Can this market get any more pathetic

[limitdown]

Quote from Mecro:

Seriously, it feels like the only ones trading are the specialists and the traders. Once in a while you see real buyers and sellers, but either the specialist keeps the spread about 50 cents or the traders hack the hell out of the trade.

I think I'm gonna take august off and just bartend or wait tables cause this is churning season to the fullest.

in all seriousness, this is what the markets were like from July/August last year, clear up until the hostilities in Iraq started.

Once they started, the markets were even more dead.

March last week saw some life return, and hence this delayed rally that we've been having.

So, in short, things were already worst that presently

 

[gms]

Quote from maggandre:



I have a friend who focuses on making two trades a quarter that will yield 10 - 15% each. He defines his risk, and stops out if he is wrong and looks for the next play. He only takes entries that to him are "perfect", and he is willing to hold those stocks for at least three months (if not stopped) if needed. Sometimes he hits his target in a few days, sometimes it takes a few months.

I have "piggy-backed" a few of his trades, and usually bail out because of boredom. But guess what, his returns over the past 11 quarters are unreal, and he does not go through the daily trials and tribulations that I do...

If only I could develop the discipline.

I've got the discipline, so now I'm curious. What does he consider 'risk' and what do you consider 'unreal'? And one more question, if he's out when hitting a target in a few days, is that the end of his trading until the next quarter?

 

[maggandre]

Quote from gms:

I've got the discipline, so now I'm curious. What does he consider 'risk' and what do you consider 'unreal'? And one more question, if he's out when hitting a target in a few days, is that the end of his trading until the next quarter?

His risk is almost always based on a technical level - if price moves against him and breaks a key trendline, or moves above a MA or a Fib level. He does not have a set "10%" stop.

Most of his risk is 1:1, but I have seen him take compelling setups with a worse risk/reward.

As far as what I consider unreal, he has averaged over 100% for the past two years. Some people will think that is great, and I am sure some people would laugh at it...

He does not quit if he hits his target in a quarter, but only takes setups that are an exact match. The one thing he tells me is that it has taken a lot of time to fight the urge to overtrade, but as he gets good performance under his belt it gets easier. I said he tries to average a few a quarter - in reality he may have a few in one month, one the next, none the next, etc.

EDIT: I just got an email back - over the last 11 quarters, he has made 31 trades. That is just under 3 trades per quarter.

Now I am getting worked up and am going to focus on becoming more disciplined!

 

[ShoeshineBoy]

I also have the discipline but am curious about a few things:

How does he do in sideways and downtrending markets? Is he as good at going short as long? Does he use fundamentals at all? Does he use price patterns and/or S/R?

 

[ShoeshineBoy]

Oops - sorry. I just noticed that you said he's all technical not fundamental, but I'm still curious about the other questions.

 

[maggandre]

Quote from ShoeshineBoy:

I also have the discipline but am curious about a few things:

How does he do in sideways and downtrending markets? Is he as good at going short as long? Does he use fundamentals at all? Does he use price patterns and/or S/R?

I sent him a link to this thread and told him to sign up for ET. Hopefully he will post in the near future.

Short to long mix is 75/25 - more short than long. On down and side markets - there are always stocks going up or down regardless, you just have to find them.

I will have to let him address the rest.

 

[OVERtheLINE]

take what the market offers you

 

[dbphoenix]

Quote from OVERtheLINE:

take what the market offers you

Unless there's a razor blade in the apple.

 

[EMini-Player]

Quote from Mecro:



How is Nasdaq better? The market makers are even worse and most of Nasdaq is dead. We have Nasdaq guys right next to us and they are doing nothing most of the time, even before the summer.

I don't seem to be having any issues with the 'market'. Maybe you should stop blaming the 'market' and adjust your trading to work with the current market conditions.

-FastTrader :eek:

 

[Camaguey]

Bored? Try playing w/ something *other* than your main trade area. Don't screw up your big trades because of boredom. I usually toy w/ small lot option plays - takes a bit more creativity, usually don't make all that much, but they're almost always there. Just don't let them run too far against you.

Otherwise, yeah, go outside and enjoy the sun. Try backpacking in Southern Jersey (wherever that is).