My three trading rules

[BentRod]

I'm not getting involved Chaps but all this talk of Balls reminded me of Paul Tudor Jones.

http://video.nytimes.com/video/2007/10/12/business/1194817106985/long-distance-dealing.html

 

[MRC & Co]

Plenty survive and plenty have well over 3 years under their belt, a lot have been in this game a lot longer than yourself.

BTW, as a scalper, it would be evident well under 3 years whether or not you would cut it. The trades you would do by that time would be many many thousands.

All my point is, is to make enough to live a decent life in this game, you need balls (whether that be doing a 2000 lot as an already big trader, or uping your size from 1 lots to 10 lots). As does any businessman, including yourself tech. A 9-5 job would be a very viable option otherwise.

This is really crossing into idle semantics now, so I will leave it at that.

All the best with the trading.

 

[Naked shorts]

Read about Paul Rotter, he is the best day trader on the planet, takes large beatings and still makes packets year in and year out, the same as these guys.

Just read about him. He takes 5digit positions

Seems to me scalping is the way to go. I checked out a recruitment website for hedge funds and all they want is traders who can scalp.

 

[BentRod]

Just read about him. He takes 5digit positions

Yep, that's the flipper.

Started from nothing, now worth craploads.
All from plugging away at the computer day in day out.

Big inspiration for me even though I don't even scalp .

 

[spibok]

Back to the future! I see TH has post 5001 up (welcome back?) Question on this post (which I have pinned on my wall at my trading desk), and have read many, many hundreds of times. TH,you mention scaling up during the day once you have made your wage. Can you provide me some brief details on how you do this? I have been giving this a lot of thought and would be interested to know your take on it.

As an example, if trading 1 contract with daily wage goal of $250.
1) at $500, go to 2 contracts. Back to 1 contract if you lose 25% of the $500
2) @ $1250 go to 3 contracts, stop if lose 25% of $1250

etc etc etc

How quickly do you get aggresive, at what rate (ballpark is fine here, feel free to use a hypothetical trader in an example), and when do you call it quits for the day if things start going south once you have scaled up the position size.

Thoughts from TH, or others, appreciated.

 

[Logique]

Just in case anybody is interested

My three trading rules:
1. Invest in what you understand
2. The trend is your friend
3. Don't fall in love (with a stock or index)

 

[moreld]

Hi spibok
If you haven't read the anything about the Turtle traders then I'd encourage you to read the Original Turtle trading Rules at the least http://bigpicture.typepad.com/comments/files/turtlerules.pdf

Richard Dennis or maybe it was someone else said they could make money on even less than a fair coin toss, as their edge came from the betting strategies, which are anti-martingale, ie increase your bets when winning.

 

[spibok]

Moreld, have read those rules thoroughly. Yes, they do provide a basic protocol for adding to your position, just interested in how others go about this, particularily in TH's case where he ramps up risk as a result of his P&L on the day.

 

[Frankie]

Hello Everyone,

My three trading rules are as follows:

1. Find a Guru
Find someone who already trades successfully.

2. Write down their trading rules.
Their trading rules must be crystal clear for me to continue.

3. Paper trade using their trading rules
I need to find out if their system could work for me before I commit real money.

Later on, I may decide to adapt their strategies to suit me.

 

[ThingyMajiggy]

Hello Everyone,

My three trading rules are as follows:

1. Find a Guru
Find someone who already trades successfully.

2. Write down their trading rules.
Their trading rules must be crystal clear for me to continue.

3. Paper trade using their trading rules
I need to find out if their system could work for me before I commit real money.

Later on, I may decide to adapt their strategies to suit me.

Wow, you sound like a real expert. No wonder you have a site with Guru this and Guru that, and even trading strategies on there. Impressive! I nearly need a new set of steak knives too, its almost worth signing up.

 

[nunthewiser]

Wow, you sound like a real expert. No wonder you have a site with Guru this and Guru that, and even trading strategies on there. Impressive! I nearly need a new set of steak knives too, its almost worth signing up.

