Also. For anyone who wants to actually trade on the stock markets, and not talk crap,
paper trading/simulated trading, is pretty much useless.
Really? Thanks for that xygtho, it's good to know I've been wasting so much of my time for so many years. /sarcasm.
Xygtho I maintain certain levels when I test a new strategy so I don't waste time. Here are the levels.
New Idea/Strategy
I go away and gather data on the target space (Ie if it's a strategy that will only be employed within the ASX200 I will gather that data) and apply the idea on historical data. Personally I find that I like to test the data in both rising and falling markets. (This is how a long time ago I figured out not to use oscillators in strongly trending markets for example).
Phase two of the testing process will be to test against live data.
and Phase three of the testing process will be to test using a small portion of the funds ultimately destined for the strategy.
From phase I and II I learn the following highly important pieces of data.
win/loss ratio
cents gained versus cents lost (anything less that 3 cents gained per cent lost is abandoned)
The above determines my positional sizing model that I will use, and if using leverage in the strategy, what portion of my own funds I am risking.
It also lets me know how close to the price action I need to establish my stop loss positioning.
Back-testing is time-consuming and can be complex, but is highly rewarding if done right. Doing it wrong......not so good.
Your not actually participating.
When you participate, you will find that your participation is making the stock go up or down, along with the market conditions.
In my professional opinion I highly doubt that your trading volumes are sufficent enough to alter your outcomes in anything but the most thinly traded stocks. If you ARE trading in thinly traded stocks where you are moving the price...that could be part of your problem right there.
No you are specifically restricted from providing advice on these boards.
stick with RIO, BHP and your blue guys, put your money in these strong companies, (blue chips), and let your money run. Last time I checked, RIO was at around $75/unit, when they peaked, they were at $125, so your looking at possibly a 66% return + dividend. Thats making your capital work and grow. Now if you put 10K, thats $6600 return. Just gotta wait till it reaches that point, I doubt there'll be a W shaped disaster, but ultimately the stock market never disapears and history tells us strong companies and government backed companies will recover, it should reach that point and go beyond since the world is continually growing and theres a new mining boom coming. (but yes look at telstra) (omg the variables)
Telstra is paying 10% dividend?
So yeh, theres oppurtunities. If you want to take a big risk, Virgin Blue were $2.40 at their peak, the stock is at $0.54 cents. Do the maths.
I should take my own advice.
Why? Are you an educated professional trader? I don't mean to be derisive here, I just want to challenge what you think you know. You have no way of knowing what it is that you do not know. That lack of knowledge can hurt you if you are
playing around with your hard-earned dollars with no risk management, positional sizing or trading rules in place.
But I want the profits today, I want to beat the market at the end of the day. On paper it worked, in practise, different story. Stop loss *cough* stop loss *cough* sell short *cough* take my own advice *cough*
still a newbie. and i dont know what im on about. i admit that. hehehehe
Cheers
Sir O