7 tips to be a good trader

[trend_guy]

Quote from dac8555:

there always has to be an A$$hole in the scenario doesnt there? Ill bet $10k that you are unprofitable. If you were profitable you would understand that you can give idea and suggestions until your head explodes but it is up to the individual to make it happen.

If i told you what you had to do to become an NFL running back does that mean you can do it? no. same applys here slappy.

As for livermore, people read and follow his "tips" to this day. tips like "hold on to your winners" "you dont have to trade all the time....you make money just sitting tight""have your own plan" you know the 'ol standbys. the same things are repeated by various people in market wizzards 50 years later. the "turtles" gave away all of their secrets to success...i will send them to you if you like

if you think that giving people ideas, thought, suggestions and "tips" will make them rich, and that those ideas should be held as proprietary information....YOU are the sucker.

Accepting ideas from people that are unproven is very dangerous. The beauty about this country is that everyone is entitled voice their own opinion. I have mine and you have yours. My advice to you and others is if you want ideas; go to someone with a proven track record; such as... Ed Seykota, PTJ, Crabel, maybe even my buddy Curtis Faith(since you are such a big turtle fan, maybe even ask him why he was the most successful turtle and no longer trades the 55d Donchian breakout method).

PS. FWIW, I am very profitable whether you choose to believe it or not; but I can tell you that my banker believes it.

 

[Cesko]

Quote from dac8555:

there always has to be an A$$hole in the scenario doesnt there? Ill bet $10k that you are unprofitable. If you were profitable you would understand that you can give idea and suggestions until your head explodes but it is up to the individual to make it happen.

If i told you what you had to do to become an NFL running back does that mean you can do it? no. same applys here slappy.

As for livermore, people read and follow his "tips" to this day. tips like "hold on to your winners" "you dont have to trade all the time....you make money just sitting tight""have your own plan" you know the 'ol standbys. the same things are repeated by various people in market wizzards 50 years later. the "turtles" gave away all of their secrets to success...i will send them to you if you like

if you think that giving people ideas, thought, suggestions and "tips" will make them rich, and that those ideas should be held as proprietary information....YOU are the sucker.

It's absolutely true. Not only majority won't be able to take advantage of whatever you tell them (even if it's truly valid information), vast majority won't even bother to do some serious thinking about a new info.
One of the character traits of an intellectual (not pseudo-intellectual) is curiosity. 95% of humanity is not curious about anything beyond the routine of daily life.

 

[cnms2]

Although I disagree with fortuna's tip #8, this is a reference to an article in which somebody advises a "20-t0-1":

• A favorite trading story that I tell concerns a very successful trader. He promised to tell me the secret of trading success. Of course, my curiosity was piqued and I asked, “What is that?” He responded with a question: “What is the ratio of your largest position size to your normal size?” “Three-to-one”, I told him. He smiled. “Consider 20-to-1,” was his advice and his success formula.

 

[fortuna]

hello

This discussion is becoming a bit strange, as is sometimes the case in forum when we don't know each other.


well, I gave some honest conclusions of my experience.

Just to go back to the ndx call strategy, take a look at it, it is certainly a very rare opportunity to make a lot of bucks.

With volatility around 14% for low ndx delta options, (this vol used to be in the past ard 30 to 50%) , u have a very low risk for a huge possible profit. I defy u to find me something more interesting. (of course try to find, I will be very happy to get some other ideas)

Anyway good luck in trading and talk you someday

 

[murray t turtle]

Quote from fortuna:-Cnms2

- In my opinion: trading based on your feelings is a recipe for disaster. More: the odds of getting wiped out get very high when you don't observe money management -


Ok, that is a good subject. to be extremely sincere, I think that traders making money with their feelings are the best, but, they are very rare. U need self confidence to make money, and if you don't trust your feelings,it is because they make u trade emotionally.

well, i think all the educational/brokerage trading business (books, websites, advisors, brokers , trading systems, tradingmarkets, etc...) are just a way to make u fill more self confident very often with other ideas. I don't think they will ever make u a good trader.

Now , u could replace feeling by reason, high risk reward signals given by a complex trading system, at the end, whatever makes u self confident.

I certainly do not want to hurt anybody thinking. My experience shows that the best traders I know and work with, and sometimes are part of it, base at the end their bets on feelings (which is the best computer in the world), but they feel very different from many, they are warriors, live for the trading ... a long interesting discussion



About volatility, I trade with listed options, and recently with variance swaps .