Now im impressed!!!!

taken from site

yet another wanka.

no offense intended of course

 

[brty]

Frankie,

from website...

So then, how the heck do I find fundamentally strong companies to trade in?

If you are trading from charts, then why do you need to find fundamentally strong companies?? I find that when trading using charts it does not matter about the fundamentals of the company.

brty

 

[Frankie]

Hello brty,

My “ideal situation” is to continuously trade in and out of the same stock repeatedly over a long period of time.

To answer your question though, it gives me great piece of mind knowing that a professional research firm is recommending a stock that I’m trading in because it believes the company has strong fundamentals.The analysts at these research firms earn a living studying the fundamentals and recommending stock. For an analyst to survive in the long term their recommendations need to work.

I like to start with a list of recommended stocks from my chosen research firm. (That’s a whole topic in itself!) I then bring up a chart for each stock they recommend on their list. If I see a chart I like, I set my profit and loss targets based on the price action of the chart.

By doing this I feel that I am using a holistic approach – combining fundamental and technical analysis together.

Both types of analysis are very important in my trading plan.

 

[Gringotts Bank]

It's all about the psychology. Feeling like a winner creates winning trades, which is why the outcome of your most recent trade(s) have great importance.

If trading had anything at all to do with method or technique, don't you think the big funds would be raking it in? They'd just employ some super-nerd Ivy League technician, leverage up to the eyeballs and away you go. As it is, most funds struggle to crack 10% pa.

The spoils go to the guys who can create strongly positive mind states > trade off that > win > trade off stronger winning mindstates > snowball profits. The opposite applies also: lose > more losses > feel like a loser > shut it down for the day (or until you can regain some feel-good vibes to trade off). That's all there is to it.

 

[Trembling Hand]

If trading had anything at all to do with method or technique, don't you think the big funds would be raking it in? They'd just employ some super-nerd Ivy League technician, leverage up to the eyeballs and away you go. As it is, most funds struggle to crack 10% pa.

The spoils go to the guys who can create strongly positive mind states > trade off that > win > trade off stronger winning mindstates > snowball profits. The opposite applies also: lose > more losses > feel like a loser > shut it down for the day (or until you can regain some feel-good vibes to trade off). That's all there is to it.

Haven't posted here for some time but this rubbish has pulled me out of ASF hibernation.

If you think that a positive mindset makes a winner then why don't you "think positive" then go win the Aust Masters Golf?

Why not??

Because you haven't the SKILL. Mind set comes from skill not the other way around.

 

[nunthewiser]

hehehehe

Good to have ya back TH

theres been some rumours floating around ASF that you dissapeared due to snowflake inhalation and cocktales on the beach.

can you confirm or deny said rumours?

 

[tech/a]

but this rubbish has pulled me out of ASF hibernation.

Saw it but see it (and similar) so often couldnt be bothered.
Now I know how to get you if I have a question T/H!

 

[Trembling Hand]

theres been some rumours floating around ASF that you dissapeared due to snowflake inhalation and cocktales on the beach.

can you confirm or deny said rumours?

Yes a very bad case of Snow-Flake-itis. Only treatment for it is relaxing on the beach and restricting the :alcohol: . Able to for fill half the treatment.

 

[explod]

Hello brty,

My “ideal situation” is to continuously trade in and out of the same stock repeatedly over a long period of time.

By doing this I feel that I am using a holistic approach – combining fundamental and technical analysis together.

Both types of analysis are very important in my trading plan.

How long have you followed this method and how has it worked for you.

Interested in your chosen analyist's and cap sizes of the stocks.

Sounds good, the least complex the better I have found. But I am but a simple man.

 

[Broadway]

Frankie. If your method and strategies are so good, why are you a book salesman? And why are you pushing someone else's 'secret strategy'..?

I love when these guys show up. All hot air.