What are your top 5 trading rules???

[tech/a]

Muppets.

I own a company we have 12 in the fleet.
I will gladly place on this site for you Nun all rego papers it will cost you rightly $500 to Joe in support of allowing muppets to post on an otherwise reasonable site.

As for the statements shown For $500 each queried I will also produce the entire account for varification REAL no demo account.Think Ive posted around 5 or 6

Joe should make about $3000.

Away you go muppet I might have a mouth but I also have the goods!
Watch the muppets back off at 1000 mile an hr.

By the way dopey I also challenged a poster who it turned out HAD the goods. The bet was $500 which I sent to Joe in 24 hrs.
So I dont welch either!

 

[trainspotter]

tragic

 

[nunthewiser]

Muppets.

I own a company we have 12 in the fleet.
I will gladly place on this site for you Nun all rego papers it will cost you rightly $500 to Joe in support of allowing muppets to post on an otherwise reasonable site.

As for the statements shown For $500 each queried I will also produce the entire account for varification REAL no demo account.Think Ive posted around 5 or 6

Joe should make about $3000.

Away you go muppet I might have a mouth but I also have the goods!
Watch the muppets back off at 1000 mile an hr.

By the way dopey I also challenged a poster who it turned out HAD the goods. The bet was $500 which I sent to Joe in 24 hrs.
So I dont welch either!

lol muppets

personally couldnt care about the money ........ thats your problem if you want to pay every tom dick and harry 500 bucks .... onya ..... yes you do have a mouth my egotistical friend and personally its no skin off my nose if you verify the claims or not ....... the difference between me and you darl is that you vie and clamour for internet credibility ... wheras i couldnt give a toss


the fact of the matter is im not paying a cent for you to bodgy up some statements to tickle your personal ego but in the same sense im still of the mind ya basically full of it until shown otherwise ......... im ok with that ....... are you ?

p.s darl no need to get so emotional on this matter ..... namecalling often a great sign of limited intelligence

 

[Mr J]

Ha, lol Mr J. I thought it was fine.

Thanks Motorway, that's actually a really good way of looking at it. It's sometime easy to get stuck in a linear, static way of thinking. "Relativity", what a concept! It certainly makes you think in the "here and the now".

Which is why I'm being a hard **** about "low" price. Like I said before, and what motorway has talked about, what matters is where the price is in context for the timescale we are trading. For investors in late '07, they were taking a horrible price, but for a day trader it would have completely irrelevant. I'm confident that most if not all examples of good trades posted would be what I consider a low price.

Yes.
Your comment is absolute and utter rubbish.

Feel free to post examples, after all, I am here to learn. For now I will address the highlighted text.

"and a good price is always a low price"

Why do you disagree? The later we get into a move, the less profit range there is to capture. Whether a price is low or high is relative to the move/timescale being traded. I believe few examples you post would be a high price, from my perspective.

but it does

Here I was saying that trading isn't as simple as making a random entry in the direction of a trend. Are you suggesting that it doesn't matter and that entries are not important?

Edit, tech, I don't care about statements. Your examples don't have to have been real trades.

 

[nunthewiser]

Before anyone stomps off and sulks / threatens to leave /gets emotionally flustered

my posts are merely to point out that we all on the internet we can do/be anything we want ... MRJ already pointed out that he not posting from actual experience merely HIS view on things ..... at least he admitted it ....


internet experts a dime a dozen . ......dont make there opinion any more valuable than anyone elses tho

have a great day

 

[Mr J]

Hold up there nun, I do trade and therefore have some experience, even if it is limited. However, this discussion (and most others I get into) is not about actual trading, but about theory. I might lack trading experience, but I've dealt with this kind of theory for years, and have no reservations about getting into the mix here.

 

[motorway]

Ha, lol Mr J. I thought it was fine.

Thanks Motorway, that's actually a really good way of looking at it. It's sometime easy to get stuck in a linear, static way of thinking. "Relativity", what a concept! It certainly makes you think in the "here and the now".

