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It was tongue and cheek. I frankly do not care what you think.

let's IB! add me to your spdl

Can thinkorswim plot the yield curve of the 5y10y20y fly? Can you deal, blast IOIs, and coordinate syndicates on Thinkorswim? Can you chart price, earnings events (incl surprise), key events, and estimate data at once on Thinkorswim? Does Thinkorswim have its own team of analysts across all...

Using notepad doesn’t. Using a note taking app that allows you to tag and organize data in a more meaningful way can. But this is marginal. What I’m talking about is understanding what drives returns and where your edge comes from.

You have a funny way of agreeing with me.

Let’s just say those traders have robust risk management. Some folks use atr or volatility adjusted stops, but they understand that it is not optimal, they just prefer a simpler way to set a risk budget. The concept of a stop loss, or limiting losses, is rooted in gambling theory. Your...

Stop telling people they can make money by drawing lines on a chart. :p

If you’re trading e-minis then you really only have two price-related strategies: basis trading or momentum. I don’t know what you and your retail group does, but if you think you are scalping and you are not basis trading, then you are betting on a 6 spade as a high card preflop (random, not...

Yeah that’s not going to work. What’s strange about this post is that there are actual ways to see when institutional investors are entering a stock, lol. You can search for block trade prints and read 13-Fs.

The usefulness in risk management is that it lets you stay in the game. But you’re right in that if a trader doesn’t have an edge it doesn’t matter if they manage risk.

That’s a long winded way to say I’m right. Why are you suggesting using a style of trading that you know, and admit, does not work. Personally, I find it unethical to suggest that people can make money in the markets using clearly outdated tech/theory and with limited knowledge. By the way, I...

What kind of ongoing work and analysis would you do to find out where institutions are placing stops? Also what institutions are you talking about?

I see gamblers at the casino putting up lots of money too. Their strategy isn’t a winning strategy is what I’m getting at. And that’s why they didn’t make it (and is why other firms have — such as IBKR, Susquehanna, Jane St, Virtu, Citadel, and the banks).

Is that why they’re all out of business now? Susquehanna and Goldman ate their lunch.

The question you should ask is this: is support and resistance, as you measure and define it, a real tradable signal, or is it as good as betting that your 6 spade is the high card preflop? My question to you is why aren't you learning about the different hands and optimal combinations that...

I'm sorry but you don't know what you're talking about. Risk management systems everywhere from Goldman Sachs to Citadel don't predict an optimal stop price. They allocate capital (add and remove) to traders based upon drawdown %, the volatility of drawdowns, and risk budgeting. These concepts...

Trickle down does not work. A big reason why is because of the propensity to spend. If you have $100MM and get another $50MM, chances are you will save most of it. If you have $100 in your bank account and get another $50, chances are you will spend it. Money has greater velocity when it is...

Risk management can be an edge. But most people would define an edge as a reason why you are able to make a prediction that is more likely to occur. Your edge might be analytical (better understanding of how markets work), informational (access to better information), or logistical (faster...

You can't know the optimal stop ex-ante. The best way to establish a stop is by having two catalysts: a budget stop and a thesis stop. budget stop should be how much you are willing to risk on any trade x confidence thesis stop is when your thesis changes If you are trading momentum or...

Infectious Greed. Also, any intro macroeconomic textbook & corporate finance textbook.