk in your trading style.
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karennma
8,057 posts
msg #124419
- Ignore karennma |
7/19/2015 12:55:27 PM
Guys!
You've missed my point.
The math is simple.
Let's say, I bought NFLX 2 yrs. ago (which I did) somewhere between $68-$75.
I buy 500 shrs per trade. It moves up ONE dollar & I take my profit.
Let's say, I traded it 5 times. My strategy is repetitive and yes, Four, you are correct, "it works" -- usually. Buy a dip, sell @ $1 gain each time. Depending on the stock, the move can be anywhere from $1-$5 in a day or two. However, my goal is to be in cash, not "stuck" in positions like I was in June during this long correction. So, for simplicity's sake, let's just say, every $1 move, yields a $500 gain. I take my gain, & stay "in cash", until the next trade. If anyone here consistently reads my posts, you know I look for at least ONE DOLLAR moves, not pennies .. unlike many of JP's trades. I try to stay away from doing 4+ trades a day. I'm not saying there's anything wrong with that kind of trading. It's just that .10-.50 cent moves would require too much daily trading for me. Just like trading 5, 6, 7 -- different stocks per day or week doesn't work for me.
So, I made $2500 on NFLX and moved on to another stock (which I think, at the time was TSLA).
TWO years transpire. In 2013, did I think NFLX would go to $700? Uh, frankly, no. Did I think 2 years ago, the DOW would hit 18,000? Did you? Do you think the DOW will be 20,000 year end?
My POINT was, I would've made more money, NOT trading ANYTHING and just holding 500 shrs. of NFLX for 2 years.
JP has already proven that point with his previous post.
U do the math.
If you're making $150-300K a year "trading", then, my apologies. I'm certainly not as skilled as you.
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four
5,087 posts
msg #124422
- Ignore four
modified |
7/19/2015 7:45:21 PM
K,
When would you have said enough and (draw down = __________% over the 2 year time frame) taken a loss?
There is a point below (loss) and a point above (profit) the trade.
These % or $ amounts are part of the "trading" system.
Your arbitrary $1 profit point may be considered scalping by some.
We should be letting winners ride.. and losers go
Perhaps this video will help? http://tfl365.com/day-17/
Rob Booker
PS http://tfl365.com/day-19-how-to-invent-a-trading-system/
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novacane32000
331 posts
msg #124423
- Ignore novacane32000
modified |
7/19/2015 8:03:17 PM
Karen I kinda see what ur saying.
Looking back through my trade log (Exactly 5 years) I have 989 trades.
45% of my net profit came from trading CRD.B on just 33 trades.
47% of my net profit came from trading RMTI on 115 trades
and the other 7% of my profits came from the remaining 841 trades which involved some 350+ different stocks/Etfs.
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karennma
8,057 posts
msg #124425
- Ignore karennma |
7/19/2015 8:17:58 PM
@ Four,
Re: "Your arbitrary $1 profit point may be considered scalping by some."
=======================
I suppose a more appropriate term for what I do is scalping -- Unfortunately, I tend to not let my winners run because I don't know when the running will stop. AAPL is a good example. SWKS I another. AAPL's been a dog for a while. I know peeps who've been holding AAPL since February waiting for a continuation of "the run". IMHO, they would've been better off in cash, doing one trade a day in other stocks..
I dunno ... I'll watch that video you posted. Thanks for the heads-up.
:>)
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four
5,087 posts
msg #124426
- Ignore four
modified |
7/19/2015 8:20:49 PM
K,
PS http://tfl365.com/day-19-how-to-invent-a-trading-system/
" I tend to not let my winners run because I don't know when the running will stop. "
Runners stop when your system says the running has stopped. Just like your system says the running is still going.
Simplified system: Car moves when gas is in the tank (running)... Car stops when the gas tank is empty (trade ends).
I can be in the driveway (0 miles) or up to 400 miles away. It All Depends.
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karennma
8,057 posts
msg #124427
- Ignore karennma |
7/19/2015 8:47:33 PM
four
2,272 posts
msg #124422
- Ignore four
modified 7/19/2015 7:45:21 PM
K,
When would you have said enough and (draw down = __________% over the 2 year time frame) taken a loss?
=====================================================================================
Re: NFLX
Honestly? NFLX was a hypothetical. And, for me personally an unrealistic one. Back in Oct '14 didn't NFLX drop from $675 to $375 -- or something like that? JP claims he remained long in his retirement account.
Not me!!! THAT alone would've scared me out of it. And I prolly would NOT have gotten back in it for a long time.
That's the other reason why I "scalp" or prefer staying in cash -- FEAR.
My first rule of trading is "KNOW THYSELF".
I know I'm afraid, and I know my first trading priority is capital preservation.
For me, trading is not about making money, it's about not losing money.
I also know I don't "chart" well enuf to know when a market has run it's course.
Other people (here & elsewhere) have a much better handle on that than I.
So, I rely on OPCs (other people's charts) and read OP's opinions .
I know what I know and I know what I don't know.
If I get confused, I don't trade, and stay in cash.
For me, cash is a position.
Funny, JP thinks what I do is "risky". IMHO, I'm very conservative.
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four
5,087 posts
msg #124428
- Ignore four |
7/19/2015 9:00:42 PM
"That's the other reason why I "scalp" or prefer staying in cash -- FEAR."
--
I notice the goal is not to make a profit but instead to reduce fear. I wonder: Why do you trade, if not to make a profit? Boredom, Excitement, Stress, Enjoyment, Distraction...
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