A post every trader should read, especially new traders.

Chuck Krug said:
From Mark Minervini:
Having a 34 career as a stock trader, I’ve experienced some incredible times in the stock market, good and bad. Today I’m going to talk about a few of the more tumultuous times.
For those of you that think it’s different this time around or that the market simply won’t go down 5 or 10%, let me offer the following bit of perspective

http://www.minervini.com/blog/index...ery_trader_should_read_especially_new_traders
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Sensible writing from an old hand, thanks Chuck.

We all need a plan for when the uptrend ends. Mine is to get out of all stock index and equity longs if the Dow either -
a) closes below the 50EMA
or
b) the 20EMA crosses below the 50EMA

These two complementary rules would have got a trader into cash before Black Monday 1987, before the Wall Street Crash of 1929, and before 16 of the 20 worst one day price falls the Dow has recorded since 1900.

Meantime I'm enjoying the ride.
 
Hello,

The article states "If you don’t have a plan for dealing with the opposite side of your long trade, then all I can say is good luck, because you’re going to need it."

The plan should be for anyone who wants to retire one day safely is to continue buying asset allocated index funds every monthly until the day they retire. I choose to keep it very simple and invest in Vanguard Target Funds month. I am not risking my retirement fund trading it. Trading is for getting wealthy only!!
 
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Chuck Krug said:
Talk to 5 average investors, and 4 of them will quote Warren Buffet, tell you that they invest like a good housefather and are in it for the long run.
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And that’s horrible how? You want them to piss away transaction costs getting in and out of the market instead?

My takes are very cynical:
- That post is a truism - markets do go down
- The guy is a talking head selling a service

PS. What on earth is a “champion trader”? If he is really that good, he’d be managing a few yards, not running a cheap looking website.
 
sle said:
And that’s horrible how? You want them to piss away transaction costs getting in and out of the market instead?

My takes are very cynical:
- That post is a truism - markets do go down
- The guy is a talking head selling a service

PS. What on earth is a “champion trader”? If he is really that good, he’d be managing a few yards, not running a cheap looking website.
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Hello sle,

You are correct. There is difference between trading and investing. Every traders should and better have an investments setups for long term (401K, IRA, ROTH, savings account) retirements. Can't be a trader forever!
 
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If you have an exit rule like that, I assume you have an entry rule too? Just interesting if you have back tested the median and mean performance of this method vs just holding the market.

tomorton said:
We all need a plan for when the uptrend ends. Mine is to get out of all stock index and equity longs if the Dow either -
a) closes below the 50EMA
or
b) the 20EMA crosses below the 50EMA

These two complementary rules would have got a trader into cash before Black Monday 1987, before the Wall Street Crash of 1929, and before 16 of the 20 worst one day price falls the Dow has recorded since 1900.

Meantime I'm enjoying the ride.
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sle said:
If you have an exit rule like that, I assume you have an entry rule too? Just interesting if you have back tested the median and mean performance of this method vs just holding the market.
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Holding the market might work financially in the long run if you can't short it going down, but a) how long is the long run?, and anyway b) holding would prevent me shorting it, and my aim is to be long when price is rising, and short when its falling - making money both trips.
 
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Chris Mac said:
Trolling again. Boring.
Who are you to judge relevance / irrelevance of Minervini's post ???
Are you willing to compare yourself to Minervini? Seriously ?
Wake up, 'part art part science' lawrence lugar <<<<< Minervini
Just know your place, majority of your posts are "kind of" noobish / useless / truisms

CM
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Just an observation... but aren't you trying to do to lawrence-lugar the same thing you are accusing him of doing to the other poster?(judging his post):confused:
Food for thought...:cool:
 
NeoTrader said:
Just an observation... but aren't you trying to do to lawrence-lugar the same thing you are accusing him of doing to the other poster?(judging his post):confused:
Food for thought...:cool:
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Ahah good remark
I just can't bear reading all LL's BS when there is an interesting post.
He will immediatly reply : "kind of incorrect" "kind of irrelevant", "part art part science"
BS BS BS
PS : And I don't put On Ignore trolls because I want to understand the complete thread without holes

CM
 
Chris Mac said:
Ahah good remark
I just can't bear reading all LL's BS when there is an interesting post.
He will immediatly reply : "kind of incorrect" "kind of irrelevant", "part art part science"
BS BS BS
PS : And I don't put On Ignore trolls because I want to understand the complete thread without holes

CM
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I personally have no problem if people judge what I post... Mostly because I couldn't care less about what they think of it or not... From the posts of lawrence-lugar that I've read so far, I mostly agree with them... But everyone is entitled to it's own opinion, no matter how bizarre it may seem to others...
 
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