Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Bought microsoft @ 48.70$.

Reasons?

Will post up diary journal photos soon.

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)



Some of the ways I go through my trade. Obviously I scan through charts which catch my eye and also go with the flow of the markets. Ill probably get bashed for it but feedback is always good.

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

 

[tech/a]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Your trading a $48 stock with a few K??

Seriously.
When are you going to get serious?
You posted up expecting some help.
Its been given and ignored.

'---Sorry Ill start again.
Well done.
Looks average but at least its a trade.
You've actually DONE SOMETHING.

 

[skc]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Your trading a $48 stock with a few K??

What's wrong with that?

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

I took your advice into consideration. I searched for stock under 10$ and 5$.
Most of them are no where liquid enough. I don't have the experience to know what is liquid enough but I was hoping for at least 1Mill turnover in volume daily. Or maybe you recommended them because you believe they are easier to double in price etc.

Most of them are a few hundred k with spikes above 1mill on occasion.

I understand its due to undercapitalization hence why you recommended that but if I am selective enough in my entry then my stop can be tight and allow me to still capture the run in more pricey stocks. More so if they are not as volatile.

I'm not disregarding your advice. I'm just a noobie and until I fully understand the full implications and reasons of your advice, then I cant fully appreciate it. For example I just recently realized what you meant about undercapitalisation.

 

[tech/a]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

What's wrong with that?

Nothing.

 

[burglar]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Nothing.

It's a hard game ... isn't it?

 

[Trembling Hand]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

but if I am selective enough in my entry then my stop can be tight and allow me to still capture the run in more pricey stocks. More so if they are not as volatile.

I'm not disregarding your advice. I'm just a noobie and until I fully understand the full implications and reasons of your advice, then I cant fully appreciate it. For example I just recently realized what you meant about undercapitalisation.

What you are still refusing to listen to is that your stop is Utter BS.

Just because you say its at 50 cents or 80 cents or whatever has no actual link to what it will be in reality after 100 trades. If you had gone through a proper testing period and kept stats on the stocks you planned to trade and traded in the same method you would understand. But like most you have wasted a year or more playing the ASX game and do not know what works and why. Not keeping stats, not using the same approach, not using the same stocks and even more bizarrely admitting you were never profitable!!

As far as going through a proper development process to start heading in the direction of a competent trader you are doing the opposite. After 10 trades you will most probably be nowhere except lost and another 6 months down the track.

If you were at all half serious you would be setting up something like Ninja Trader with free Kinetick EOD data and trading a sim portfolio of $100,000 on the Russell2000 for example. That way you could have 10 trades open at a time and have to eyeball 100s of charts a day and actually manage risk and get feedback to what actually happens because you seem to have a best case view of the world. You cannot see where risk is because you have never experienced it.

 

[tech/a]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

What you are still refusing to listen to is that your stop is Utter BS.

Just because you say its at 50 cents or 80 cents or whatever has no actual link to what it will be in reality after 100 trades. If you had gone through a proper testing period and kept stats on the stocks you planned to trade and traded in the same method you would understand. But like most you have wasted a year or more playing the ASX game and do not know what works and why. Not keeping stats, not using the same approach, not using the same stocks and even more bizarrely admitting you were never profitable!!

As far as going through a proper development process to start heading in the direction of a competent trader you are doing the opposite. After 10 trades you will most probably be nowhere except lost and another 6 months down the track.

If you were at all half serious you would be setting up something like Ninja Trader with free Kinetick EOD data and trading a sim portfolio of $100,000 on the Russell2000 for example. That way you could have 10 trades open at a time and have to eyeball 100s of charts a day and actually manage risk and get feedback to what actually happens because you seem to have a best case view of the world. You cannot see where risk is because you have never experienced it.

Darkhorse and any other noob out there.

DO THIS!


The DUCK is over and out for this thread.

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

TH, your speaking as if an aspiring newb trader knows exactly what steps to take as soon as he set foot in this industry. I wish I saw your first year stats.

I have been keeping eye on stocks. But they are forever changing and some become unsuitable. 48 $ was a significant point in microsoft where it propelled for a few weeks before topping. Yes my stop doesnt have any real significance statistically. Fair enough.

Ive made enough mistakes to know what not do, SON. Hahaha.

Either way you are right. I need to find statistically proven methods. Ive got another 40 years to develop it.

 

[barney]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

TH, your speaking as if an aspiring newb trader knows exactly what steps to take as soon as he set foot in this industry. I wish I saw your first year stats.

Dark, If any trader had very ordinary stats when they first started, and now they are a gun trader, would you think their advice regarding how to trade might be valuable

Either way you are right. I need to find statistically proven methods. Ive got another 40 years to develop it.

That is correct .. you have time on your side.