Thanks

==========
Thank you & Cnms2 for the money management clarification;
because without it ,as Cnms2 noted, risk of ruin is very high.

Yes there are a certain % % of men & women who process info well by feelings and some discretionary traders process info better than mechanical traders.

Yes ,can tell you some high probability trades by feelings or approximate time for paint to dry, by feelings;
however may want to GOOG or YHOO current temperature projections/institutional info for day also.


And merci/thanks,
looks like you may have traded for about 5 + years;
would pay more attention to 5 +[measured ]years ''feelings/discretion'',
than 5 minute feelings/discretion.

And some of the best questions are asked by new or experienced traders;
so 5 minutes could be useful in that respect.

 

[fader]

Quote from fortuna:

With volatility around 14% for low ndx delta options, (this vol used to be in the past ard 30 to 50%)

hi fortuna - i appreciate your tips - with respect to your above comment concerning volatility, i have used the $VXO chart in my work (attached, using this as a quasi-proxy for $VXN, i don't have a longer term $VXN chart) - looking for example at the '91-'96 low volatility, extended period.. - do you have a specific basis for your anticipation of a significant volatility increase or spike by June this year (i.e. we are now 3 years into the low volatility cycle)? - or did you mean this comment as more of a general strategy, i.e. volatility will eventually return.. - thanks and all the best.

 

[fortuna]

high volatility of the 1997-2003 is certainly extreme, and I don't think u would return to it very soon

However out the money call IV is too low for NDX on all metrics. too low against historic volatility, true range vol, past implied volatility in quiet period

U are right we could still be in a low vol regime for another two years for oex or spx, but ndx has integrated goog , has a strong percentage of very volatile stock like aapl etc...

If u agree with my scenario of big increase in the nasdaq in the next 6 10 months , it is nearly a free lunch

I bought ndx june 1900 call back in november at 4.70 at a vol of 13.75, right now they are worth 20 with a vol of 16%. If ndx goes up , vol can't go lower and u more through the smile.

right now to initiate new positions, may be better to go for sept oe dec option for non option traders

good luck hope it helps

 

[iceman1]

Quote from trend_guy:

I think that was more than seven tips.

If you actually read Livermore you would know that tips are for suckers.

I just love when successful traders decide to open their hearts and give away all the secrets to success. Get real frenchy... not everyone here is a sucker.

Accepting ideas from people that are unproven is very dangerous. The beauty about this country is that everyone is entitled voice their own opinion. I have mine and you have yours. My advice to you and others is if you want ideas; go to someone with a proven track record; such as... Ed Seykota, PTJ, Crabel, maybe even my buddy Curtis Faith(since you are such a big turtle fan, maybe even ask him why he was the most successful turtle and no longer trades the 55d Donchian breakout method).

PS. FWIW, I am very profitable whether you choose to believe it or not; but I can tell you that my banker believes it.

no offense...

but do you have any idea why you are saying this... or do you just have nothing better to do. Even if you are correct in theory (or practice) to a certain extent- that it might be better to be mentored by a top performer - why do you sound so angry in your posts? What or whom are you angry at?!

(clue#1 look in the mirror)

My view about critics like you is this --- IF you got it figured out and its as simple and 'black and white' as you imply- why bother ragging on others. Rather be happy so many others don't have the brilliant insight you have gained. Just run with it bro.

GL in 2006. We will all look forward to your insight on the pages of ET.com throughout the year?


Ice

 

[iceman1]

Quote from fortuna:

high volatility of the 1997-2003 is certainly extreme, and I don't think u would return to it very soon

However out the money call IV is too low for NDX on all metrics. too low against historic volatility, true range vol, past implied volatility in quiet period

U are right we could still be in a low vol regime for another two years for oex or spx, but ndx has integrated goog , has a strong percentage of very volatile stock like aapl etc...

If u agree with my scenario of big increase in the nasdaq in the next 6 10 months , it is nearly a free lunch

I bought ndx june 1900 call back in november at 4.70 at a vol of 13.75, right now they are worth 20 with a vol of 16%. If ndx goes up , vol can't go lower and u more through the smile.

right now to initiate new positions, may be better to go for sept oe dec option for non option traders

good luck hope it helps

good analysis fortuna -

bonne chance

 

[fader]

Quote from fortuna:

right now to initiate new positions, may be better to go for sept oe dec option for non option traders

good luck hope it helps

ok thanks, makes sense; however, i find the june expiry attractive due to the "sell in May" phenomenon (or april/may).. - all the best.