Search results

Just noted 65% of the clients with the firm I trade with who have Dow positions are already short. Usually a hold long signal.

"humble" opinion suggests an apologetic attitude but your vocabulary "baloney" goes against that. Say what you mean to say without affecting humility.

"imho profitable is baloney"............ Doesn't sound very humble. If you have an opinion, you should give it without apology.

Happily, I have produced a categoric definition of a trend - a trend is a trend if its a trend which I can trade using my trend-following strategy. Makes every chart clear. I sleep well.

Yes. Trend is the base pattern of all markets. The most probable next action by price in a trend is continuation.

padu mate, this is the wisest thing you have ever said.

I rarely short the US indices because they rarely form long-term downtrends with smooth gradients and modest pull-backs. Having taken five figures of profit out of the indices in January, I'm interested but also feel confident to wait out a downturn until I can go long again.

Assuming this is correct, what to do depends on your investment/trade time horizon. If I was in stocks for dividend income, not capital growth, with the intent of willing my shares to my beneficiaries on my death, I would do nothing. If anyone's in it for less than this they need an exit strategy.

This is very true. New traders clearly think there is a set definition of a trend, like someone's personal fingerprints or DNA. In reality, my trend is a trend if I can trade it.

Maybe. I never look at intra-day charts.

So you say every trend reverses?

In practical terms, this is just theoretical, since not all trends make a recognisable and therefore trade-able reverse. In most markets there is going to be an equal number of uptrends as downtrends, if you measure over a long enough period to have a statistically valid sample. Except for...

I don't trade intra-day but isn't it obvious that trend reversals can never be as common as trends? Suppose you have a market that features 10 trends in a given period. Not every trend ends in a reversal, some run into ranges, some go into a range and then actually resume the original direction...

My only question is, "Why go for such a high risk strategy as trading reversals when you're still a not-yet-profitable trader?".

There's no hell because there's no after-life. We live, we work, we die, that's it. If you're lucky it will be in that order.

I hope to die surrounded by the things I like to have, precisely one day before the cash runs out.

Its almost impossible. I'm willing to bet that the vast majority of new traders think that only day-trading is trading. I try and discourage them all from even trying it. But if you're someone who's out there reading this and making money from day-trading, just carry on doing it. But don't help...

No way!

Maybe infp types are rare in the population but surely the number of traders who've had any sort of psychological profiling is tiny? On transitting from part-time to full-time, this is not at all a given as you improve your trading skills and extend experience. I trade long-term and never look...

Thing is, the way most not-very-successful traders trade short-term forces them to absolutely finesse their entry point and then to have a TP level at which they will exit. Because the distance in real terms from A to B is not great, these differences (and spreads/commissions) are crucial and...