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But that is no longer a random entry. :)

Buy1Sell2 feels that he has to keep his edge under his hat. I'm not sure how widespread knowledge of a prudent risk management system would affect the market but I won't be getting any specifics from him. Given the same scenario. A short of 100 SPY at 10:00 EST on Monday with a 25K account size...

Can you be a little more specific? Monday @ 10:00 am EST I will short 100 SPY. (Random entry). Where do I place my stop to only risk a small amount? Assume an account size of 25K How do I determine what the noise amount is, and how far outside the noise do I place my protective stop?

I would like to swing trade SPY using end of day data. Possibly you could outline a specific risk management strategy that could be traded with a random entry.

I want to swing trade SPY;(daily time frame) Can you outline a specific prudent risk management strategy for me that I can trade with a random entry?

I'm not sure what you mean by discretionary trading. As apposed to a rules based system? If that's the case we are in agreement; discipline isn't going to help.

That says it all. If you don’t believe that something is an edge it never will be for you. If you include discipline as psychology then I believe it is an edge. Traders fail because they let their emotions get the better of them. Just having a plan with specific criteria for entries, exits...

"Stocks don’t go up because companies do well or do poorly. Stocks go up and down depending on supply and demand. If a stock is marketed well enough to create more demand from buyers than there are sellers, the stock will go up. What about fundamentals? Fundamentals is a word invented by sellers...

1) Older than dirt. 2) Swing trade stocks. Hold for 2 day to forever if the stock keeps increasing in price. If I make a day trade it’s because my stock hit a stop the same day I entered. 3) 35 years in the market; 15 years active trading. 4) I evolved with the advent of technology; from a...

Money can not buy happiness. However it can rent such a reasonable facsimile that you probably won't notice the difference.

Come up with a set it and forget it trading strategy. Enter bracket orders with a stop limit order specifying your stop loss and your target. Place your order before the market opens and then forget about it until the position closes.

We are not getting the whole story here. How much did he have in his account when he closed it? What was his lifestyle? If he made nothing trading he was only spending $62,500 a year to live. Not that much in today’s economy. You also failed to mention what might be helpful to other traders...

So you would never go 150%. It is not unusual for me to employ over 100% of my trading capital but I only risk 1% on any one trade.

How much are you willing to lose? :)

If you cannot define your edge, you don't have one. Prudent risk management should be part of your trading plan. I believe that having the discipline to follow a trading plan is part of my edge.

I’m not sure it has to have an edge over everyone else but it has to have a statistically proven probability of making money in the long run. My strategy is a simple reversal strategy that only has a few criteria. It has a win rate of 40% but the wins are larger than the losses. Year after...

Yes it is a small sample but you should get an idea of where your problem is.

I was going to preface my remarks that I wasn't referring specifically to you. I have followed some of your posts and realize that you make an effort. I have found that the majority of those who want a mentor are really seeking the Holy Grail. It might be there but I haven't found it. The...

Review your last 50 trades. Did you follow your plan? If you followed your plan then the problem is the backtested model and it is back to the drawing board. If you didn't follow your plan then the problem is the trader. If you don't have a plan it could be lack of knowledge.

There it is in a nutshell; No one wants to do the work. I have agreed to help several posters on ET but I refuse to give them a method. When I explain that they have to find and develop their own method that is usually the last I hear from them. I have to admit that I had the same attitude...