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An interesting discussion and brainstorming… OK., based on your statement that “…Because if you REDUCE risk on a position that means EXACTLY THE SAME as simply bailing out some part of the initial position…..” If you bail out some part of the initial position, you completely lose...

You place a naked trade...what else could you do that would reduce your risk while it could increase or decrease by variable amounts your potential P/L. Since you are supposed to have a directional Bias, then the hedge is taken accordingly whereby price deficiencies should work to your...

when you say hedge with a short... what do you exactly mean? that it would translate to "..bailing out.."? This statement could only be true if one hedged using the same instrument in a different account which I have already rejected! If not the same instrument then your statement IS wrong...

sorry..., I'm at a disadvantage here for having to protect the details of my strategies. But take the roulette example and try to find the trading equivalents of which.

Not a true statement! Again as in the case of the Roulette, you hedge to reduce your risk exposure and it could reduce your gains but depending on the outcome it COULD also add to your gains substantially too... If you chose 29 and covered the corners and 29 it was, then all your bets turn into...

not only a long and a short in the same instrument doesn't make sense, it is also illegal. How do you play roulette? Just place your money on a single number, or hedge the number you like by placing chips all around it or the opposite color etc....?

Here's a perfect example: 6:30 AM ET. The low has been ES 1309.50 which needs to be revisited and I have a signal saying that 1335 must also be revisited, preferrably same today? The need to have a short term short and a longer term long! p.s. I won't touch it yet, since some pairing...

The latter part of your post best explains the situation but on your other comments, think of it this way for simplicity: 1- We can never time the market accurately, right? 2- You have a short signal issued and follow it. At the same time the market issues a continuation to the up side because...

very well put... +1

Exactly, that is what my plan is about too. Since I am not compounding and neither abusing leverage, even if originally stay well below objective curve, it will eventually finish on target and hence no need to gamble.

Andris, Thanks for taking the time to share with us your valuable experience and in fact it is absolutely so as you have mentioned it and very risky to just straight out bet on the oversold and overbought situations Vs. rather they should only be utilized in combination with other factors and...

I use my own methods, learnt by experience but, I have read in other threads about traders utilizing pairing instead of stops. You can search for pairing and I am sure you'll find some leads. Let me also make it clear, I DO NOT recommend naked trading without stops but rather recommend using...

sandyG…, I do have a daily loss limit with my broker which is set at $2500(rather on the high side, I know!) and recently when down 2700 in 1 day, it hadn’t kicked in yet, so I terminated trading for the day myself to avoid getting liquidated by the broker(the embarrassment…lol). As...

Thanks MandelbrotSet for the support. The worrying thing is, to learn that one still needs to go through the school of hard knocks after having visited it already many, many times over! Our breed is generally one of quick learning function but when it comes to the markets, apparently, No One...

Actually I did have quite a few problems! First and foremost, got a little careless when reached a high of $22.5k and took my eyes off the ball and the market quickly corrected the lack of humbleness and took me back down to $18.2k… Well that aside, also picked up a couple of viruses, while...

Day 7, (Mon. 03/17/08) 13:00 ET. Done for the day.. details here: http://www.elitetrader.com/vb/showthread.php?s=&threadid=120132&perpage=6&pagenumber=7

Day 7, (Mon. 03/17/08) 13:00 ET. Done for the day.. 51 Trades +$849 Net. = % 4.72

Would a small firm, future's broker doing own clearing be in danger of insolvency? Do broker's also have the equivalent of the FDIC guarantee? IMO, they should not be effected by the recent credit crunch problems unless their clients miss margin calls! What are the signs of a Bank or...

I've looked at Ninja briefly and liked it a lot Vs. all the other platforms I've examined. Also take a look at the Sierra Charts, which I'd personally give it a 60% rating. Tradestation's charting used to be good by early 90's standards but it is way too obsolete now and not worth the...

Do not flatter yourself, the tax liability must be due tax evasion, although I doubt if a mentally handicapped, Surdo individual has ever reached, let alone having exceeded the tax bracket threshold. Thank you for following my journal, as you have noticed, extremely successful trading is not...