Wherever you heard that, Dave, I'd respectfully suggest that in future you might want to ignore all trading-related "information" from that same source, just in case it's all of the same quality and reliability.
2% stop loss rule?
- Thread starter turkeyneck
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Wherever you heard that, Dave, I'd respectfully suggest that in future you might want to ignore all trading-related "information" from that same source, just in case it's all of the same quality and reliability.
Wherever you heard that, Dave, I'd respectfully suggest that in future you might want to ignore all trading-related "information" from that same source, just in case it's all of the same quality and reliability.
Uncle Buffett used to say: In life you don't often see a fat pitch, so when you see one DON'T bunt.%%Wherever you heard that, Dave, I'd respectfully suggest that in future you might want to ignore all trading-related "information" from that same source, just in case it's all of the same quality and reliability.
IBD+ they know how to make money, allows risks 7 or 8%; but that's per stock/cash , not on capital or account.LOL Good question
To small a stop loss is counter productive+ too commission intensive /waste....................................................................................So I shouldn't day trade?%%
IBD+ they know how to make money, allows risks 7 or 8%; but that's per stock/cash , not on capital or account.LOL Good question
By the way, what is the logic for 7%-8%? I read O'Neil's book, at one time tried to implement his 8% rule and was stopped out on FB (at $20), GOOGL (at $500), AAPL (at $450 before split). I am still waiting for FB to get back down below $100 so I could get back in.
I no longer have an artificial 8% stop on my trades. Some coaching on this will be greatly appreciated.
Thanks.
Wherever you heard that, Dave, I'd respectfully suggest that in future you might want to ignore all trading-related "information" from that same source, just in case it's all of the same quality and reliability.
Thanks Xela. It's just something I heard in the past, it doesn't mean I'm going to use everything I hear. This information was from someone who works in treasury at a big Austrian bank for more than 10 years (can't say the name) and he is a close friend, but it's not important. I just wanted to share my opinion, thanks
%%So I shouldn't day trade?
By the way, what is the logic for 7%-8%? I read O'Neil's book, at one time tried to implement his 8% rule and was stopped out on FB (at $20), GOOGL (at $500), AAPL (at $450 before split). I am still waiting for FB to get back down below $100 so I could get back in.
I no longer have an artificial 8% stop on my trades. Some coaching on this will be greatly appreciated.
%%
Thanks.
Its like Paul Tudor Jones having a 9.99% stop, but not a 10%.Ironchef,do i believe PTJ would use a 9.99% stop, never 10%?? YES;older oil trends+ 1987. .....And that is per month,NOT per trade!! Yes.And he must have a better than average hit rate, he cuts back when losing. With an average hit rate , no need to cut back.
And its [IBD] stop 7 or 8%; so $35 or $40 on $500 GOOG looks right[ So it had to be the wrong timing, or SEPT slop sell off] Im not trying to help the FB shorts LOL; even if you were kidding about buy FB @ $100?? i would not buy it now @100 , why??Its number 6 in group almost 7 stocks better than FB + its only keeping pace with QQQ[average benchmark],
year to date 6 months; but FB doing better [than qqq] in past 4 weeks. I cut a loss on small cap SUPV, so cant do super all the time LOL
[Edit some said he not dong average now; thats OK, he did 5 years @100%per year, rounded up. He may not have a monthly stop that wide now, but that does not change my point]Thank you for taking to time to reply Mr. turtle. I think I understand what you are trying to tell me.%%
Its like Paul Tudor Jones having a 9.99% stop, but not a 10%.Ironchef,do i believe PTJ would use a 9.99% stop, never 10%?? YES;older oil trends+ 1987. .....And that is per month,NOT per trade!! Yes.And he must have a better than average hit rate, he cuts back when losing. With an average hit rate , no need to cut back.
And its [IBD] stop 7 or 8%; so $35 or $40 on $500 GOOG looks right[ So it had to be the wrong timing, or SEPT slop sell off] Im not trying to help the FB shorts LOL; even if you were kidding about buy FB @ $100?? i would not buy it now @100 , why??Its number 6 in group almost 7 stocks better than FB + its only keeping pace with QQQ[average benchmark],
year to date 6 months; but FB doing better [than qqq] in past 4 weeks. I cut a loss on small cap SUPV, so cant do super all the time LOL
Well, the 4-5% drawdown is a very common risk management metric for hired gun PMs at multi manger funds. So it’s not that far from the truth, oddly enough.Wherever you heard that, Dave, I'd respectfully suggest that in future you might want to ignore all trading-related "information" from that same source, just in case it's all of the same quality and reliability.
Eg Millennium uses 5/2.5 drawdowns for their PMs - after first 5% drop your risk is halved; then another 5% (or 2.5 on the original capital) and they show you the door.
Thanks Secret Santa for affirming my statement. Could you explain me what u wrote. What do you mean "after 5% drop risk is halved". I don't understand this.
Let’s say a PM got 200 million to play with. If he loses 10 million (5% of 200), they take half of the capital away until he recovers. If he loses another 5 million, he’s out. It’s a bit more complex but that’s the gist of it