100% Guaranteed Way to Blow Up ANY System

Quote from RedTankEra:

Bullshit.
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This thread definitely falls into that category

Using leverage – not an issue
Using stops – not an issue
Day trading – not an issue


An underfunded trading account – problem

RN
 
Quote from Kensho:

Yeah leverage is the destroyer of all investment/trading strategies. Leverage never makes a bad strategy a good strategy but always/eventually blows up even the best strategy. A small trader that is forced to use leverage is wise to eliminate it as his account grows.
Seth Klarman delivered 20%+ returns for 30 years with no leverage and having cash levels above 50% at times. So you really don't need leverage for great returns just patience.
But patience gets Forced away from a trader using stops because he is Forced to use them due to the amount of leverage he uses and thus he gets Forced to exit the position usually that the price he originally wanted to enter. And using stops usually leads to impulse entries due to the illusion of safety they provide.
The only true risk management is: (1) limiting leverage (2) proper diversification and (3) patience to wait for the fat pitch. Then you can have infinite patience with the position and basically dare the other side to run the stock to zero (which NEVER happens high quality businesses).

Everything else in trading is pure garbage. Futures is garbage with 30-1 embedded leverage. Same with options with their leverage + time decay. Indicators are useless. Stops are for losers. Gurus like NoDoji and Jerk Hershey are garbage. And lastly the "the trend, is regrettably, not your friend."
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have you blown out your account trying to short twitter? Don't worry, hang in there...:D
 
Quote from Kensho:

Only amateurs use stops. Pros never need them.
Hedging with options costs too much money. Going to cash is the best hedge. Amateurs hedge, pros just raise cash.
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100% guaranteed way to blow up any system.
 
Quote from Kensho:

Yeah leverage is the destroyer of all investment/trading strategies. Leverage never makes a bad strategy a good strategy but always/eventually blows up even the best strategy. A small trader that is forced to use leverage is wise to eliminate it as his account grows.
Seth Klarman delivered 20%+ returns for 30 years with no leverage and having cash levels above 50% at times. So you really don't need leverage for great returns just patience.
But patience gets Forced away from a trader using stops because he is Forced to use them due to the amount of leverage he uses and thus he gets Forced to exit the position usually that the price he originally wanted to enter. And using stops usually leads to impulse entries due to the illusion of safety they provide.
The only true risk management is: (1) limiting leverage (2) proper diversification and (3) patience to wait for the fat pitch. Then you can have infinite patience with the position and basically dare the other side to run the stock to zero (which NEVER happens high quality businesses).

Everything else in trading is pure garbage. Futures is garbage with 30-1 embedded leverage. Same with options with their leverage + time decay. Indicators are useless. Stops are for losers. Gurus like NoDoji and Jerk Hershey are garbage. And lastly the "the trend, is regrettably, not your friend."
More...

Kensho, I trade a lot like you, and I like that style, but I have been unsuccessful. Also, I trade options, I don't think you do. It seems your strategy is fundamental based. Can you share with us they style of trading you have? I'd love to know since I have been unsuccessful doing things very similar to yours.
 
Quote from NoDoji:

Wait a minute.......are you saying that there's a broker who doesn't charge commissions if you don't use stops???
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He is saying he goes to cash to avoid risk.

When he is in cash he stops using stops on cash

He feels that you do not need to use stops when in cash on sidelines

His broker does not have a sideline charge during RTH.

If he sees a trend, he automatically knows the trend is not his friend.

He thinks further: "I'm in a trend and my stops are not helping at all.

He goes further: I better sideline because of this trneding. On sidelines he gets no broker fees so he is saving broker fees avoiding being in trends where stips do not help and he has somewhat and a little less risk.

This is 100 % backtested and NEVER loses any money of fees or comish.
 
Quote from Kensho:

Stop losses are for losers. Just by simply not using stops your trading will improve tremendously because you will find ways to truely reduce risk.
I've used stops on every single trade for YEARS and all I did is run up huge commissions/slippage costs that bled my account constantly. Stops offer a false sense of security. Its a form of risk management that simply hides/masks true risk.
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I agree. You plan around black swan situations by identifying the market conditions, not by using stops.
Typically, you waste as much or more due to being stopped out in a normal market a number of times as you would by using stops for that once in 3 years situation.
 
Quote from Kensho:

Seth Klarman delivered 20%+ returns for 30 years with no leverage and having cash levels above 50% at times. So you really don't need leverage for great returns just patience.
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Didn't realize we all had millions of trading capital at our disposal so that 20% returns are plenty. Do any of us really have 30 years?
Leverage is just a tool and used reasonably, it's the best tool out there.
 
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