can someone give me the holy grail
- Thread starter vk60546
- Start date
Good, honest answer! You have the right attitude, you might be able to figure this out after all. I can only give you one clue. I suppose it won't hurt. "KURTOSIS" If somebody gave me this clue in 1993 it would have saved me 5 years of aggravations! So here is your Christmas present! Merry Christmas and happy trading!
MAESTRO
OK, OK, here is the Holy Grail
http://theimpatienttrader.blogspot.com/2008/01/holy-grail-setup.html
http://www.hardrightedge.com/wizard/tl2.htm
http://theimpatienttrader.blogspot.com/2008/01/holy-grail-setup.html
http://www.hardrightedge.com/wizard/tl2.htm
I trade prop at qua d capital in NYC and the top guy at the firm is up around $15 million. He gets a lot of placements/offerings, but most was made in options. His profit-factor is better than 4:1.
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:eek:
The first step in being successful in any endeavor is to know who your opponent is and how they operate. In trading it is not John Doe who has purchase some stock with his fingers crossed hoping that the price will increase. Your opposition are the professional marketmakers who can move the prices.
One must realize that professionals have two accounts. Their trading account and their investment account. They are constantly buying and selling in their trading account but they buy and hold in their investment account until prices are reversed at the top on large volume blow-outs at which time they empty their investment account and go short in their trading account. They use this short position as a hedge to trade against as the price is whipsawed to a new low at which time they will replenish their investment account. They are doing their 'market making' in their trading account, without regard to wash sales since this rule does not apply to them, but investing for the bigger move in their investment account. The principal determinant in their investment account is the IRS Code. Check stock prices at 13-15 months from their lows for long term capital gains. The professionals knows that to unload inventory in their investment account the stock prices have to increase which causes the public to rush in with larger buy orders and to accumulate an inventory they just need the stock prices to go down causing larger sell orders. Manipulation at the right time with the same constant results from the public is the key to profitability. The public always comes running with saliva dripping off their chins when the bell is rung. It never fails.
On intraday trading you are trading against the marketmakers who cannot lose because of hedging. Your chances are no better than flipping a coin. Heads they win and tails you lose.
The holy grail as an investor is to buy quality stocks at their low and hold for long term term capital gains. Watch the volume and price. A large increase in volume will signal a reversal in price after the time for a long term capital gain. Prices will go down a lot faster than going up because there is no tax benefit in being short and people will dump a stock losing value quicker than a stock still going up with a potential for greater appreciation. Watch for a large volume increase at the bottom as a signal for a price reversal. Volume, price and time are the keys to making a long term capital gain profit as a trader.
I think we are all looking for the holy grail!!