Could you please explain this to me?
90% traders don't make it???
- Thread starter kalashnicac
- Start date
Could you please explain this to me?
This thread is interesting.
Most people define themselves as traders based on god knows what as long as they can justify their existence in some way. I believe the figure is high only because there are more people that will give up then stay the course; until they can swing their dollars effectively for the duration. But, i also agree with the point that todays trader has to continuously create new ways and mechanisms to extract profit while using old ways when possible--what worked today may not work well tomorrow and if you think you are a hot shot your days trading are numbered. Math and science continuously evolve so too does the trader or risk being blown out. Creative minds will always teach stagnant ones but only when the creation has passed into another form. This is why it is important, i think, for a money manager/trader to stay creative and imaginative. I may be completely off but this is how i see our universe; without knowing the exact answers. It is very interesting to see what people think, not so much about the answer but how they justify the means to it. Well played.
Most people define themselves as traders based on god knows what as long as they can justify their existence in some way. I believe the figure is high only because there are more people that will give up then stay the course; until they can swing their dollars effectively for the duration. But, i also agree with the point that todays trader has to continuously create new ways and mechanisms to extract profit while using old ways when possible--what worked today may not work well tomorrow and if you think you are a hot shot your days trading are numbered. Math and science continuously evolve so too does the trader or risk being blown out. Creative minds will always teach stagnant ones but only when the creation has passed into another form. This is why it is important, i think, for a money manager/trader to stay creative and imaginative. I may be completely off but this is how i see our universe; without knowing the exact answers. It is very interesting to see what people think, not so much about the answer but how they justify the means to it. Well played.
Quote from jnhighland:
Could you please explain this to me?
I stopped trying to speculate on where a stock and the markets were going to go and started re-acting to what it actually did. I started evaluating my risk/reward ratio better, protecting my account principal. I protected my account principal by limiting the amount I was risking and getting out when I was wrong. I also stopped trying to get the maximum movement each time I placed a trade.
I know that some are very good at speculating. I am not that good yet.
Thanks!
I'm no longer listening to my "instincts":eek: and now I'm reactive to what the markets do. I'm happy to say that for the ENORMOUS amount of stupid decisions I have made my principal remains almost the same.
What I still don't know is what to trade, the universe of stocks is so wide that it is impossible to have an eye everywhere.
Do you think that it is better to only follow a compact basket of stocks (ETFs) and know them well? or maybe the 30 stocks of the Dow Jones?
I'm no longer listening to my "instincts":eek: and now I'm reactive to what the markets do. I'm happy to say that for the ENORMOUS amount of stupid decisions I have made my principal remains almost the same.
What I still don't know is what to trade, the universe of stocks is so wide that it is impossible to have an eye everywhere.
Do you think that it is better to only follow a compact basket of stocks (ETFs) and know them well? or maybe the 30 stocks of the Dow Jones?
For stock trading, focus on the most liquid ones, not necessary the dow components, as many dow components do not move at all.
Try to filter out symbols with average range, say, on 30 minute bars, that have reasonable ranges. That way you know that you can capture some movement that worth your while.
As an ex-floor trader on a not so busy trading floor, I think I am qualified to make this comment
Try to filter out symbols with average range, say, on 30 minute bars, that have reasonable ranges. That way you know that you can capture some movement that worth your while.
As an ex-floor trader on a not so busy trading floor, I think I am qualified to make this comment
Quote from jnhighland:
Thanks!
I'm no longer listening to my "instincts":eek: and now I'm reactive to what the markets do. I'm happy to say that for the ENORMOUS amount of stupid decisions I have made my principal remains almost the same.
What I still don't know is what to trade, the universe of stocks is so wide that it is impossible to have an eye everywhere.
Do you think that it is better to only follow a compact basket of stocks (ETFs) and know them well? or maybe the 30 stocks of the Dow Jones?
Quote from Lawrence Chan:
Try to filter out symbols with average range, say, on 30 minute bars, that have reasonable ranges. That way you know that you can capture some movement that worth your while.
Sorry for asking but a further explanation will be highly appreciated!
Quote from jnhighland:
Thanks!
I'm no longer listening to my "instincts":eek: and now I'm reactive to what the markets do. I'm happy to say that for the ENORMOUS amount of stupid decisions I have made my principal remains almost the same.
What I still don't know is what to trade, the universe of stocks is so wide that it is impossible to have an eye everywhere.
Do you think that it is better to only follow a compact basket of stocks (ETFs) and know them well? or maybe the 30 stocks of the Dow Jones?
well... I can only say what works for me, currently.
I use a stock screener to find hot sectors based on beating earnings estimates and select a few in the sector that have large trading volume and good volatility or movement, drill down from there.
I trade a few stocks that I look at every day that I have become very familiar with there trading patterns. This is again composed of Tech/Internet stocks.
Recently it has been AAPL, EBAY, AMZN, MRVL, NOK, JNPR, QCOM.
As you can see mainly Nasdaq.
We are getting way off topic on this thread so I apologize to all .
What I like about the 30 stocks of the Dow is that most of them have high liquidity (not all), even though they are the biggest companies they are diversified and they are uncorrelated, they are in different sectors of the economy.
By the way, take a look at SBC, it has been sideways for a long time, but the volume is increasing and is close to something interesting.
By the way, take a look at SBC, it has been sideways for a long time, but the volume is increasing and is close to something interesting.
infinitis,
as a scalper the most important element in trading is a defined plan and quick executions.... my sucess is based on minimizing risk and maximizing reward but you have to act fast. this may not be your sytle but if your n\in for pennies like i am you cant hesitate at all. with fidelity $8 i try to max my size as mush as i can anywhere between 800 to 1500 shares after 1000 its only .005 cents so it not that bad if i buy 1000 of the qqqq i only have to make 1.6cents to Break even so the larger size brings a faster return.
its going to take a few weeks to get use to the platform and all the toys
as a scalper the most important element in trading is a defined plan and quick executions.... my sucess is based on minimizing risk and maximizing reward but you have to act fast. this may not be your sytle but if your n\in for pennies like i am you cant hesitate at all. with fidelity $8 i try to max my size as mush as i can anywhere between 800 to 1500 shares after 1000 its only .005 cents so it not that bad if i buy 1000 of the qqqq i only have to make 1.6cents to Break even so the larger size brings a faster return.
its going to take a few weeks to get use to the platform and all the toys
Forgot to mention, a guy mentioned today that he makes his watchlist based on stocks with high ATR (which I understand as a volatility index) over 2.5 in the last 3 months. Does someone know how and where I can filter this?
Sorry for asking so many questions, but so far the only thing I have for certain in the market is that for every thing I learn, 2 questions come to my mind.
Sorry for asking so many questions, but so far the only thing I have for certain in the market is that for every thing I learn, 2 questions come to my mind.