Should you be risking your current 7-8K when in the mean time you could be honing your skills with NO risk, plus saving for the future when your you beaut tested system will turn your 50K into a million in no time flat

Bear in mind people here are not trying to put you down, and often the best advice will be in the form of tough love

Just for the record, have a look at the two similar charts below ... One is Microsoft, the other the Dow Jones Index ..... What do you see with regard to potential Risk on Stocks Vs the Index?

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Thanks Barney. I understand where you're coming from. Im personally a bad teacher. I abuse my brother verbally when I try to teach him and I try to twach him through highlighting all his downfalls in an attempt to wake him up.

But we all need some positive feedback. The way im recieving the feedback is basically " your strategy sucks" or this specific ruke makes no sense. I understand imnot going to be spoon fed and most if the feedback is taken which im given and reflected on. Just because I dont change it doesnt mean ive disregarded it.

For example just because tech said the share price should be under x amount and I didnt adapt my strategy below that doesnt mean I dont acknowledge his wisdom etc.

Im trying to find my own style and although the fundamentals of all good traders are similar there strategies vary.


I know we speak about statistics and historical evidence but im being arrogant in the sense that I realize that back testing is a MASSIVE task and im hoping that following the basic principles of a good trader can mean I can bypass some sort of computer programmed testing.

Why? Because I have no idea how to do that. Ive also bought nick radges bool which tech advised and I still have to read it. So hopefully that opens my eye a little more.

Barney, the correlation between msft and the dow looks very positive. I wasnt going to go long if the dow wasnt up but im hoping the recent short term support at the previous all time high holds enough to give msft a little run.

 

[barney]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

But we all need some positive feedback. The way im recieving the feedback is basically " your strategy sucks" or this specific ruke makes no sense. I understand imnot going to be spoon fed and most if the feedback is taken which im given and reflected on. Just because I dont change it doesnt mean ive disregarded it.

No, your strategy doesn't suck. What everyone is trying to reinforce here is basically caution in regard to your account size vs how much you could lose if things go pear shaped a few times in a row (Gaps are one example)

The fact that you are putting a lot of thought into what you are doing is commendable; your problem is your Bank size; Why risk it at this stage?

Go back and read each of TH and Tech's last posts ..... TH told you what to do to improve your trading; Tech reinforced that emphatically (in BOLD) ..... I'm simply encouraging you to listen to them!!

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Barney I took the advice which you guys gave and only allocated 30% of my total capital to MSFT. Even if it gapped down 10% which would be 300$ ive minimozed the damage by 66%.

Also most of those gaps are because of earnings reports I assume?

What TH is advising is create a technically sound strategy proven by historicall back testing. For all aspects including stop loss setting etc. I agree it has to be done.

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

I thought im managing risk by only participating when there are as many factors in my favour as possible or as little factors as possible going against me.

 

[Trembling Hand]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

TH, your speaking as if an aspiring newb trader knows exactly what steps to take as soon as he set foot in this industry. I wish I saw your first year stats.

Err..... I have mine but you haven't got yours!!!! My point is dude you have been through your first year and you don't know your stats on your ideas. First year has now been wasted!! What do you think about that???

I know we speak about statistics and historical evidence but im being arrogant in the sense that I realize that back testing is a MASSIVE task and im hoping that following the basic principles of a good trader can mean I can bypass some sort of computer programmed testing.

What like winning the Tour de France without training or performing brain surgery without doing a medical degree or flying a plain without pilot lessons.

And that is me going the way of the duck,

The DUCK is over and out for this thread.

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

How was it wasted. How can I even start to collect stats or run them through a sim if I dont even understand the basic principles of trading/position sizing/ risk control. Im only getting a grip of them and you can only start to run tests when you understand why is it your testing them.

Anyways im out.

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

Quick update. As a few of you kindly suggested, im going to go back to basics. ATM I am weeding out potential candidates which meet mh strategy to test on ninja trader.

As some of you also suggested, in order for me to truly understand my edge, my strategy should be robust enough to signal many trades (more sample size = clearer picture). Also the fact that I need to find a strategy which will work on most market conditions is a must.

So far I have found one stock out of a few, symbol ALSN. Just waiting for it to rebound of its support level then enter the posituon on the sim trading. My biggest challenge is scanning through enough charts to find enough trading signals. I dont want my results to be skewed. As for live trading, im currently atill in MSFT, however once I exit this I will probably pass up on trading live for a while. I might only participate in a few select scenarios.

Now that I have some direction I can be abit in peace and do what must be done.

Thanks

 

[darkhorse70]

Re: Darkhorse's "REAL MONEY" trading diary (noob friendly haha)

My main goal is to find a strategy with minimal draw downs, consistancy, a positive expectancy and robustness. Im sure there is more to it than that but ill figure that soon enough. Ill use the stats from ninja trader to measure my performance.