On Static Vs Dynamic

think of how moving averages
oscillators
etc
and certain ( most ? ) definitions of trend

Would tend to not distinguish the different aspects
between these two charts ( Blurring & Blunting )

The aspects that are IMPORTANT

If you follow a normal random walk for a very long time, you start seeing "normal" behavior -- the small steps cannot be seen, and the overall motion is determined by the average affect of all of the steps.

For a Lévy flight, the overall position is nearly completely determined by the long, rare steps -- the "flights" -- and thus there is no averaging out of the individual steps.

At the bottom of this page are the normal and Lévy walks for 10000 steps. Those same walks, followed for 100000 steps, are shown here:

The random Walk is not and almost never can be a Stock chart
( Yet most TA is Static )

The Levy Walk is much closer to a Stock chart

Levy walk + memory is most like a stock ( any market ) chart

This is why certain moves are much more important than others


WHY THE MEAN IS NOT GOLDEN

and why ,TRENDS MATTER very much indeed..

motorway

 

[Timmy]

That is great stuff thanks motorway. Hadn't heard of the Levy Flight/walk.

 

[wonderrman]

how can you judge a low price? a low price might seem good at 2 but then it could promptly fall to 1. is that an even better lower price?

how can you judge a high price? it might seem high at 10 but promptly rise to 12? is that an even higher price?

"buy low sell high" is a cliche that is as ridiculous as "buy high and sell higher". i would argue that the later is a tad more right then the first though.

the hypothesis behind buy high and sell higher is that we should only buy in uptrends, so as traders we will most probably always miss the the lowest low (the "bottom"). so buy high and sell higher is considered to be more right as we will buy high, in turn to make sure we do not experience losses of capital while waiting for the final low to take place (buying low in the downtrend). we're simply riding the primary wave of the uptrend.



the only thing that matters is the time involved and the point on the chart. as traders we want good entry points compared to a previous position on the chart. traders shouldn't care if the price is low, high, or in the middle. if the pattern as you view it looks good to make some profits we should take the trade, who cares if the price is 2 or 10.

wonder.

 

[tech/a]

Which is why I'm being a hard **** about "low" price. Like I said before, and what motorway has talked about, what matters is where the price is in context for the timescale we are trading. For investors in late '07, they were taking a horrible price, but for a day trader it would have completely irrelevant. I'm confident that most if not all examples of good trades posted would be what I consider a low price.



Feel free to post examples, after all, I am here to learn. For now I will address the highlighted text.

"and a good price is always a low price"

You have no idea how low or high a price is at the time of the trade.
Only in hindsite.


Why do you disagree? The later we get into a move, the less profit range there is to capture. Whether a price is low or high is relative to the move/timescale being traded. I believe few examples you post would be a high price, from my perspective.

but it does

Here I was saying that trading isn't as simple as making a random entry in the direction of a trend. Are you suggesting that it doesn't matter and that entries are not important?

Thats exactly what Im saying.

Edit, tech, I don't care about statements. Your examples don't have to have been real trades.

They will be real.
I have provable trades going back to 2002 ish.

 

[Annwn]

OK, back to the thread -

A Traders Ten Commandments

1. Thou shalt cultivate patience and use it diligently.

2. Thou shalt cut losses, lest thee lose a lot instead of a little.

3. Thou shalt not be greedy lest thou squander all thy profits.

4. Thou shalt eye all charts as a hawk eyes prey, and determine their meanings.

5. Thou shalt embrace Bull and abhor Bears, unless thou knowest well how to sell short

6. Thou shall never act on tips alone from anyone, including forum participants.

7. Thou shalt know thy security well, in all its aspects.

8. Thou shalt absorb knowledge all the rest of thy days, and apply it meaningfully.

9. Thou shalt not panic, for panic leads to irrational acts.

10. Above all, thou shalt think for thyself

Not sure where this came from originally, but is stuck to the front of my trading plan.

Cheers

 

[Mr J]

"buy low sell high" is a cliche that is as ridiculous as "buy high and sell higher". i would argue that the later is a tad more right then the first though.

