7 tips to be a good trader

[mhashe]

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.

Another paper-trader who thinks multiplying his virtual account makes him a great trader. Btw, Livermore died broke and shot himself inside of a restroom to boot. And if you must know, he made most of his money by running pooled stocks and splitting the commissions with his broker. He was better at selling himself than he was a successful trader.


This is a great thread, unfortunately ( for me at least ), most of the suggestions seem to deal with options! ( not my forte ). Also cnms2 made a valid point that some good traders will trade a high account size:contracts traded ratio. eg. trading 1 ES contract for each 100K in the day-trading account ( this high a ratio seems to effectively eliminate much of the emotion quotient). Another effective suggestion would be to consistently sweep away profits from ones trading account.

 

[fader]

Quote from fortuna:

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

fortuna - by the way, with the massive run up in the european equity indices last year, what are your thoughts on spreading the European index volatility to the long side against the U.S. index volatility; i realize however the event risk is greater for the U.S., i.e. will need to be managed accordingly.

 

[trend_guy]

Quote from mhashe:

Another effective suggestion would be to consistently sweep away profits from ones trading account.

Wow, great advice! I guess you have a PhD in trading. LOL

Read Darvas' book, maybe you can gain some insight into your great point.

 

[trend_guy]

Quote from iceman1:

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

Why? Simple. Because I care about the newbies getting into the business. Most of them find ET soon enough. I made many mistakes at the beginning; but I started making big profits once when I seeked out the guidance of a PROVEN trader.

If looking after the newbie population is wrong, then I'm wrong. There are too many people teaching that don't make money. If you want to teach; that's great; but prove your track record first.

If you are a profitable trader and don't like my posts then simply ignore them. But just be careful when you assuming that they don't contain valuable information.

 

[steveosborne]

I think <i>fortuna</i> also cares about newbies when he warns them that the high volatility that attracts them is there for a reason and that they have to figure out why.

 

[fortuna]

Quote from fader:

fortuna - by the way, with the massive run up in the european equity indices last year, what are your thoughts on spreading the European index volatility to the long side against the U.S. index volatility; i realize however the event risk is greater for the U.S., i.e. will need to be managed accordingly.

Right now I am long vol in US (spx, sox, ndx , goog, ) and short vol in euro stoxx and smi.

But last year I used to do what u suggest (ie long vol europe and short vix)

Reasons for my new positions are linked to European specific flows. In europe, unlike US, there are big structured products that impact implied move on a big scale. Those guys used to be net shorter vol last year, but in the last 3 months they have bid up 1 to 5 year IV in euro stoxx. So I go against them, I just buy dax vol.

In US vol is much too low, price no possible events (bad like Iran or oil, good like big GDP increase or end of rates increases)

Hope it helps , and this is my position, could be wrong