Well thats pretty great (and believable, unlike a lot of things you see here on ET). Congrats.
25 Years & $100 Million Profits... A to your Q's, Today Only
- Thread starter gnome
- Start date
Well thats pretty great (and believable, unlike a lot of things you see here on ET). Congrats.
Hi gnome, you talked about risk management as the most important part of being a sucessful trader. Can you give some specific examples how you do risk management?
1) For example pick a common stock: ebay. Let just assume you think it formed a double top and think it's on the way down to support again, so you buy 1000 shares of ebay at $33.19. Now how do you implement your risk management technique/trades?
2) Also is there ever any chance for an individual investor to buy hot ipo? For example when VMW (vmware) IPOed, everyone knew it's going up with almost 99% certainty but noone could buy it as the shares are all going to the big boys. Are individual investors basically out of luck everytime in a good ipo?
thanks and hny!
1) For example pick a common stock: ebay. Let just assume you think it formed a double top and think it's on the way down to support again, so you buy 1000 shares of ebay at $33.19. Now how do you implement your risk management technique/trades?
2) Also is there ever any chance for an individual investor to buy hot ipo? For example when VMW (vmware) IPOed, everyone knew it's going up with almost 99% certainty but noone could buy it as the shares are all going to the big boys. Are individual investors basically out of luck everytime in a good ipo?
thanks and hny!
Are you a long-term bear on US Equities?
Thanks for the enjoyable reading tonight Gnome. Have a healthy and prosperous 2008. 
T.
T.Hey Gnome:
Good thread. I've enjoyed reading it. And before I ask my question, let me just say that you're "da man" when it comes to video cards. You were a huge help to me, I know that. Thanks for that.
You mentioned you use a 4 point stop in the ES (or thereabouts I assume). You also mentioned that you prefer "swing trading" (I think). So let me ask a multipart question: First, when you say "swing trading", I'm assuming you mean multiday trades. But as I understand it, some people think of swing trades as a day trade where they might hold most of, if not all of the day. Which of those would you say would characterize your more typical "swing trade".
And then next, if you're making a multiday type of swing trade, how do you manage to begin with a 4 point stop? My personal experience is that if I'm trying to get on board a somewhat bigger type of move, then I have to take a somewhat bigger type of risk in terms of my stop. Granted, if my timing is excellent, I may have very little drawdown. But then there are those times where the basic idea for the trade is right, but I have some bigger type draw down in the beginning. I'm just thinking that in my case 4 points would have taken me out of alot of good swing trades of the multiday type of variety.
How do you manage to trade with a 4 point stop?
Thanks for your comments.
OldTrader
Good thread. I've enjoyed reading it. And before I ask my question, let me just say that you're "da man" when it comes to video cards. You were a huge help to me, I know that. Thanks for that.
You mentioned you use a 4 point stop in the ES (or thereabouts I assume). You also mentioned that you prefer "swing trading" (I think). So let me ask a multipart question: First, when you say "swing trading", I'm assuming you mean multiday trades. But as I understand it, some people think of swing trades as a day trade where they might hold most of, if not all of the day. Which of those would you say would characterize your more typical "swing trade".
And then next, if you're making a multiday type of swing trade, how do you manage to begin with a 4 point stop? My personal experience is that if I'm trying to get on board a somewhat bigger type of move, then I have to take a somewhat bigger type of risk in terms of my stop. Granted, if my timing is excellent, I may have very little drawdown. But then there are those times where the basic idea for the trade is right, but I have some bigger type draw down in the beginning. I'm just thinking that in my case 4 points would have taken me out of alot of good swing trades of the multiday type of variety.
How do you manage to trade with a 4 point stop?
Thanks for your comments.
OldTrader
can i post one so you will answer? lol i really don't even know anything about futures so i don't even know what big size is for that market. is 500k take home good enough for an answer?
even though i have no clue and i have no real urge to even know i am just going to guess somewhere around 5 mil for dollar value of the position.
and also great thread...nothing i can really use since we are in two different worlds but it certainly gives me goals. pretty much nothing my first year of trading, about 20k my second, about 100k my 3rd, and now 500 this year. hopefully i'll be able to do better next year....knocking on wood...
I don't blame gnome for not wanting to post personal info, but a ballpark answer to this fellas question would have been interesting. Trading in different sizes presents different challenges. A big fish can run into liquidity issues that a little guy never experiences. I think krt was treated a little rough by tradernik. Click the link below to see how the gnome character responded to the tradernik characters attack on krt. We expect everyone here to treat each other with a certain level of respect, don't be a Schleprock. Now back to gnome's great thread.
http://youtube.com/watch?v=zvICN8DNMpY
Rennick De Palma out
wow, so you're happy to mention you made $100m in profits and was rated #1 by some service and would be in the bowling hall of fame and have averaged 40% annualized, but when someone asks about your biggest loss or worst year, you say that's too personal? but mentioning the other things isn't too personal?
sounds like this thread is more about stroking your ego than "trading concepts". what does your elite bowling skill have to do with trading concepts?
why are you willing to answer only the questions which boost your ego?
sounds like this thread is more about stroking your ego than "trading concepts". what does your elite bowling skill have to do with trading concepts?
why are you willing to answer only the questions which boost your ego?