Cutting losses - not the best idea

Quote from Mecro:




You know if I cared enough, I would search for the thread where your whole record was exposed and ALL your positions were counted and your return was calculated to be 3%. It's there, I remember it clearly and I know you do also.

I'll give you the benefit of the doubt and assume that in the last several months you did better since you obviously got lucky on this "rally". Apparently that blew up your head beyond belief and now you are not just huge you are gigantic.

But all that aside, you do not even live from from your "investing" practices. You are trying to teach and brag to people who makes a daily living (some a very good one) from trading stocks everyday. If you had any manners or common sense at all, you would be humble, but instead you think you're mr. super trader/investor. Except that you cannot make a living out of your trading strategy.

I hate to say this, but I hope you get wiped out when the bubble bursts. You need a serious lesson about the market.
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I didn't say I can't make a living on my investing practices. It is a very healthy source of income for me. What I did say is that I don't need to make a living trading. I think my success is a culmination of my skill and intelligence.

I've never wished any ill will or misfortune on anyone in this forum. What exactly is it that I need to learn? I'm listening.
 
The basic buy & hold concept is all it boils down to is this concept. If you are long and you keep buying in a market that has an upward bias you will make money.
However the tradeoff to this strategy is that during extended drawdowns you will have no liquidity.

Adding the dollar cost averaging concept to the buy & hold method should work in the long term but not in the short term.
 
Quote from mrmarket:



I didn't say I can't make a living on my investing practices. It is a very healthy source of income for me. What I did say is that I don't need to make a living trading. I think my success is a culmination of my skill and intelligence.

I've never wished any ill will or misfortune on anyone in this forum. What exactly is it that I need to learn? I'm listening.
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What success? You cannot live off your idiotic strategy. Your money is tied up and your return is pathetic. Now you claim completely otherwise now but I clearly remember that you admitted that you have a job and that your trading/investing is a side thing and you do not rely on it for income. Well it's not like you can anyway.

Besides that, your ingenious strategy used to be published everyday in Investor's Business Daily. Now I like that paper, but A) It's a strategy of a bull market bubble and B) If it's advertised to the masses, it does not work. Eventually, after you take some serious hits, you will figure that out, Mr. Wharton MBA.

Speaking of your amazing intellect and skill which apparently is derived from your Wharton MBA. I know people in early 20s who dropped out of college because they did not agree with the college BS and have been making a few hundered grand a year trading. So whats your point? Why are you so smart? Because you can report your record by completely omitting your losing positions?

Finally, this forum is for traders. You're barely an investor. What exactly are you trying to prove here? I know investing, but not the crap you preach. When I think investing, I'm talking about buying SIRI at 50-70 cents and getting out $2.00-$2.50. Calculate that return.
 
Quote from Mecro:



What success? You cannot live off your idiotic strategy. Your money is tied up and your return is pathetic. Now you claim completely otherwise now but I clearly remember that you admitted that you have a job and that your trading/investing is a side thing and you do not rely on it for income. Well it's not like you can anyway.
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Yes I can, if I wanted to. I like my job, that's why I do it.
 
Quote from Mecro:



What success? You cannot live off your idiotic strategy. Your money is tied up and your return is pathetic. Now you claim completely otherwise now but I clearly remember that you admitted that you have a job and that your trading/investing is a side thing and you do not rely on it for income. Well it's not like you can anyway.

Besides that, your ingenious strategy used to be published everyday in Investor's Business Daily. Now I like that paper, but A) It's a strategy of a bull market bubble and B) If it's advertised to the masses, it does not work. Eventually, after you take some serious hits, you will figure that out, Mr. Wharton MBA.

Speaking of your amazing intellect and skill which apparently is derived from your Wharton MBA. I know people in early 20s who dropped out of college because they did not agree with the college BS and have been making a few hundered grand a year trading. So whats your point? Why are you so smart? Because you can report your record by completely omitting your losing positions?

Finally, this forum is for traders. You're barely an investor. What exactly are you trying to prove here? I know investing, but not the crap you preach. When I think investing, I'm talking about buying SIRI at 50-70 cents and getting out $2.00-$2.50. Calculate that return.
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You really seem to have something against educated people. Why is that? I have nothing against uneducated people.
 
Quote from Mecro:



Speaking of your amazing intellect and skill which apparently is derived from your Wharton MBA. I know people in early 20s who dropped out of college because they did not agree with the college BS and have been making a few hundered grand a year trading. So whats your point? Why are you so smart? Because you can report your record by completely omitting your losing positions?

Finally, this forum is for traders. You're barely an investor. What exactly are you trying to prove here? I know investing, but not the crap you preach. When I think investing, I'm talking about buying SIRI at 50-70 cents and getting out $2.00-$2.50. Calculate that return.
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I have never omitted my losing postions. I have 41 consecutive closed profitable trades of 15% or better. Of my last 50 trades, 44 were winners and 6 were losers. I have now 10 open positions, of which 4 are winners and 6 are losers.

Please tell me where is the omission?

Buying SIRI at $0.50 and selling at $2.50 is a return of 400%. That's a very good return.

What other questions do you have of my trading strategy?
 
Quote from quantpatterns:

Have you ever heard of William O'Neil of IBD? I think you have similar growth oriented investing styles, except he pays attention to technicals as well.

He has like 5-8% stop-loss rule. It's just good money management. Let's say you are in a losing position and you keep holding it, then you are missing out other great growth opportunities. You cut your losses fast. Then redeploy those capital for the next growth story.
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This is OK for funds and maybe indexes, but it doesn't work for trading stocks. I say this based on 1000's of hours of computerized system testing. Others who have done rigorous testing have come to the same conclusion.

The conventional wisdom regarding stops is dangerous.

g
 
Quote from ges:



This is OK for funds and maybe indexes, but it doesn't work for trading stocks. I say this based on 1000's of hours of computerized system testing. Others who have done rigorous testing have come to the same conclusion.

The conventional wisdom regarding stops is dangerous.

g
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I completely agree....blindly stopping yourself out is as stupid as blindly buying a stock. There is no difference.
 
mrmarket

where you went to school and having a mba means nothing to the market. also when the market goes up everyday any stock will gain marketcap. your theory works now in upward market but in a downward market you might not be on here talking. i wish everybody luck but every trader needs to know when to cut a lose. i dont think its a crime to re enter or is it.
 
Mr Market

The most critical aspect of any trading or investment strategy is money management and risk control. This is trading 101. If you don't control your risk it is only a matter of time before they carry you away. I don' t care if you win 99 times in a row, it only takes one rogue loser to clean you out.

Every trader needs a way of objectively saying "ok I'm wrong here". