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Many don’t, and therefore hit an earnings cap for their style. This is one of the reasons I chose position trading as my core. With these trades I can take 100 shares or tens of thousands, so I have fewer limits on my growth. This is correct, and is why I stopped reporting my room trades...

Here is something to ponder.... This is a quote from the Ed Seykota interview in the “market wizards” book.... “During this period the accounts that Seykota managed have witnessed an absolutely astounding rate of return. For example, as of mid 1988 one of his customer accounts which...

No clue, and couldn't care less! :D All I'm interested in here is how will the market respond to THIS level. '29 was before my time.....Hell '87 was too! :) -Bo

Have you ever tried trading deeper time frames? It sounds like you are victim of “infowash”. Too much information washing through your brain. You’re a step behind, and this leads to the anxiety and chasing, missing etc... If you back off a bit, then you have time to observe, formulate...

Market just peeked to a new low and broke under 7700. Extreme TICK reading have been coming in like clockwork. Rather then buy the DIA or go long futures I'm taking out of the money calls in DIA. 84's will give me a very nice risk to reward ratio if my prognostication is proven correct...

In April of 2001 I posted this message showing where I thought the major support lurked for the Dow. We are there, and will test these levels with the market very oversold. This is going to be fun! -Bo Here is the post link, I'll copy and paste the text...

It is :) But it helps to give a basic idea of what is reasonable, and can cut through some of the fantasy. No matter what your style as a trader, your income and percent return is always a function of the level of risk you take. I get folks in my room all the time who think they can make 100k...

This question is not really answerable based on that info because it gets into personal stats like what is avg drawdown, avg win/loss streak duration, etc.... As good baseline, I’d suggest risking no more then 3% of you cash account value on any given daytrade. Personally I take 1%, and...

You have got to be kidding me!! If you size positions like you are trading with 200k, then a 2% position would mean $4,000 risk. If you took a 10% drawdown on your “200k” your real money account would be cut by 40%!! This level of risk will blow out an account. Leverage is a tool...

Be careful swing trading with the PDT rule. The avg win/loss streak inherent in this style will cream ya. In my room I have always done a mix of deep time frame position trades and 1-3 day swings. Since the PDT rules came into effect, I’ve seen my traders struggle with the “PDT death...

That's actually one of the reasons I love "Reminiscences" Candletrader! I learned more about what NOT to do from that book then anything else. I read it early on in my “career”. The wild swings of this guys life, his stubbornness and heavy “plunging” really put the fear of the trading...

With this kind of market interest I strongly suggest you look into a position trading style. (Trades taken off weekly charts with multi week holding expectations.) You can enter and manage these trades with stop and limit orders, so they don’t need to be babysat . If you have the patience...

Enjoy the vaca Darkhorse! Will miss your voice on the board tho! Always enjoyed your posts... -Bo

I could make a long and impassioned post about why I think swingtrading is the only thing and why it works the best for me personally and the folks I’m teaching. But then I look over at Chris and Vadym, and the folks who are doing so well with that tape reading day trade style, and at Allen...

Great post! You nailed it. As independent traders we are totally focused on pressing our edge. It can be easy to forget that many of the big dogs are not just larger and more expert versions of ourselves. They are playing a different game, and are bound by different rules. (Some that are...

I'll never forget the surprise fed easing that cause the ultimate blow off top. The market was a nobrainer countertrend short off an oversold move in a nice uptrend. Super sweet shorts around, then in the middle of nowhere Greenspam eased...... IMO to stave off the selldown. Had the same...

Hmmmm, a quick question?? If that was capitulation yesterday, the magical washout that Kudlow was foaming about last night, then why are we gapping down this morning? That 400 point rally in the Dow was formed WITHOUT deep wiggles, did somebody anoint themselves the JP of the <cough> '02...

Uhhhh yeah? I think I’m a very accurate stock picker, and I just finished an 8 trade win streak which I thought was epic. :) That’s only happened twice this year, I had a 9 winner streak in Jan, but avg is a lot more like 3-4 in a row. The best traders ALL lose money! The...

Your original question is oriented incorrectly IMO. Your second question has the important information... How much margin you use to me is immaterial. Instead the question is how much of your capital is at risk? If you are going to lose 2k when wrong, then IMO you should expect a min 2-6k...

Publias! Loved the washers story! Don't know if you are a golfer or not, but you should check this book out. "Dave Pelz's Short Game Bible: Master the Finesse Swing and Lower Your Score" One experiment was fascinating to me. This fellow analyzed the results of pro golfers 2nd shots...