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    Addicted to Average Down?

    I know exactly how you feel, and it makes me wonder if you are contrarian. The way that I solved this problem is that I keep looking and scanning for stocks. About 4 months ago I was holding around 100+ stocks in my portfolio. What people forget is that with momentum or contrarian you...
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    Addicted to Average Down?

    Here is the situation. Let's say that you have a stock. You can't predict whether you go up or down. However, most technical analysis and people do try to predict. So now you are caught in a bind because any money you put into the market is a crap shot. So assuming that there are crap shots...
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    Any spread trading horror stories for the week?

    To say that the problem was Obama is wrong. Jim Cramer himself said that if Scott Brown was elected the market would go up. Look what happened. I play contrarian and option selling. Three weeks ago I saw that I had to profit take a number of stocks. I thought it was a one off, but they kept...
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    Addicted to Average Down?

    I thought so I would get this reaction. And frankly I don't care. Why? Because I do things by statistics and probabilities. I am an engineer by trade and frankly I hate risk. So when I got into the stock market game I decided to use my programming skills and thought, what would be the best...
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    Addicted to Average Down?

    Nope... Increases the risk... I average down until my risk for the stock is fulfilled or the stock is profitable. Again going through the numbers averaging up has the problem of increasing your risk without added gain.
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    Addicted to Average Down?

    Nope... Because my wife would not let me! Seriously, my wife would not let me. My wife runs the budget, while I choose the investments. And we are conservative. Because we have already been blown out of the water. Around 1997 just after we graduated from university my father contracted...
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    Addicted to Average Down?

    Ok, I can understand where you are coming from. The problem with the averaging down strategy is that you need to pick the time carefully. And you need to pick the amounts to average down carefully. I figured these things out statistically by doing backtests. Doing this with trail and error can...
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    Addicted to Average Down?

    The last sentence says everything about the wrong approach you are taking. Why on earth did you have positions on hand that could wipe out your account? I learned that lesson very quickly, and vowed never to have a position get out of control. When I closed my GM position I lost 75% of my...
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    Addicted to Average Down?

    I am going to disagree with you. Let's say that you are doing a pairs trade. So you enter a trade and you find that the gap widens against your position. You have at this time an unrealized loss. The question becomes do you exit? Answer no because as the gap widens the pairs trade is saying...
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    Addicted to Average Down?

    BINGO! If you have the account size you can ALWAYS make money. The problem I feel why people blow up is because they want to make oodles and oodles of cash. I try to make between 20% and 45% per annum. That's my goal, no more and no less. For example this month I made my monthly target, have...
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    Addicted to Average Down?

    Actually I asked myself the SAME question. It turns out the approach would work IF you could predict the future movement of a stock. But since you can't you will always miss and get in at a worse position. Hence you just need to stick it out. I did this analysis using statistics as well and I...
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    Addicted to Average Down?

    I actually did the statistics, and average down does work... But with averaging down you need to pay very close attention to your risk and position size and when you average down. For example, let's take Apple. Say you invested in Apple at 220. Well averaging down at that level is a great way...
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    For any professionals who trade options on IB...

    It's called IB Risknavigator. http://www.interactivebrokers.com/en/software/pdfhighlights/PDF-riskNavigator.php?ib_entity=uk I don't use it because being somebody who can calculate this stuff I do it with Excel since there are some additional probabilities I want built in. Christian Gross
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    Firms that allow naked options selling

    They all allow naked put selling...
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    Nvidia Quadro FX3800, 1GB RAM, NEW... care to make offer?

    I could actually say the same of you. Take a close look at the card, it has CUDA... Professional's in the market you would know CUDA is very handy when you have to price options on the fly and need oodles of CPU...
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    50-100% monthly returns

    I saw in another posting that he was using 20x leverage. That boils down to 2.5% per month unleveraged. Making 2.5% is not that hard. Actually your friend is doing the right thing. He only trades what he can blow up in a month and takes out the rest. I am guessing he has enough padding that...
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    TimeStamps on Upgrades/Downgrades?

    Do you have a bloomberg? BBSA
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    A question TWS

    I run into this all the time. Especially since I have 100+ positions and have to organize them according to type. The best trick is not to save on the server, but to export and then import the settings. This is especially effective since I have paper accounts, and secondary user accounts...
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    Want to bet Euro won't drop below 1.48 within next few days ?

    Yeah because the Yanks are selling the crap out of it... I looked at the hours for the past two weeks and have noticed that the Americans did the first sell off, then the Europeans, and finally the Asians. But throughout the entire time the American's have been sellers, and that makes...
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    Want to bet Euro won't drop below 1.48 within next few days ?

    I think right now commodities and FX have disentangled themselves. THOUGH this could also be the December effect. Though I agree that Ben is a dollar crasher, and I think he has no other choice.
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