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Yes, it was nasty. But also a good reminder to remain diversified in the portfolio. Excluding all biotech is a possibilty as the risk/reward seems to be too much on the risk side. But bad things can happen to any individual stocks. Even if we can avoid the known events such FDA reviews, or...

For this specific system, NO event would have to happen for me to always use hard stops. This system is based on tested criteria and time stops only is one of them. Using a stop SIGNIFICANTLY reduces the profitability of the system. If/when the system loses its edge, I will reduce my capital...

I might be wrong on that but it looks to me that the "big guys" will not let the markets go much lower before year-end. Because of the low volume, it would not take much of buying to squeeze the shorts. This is what I am going to watch on Tuesday morning and play a bounce in the Qs and SMH. VIX...

5 days mid-July. Actually I had only 58% profitable days this year. 2-5 days Swing trades here. I am done for the year for individual stocks. I might take some long positions on Tuesday in some beaten ETFs such as SMH and QQQQ. Should bounce back. Quite extended here

Thanks empee. You are so right. When everything is doing well and dandy, it is easy to feel strong. Adversity is a great teacher. But I think too many traders change their strategies based on the last event. The day after, my system recovered half of the losses I experienced on NFLD. Backtesting...

Forex - forex is definitely one of those who read well a post ! By the way, I just mentioned that I do not use hard stops. Obviously this trade in NFLD was THE exception because of the upcoming announcement after market. Generally speaking some insiders know what is going to happen and buy or...

No hard stop loss. Only time loss and criteria on volume/stock above 10$. When backtesting, I could not find an edge with hard stop losses. It actually reduced my returns. So no hard stops. Remember that even after that trade this system is still up 48% this year with a maximum drawdown of 8%...

Actually we could see this rare event of 5 consecutive lower close for the Nasdaq this week. Very rare indeed. I am always fascinated to see the way the markets trick most of the people.

Yes, they need to call the cavalry if they want to keep some profits. Actually, as usual, there are winners and losers even if you were long this market. Semis are about 9% down this year as a start ! I think some people are anticipating the "expected" correction early 2007. To be seen. Markets...

Interesting thread, to say the least ! My intention was to share an experience on a trade which turned out as a loss. I just would like to thank those who gave me some advice and those who thanked me for sharing. For some others, I just hope that they trade better than they read ! I 'll...

For me gambling is not taking a position in a stock but rather risking too much on that position. I trade 2 systems. 60% in System 1. In this system, I allocate no more than 10% to an individual stock. So, if I lose 100% in that individual stock, I lose 6% of my total capital. This is the way I...

Myself, of course. Not even close !:D

OK> My goal is not to make money on the options, as much as protecting my capital invested in stocks. Also, I keep stocks only for a few days, like 2 to 5.

Why do you say that, rallymode?

Thanks, Optioncoach. I am definitely going to study the possibility of optioning the high risk stocks I buy. And biotech stocks qualify as high risk ! This business is all about learning and improving. I appreciate your suggestion and I am going to include this "safety net" in my backtesting.

Thanks for the tip. The way I trade is to trade two swing systems , long, only. I "hedge" through shorting ETFs when the market is extended. Options is ...an option. I need to see if it would have improved the returns of my system 1, which are pretty good without options : 2002 =+18% (Test) -...

Don't be sorry about my loss, because I am not ! It is part of trading, unfortunately. I have only a 56 % win rate ! I am not sure I understand what you mean with the 90% in stocks. They are obviously in other stocks, not on NFLD !

I make money by buying "difficult" stocks. If I start rationalizing why I should not buy, I would not be 48% up this year with this system, long only. And I KNOW, thanks to backtesting, that a 50% decline in one stock is possible, about once a year, out of 600 trades. So I keep my exposure to...

I just wanted to report my trade on NFLD. (swing trades 2-5 days) I bought 800 shares of NFLD on Monday at 15.01 (10% of the capital allocated to my system 1). Tuesday afternoon, there was a quick drop of 10%. Looking at the news, I saw that NFLD was going to have an unplanned teleconference...

Sorry, I do not argue. I just think such studies do not have scientific evidences. Probably very difficult to perform. Which magazines, which cover, what timing, etc.. I definitely cannot and do not want to prove the studies are right/wrong. I am just saying I ignore them. They do not...