It may be a cliche, but it is dead on, as that is how a trader secures a profit.

the hypothesis behind buy high and sell higher is that we should only buy in uptrends

Not at all, you just seem to be looking at it as a straight-forward statement rather than as an idea. The order doesn't matter.

we want good entry points compared to a previous position on the chart.

Yes, and my argument is that any good entry we do take is a low price, whether or not we may perceive it as low. You can mark any point on that chart, and it is probably possible that at some timeframe it is in fact a low price. The problem is people look at that chart and see the obvious movement there, rather than considering what may be happening on slower or faster timeframes. Many prices that would appear "high" on the chart would be "low" on a faster chart.

 

[mazzatelli]

The random Walk is not and almost never can be a Stock chart

The Levy Walk is much closer to a Stock chart

Levy walk + memory is most like a stock ( any market ) chart

WHY THE MEAN IS NOT GOLDEN

and why ,TRENDS MATTER very much indeed..

motorway

That looks alot like Geometric Brownian Walk which would suggest stochastic trends/random process
EDIT: motorway, I noticed that GBM can be characterised by Levy

 

[Aussiest]

the hypothesis behind buy high and sell higher is that we should only buy in uptrends, so as traders we will most probably always miss the the lowest low (the "bottom"). so buy high and sell higher is considered to be more right as we will buy high, in turn to make sure we do not experience losses of capital while waiting for the final low to take place (buying low in the downtrend). we're simply riding the primary wave of the uptrend.

the only thing that matters is the time involved and the point on the chart. as traders we want good entry points compared to a previous position on the chart. traders shouldn't care if the price is low, high, or in the middle. if the pattern as you view it looks good to make some profits we should take the trade, who cares if the price is 2 or 10.

This is actually a really good way of explaining it. Thanks for clearing that up Wonder

 

[Wysiwyg]

You can mark any point on that chart, and it is probably possible that at some timeframe it is in fact a low price.

Everything is comparative. (in life too) Well done.

 

[tech/a]

This system buys high and sells higher.
Has been traded live for 5 yrs and just started up again after 2 yrs "swithched off"

http://www.thechartist.com.au/forum/ubbthreads.php?ubb=postlist&Board=53&page=1

If you want to read a few thousand pages on it.

Here is the Equity chart up until it was shut down (All trades exited at a period of time).

 

[wonderrman]

Yes, and my argument is that any good entry we do take is a low price, whether or not we may perceive it as low. You can mark any point on that chart, and it is probably possible that at some timeframe it is in fact a low price. The problem is people look at that chart and see the obvious movement there, rather than considering what may be happening on slower or faster timeframes. Many prices that would appear "high" on the chart would be "low" on a faster chart.

your argument is fine and i don't really have any care for it. my point is a "low" or "high" price of a stock doesn't really matter at all. who cares if the price is low or high, as long as the chart works it doesn't really matter one iota if if the price is a low one or high one.

time is the key.

btw, some trading rules as the thread suggests.

1. buy accumalation, sell distribution, do nothing in consolidation

2. confirm with volume

3. protection with stop loss

4. don't take tips

5. don't smile about a stock and don't cry over one either

wonder.

wonder.

 

[sammy84]

A few more rules which I found have saved me;

1. Know when to sit out. There is no point trying to trade a market which doesn't currently suit your trading style.
2. Find other distractions so that you don't just trade for the fun of it.

 

[tech/a]

Which one/s are best lows to buy?

 

[Mr J]

Here is the Equity chart up until it was shut down (All trades exited at a period of time).

And there are plenty of "low" prices visible on that chart. There would be many, many more on a faster chart. I think you may be misunderstanding my definition of a low price. It doesn't have to be low visually on a chart, but low relative to the prices surrounding it. A low price is simply what a trader would view as an attractive price.

my point is a "low" or "high" price of a stock doesn't really matter at all. who cares if the price is low or high, as long as the chart works it doesn't really matter one iota if if the price is a low one or high one.

You may ignore it, but that does not mean it doesn't matter. If you're a sensible trader, you don't ignore it whether you know so or not. As you said, timing is key, and good timing means taking an attractive price.

Which one/s are best lows to buy?

That has absolutely nothing to do with what I'm talking about.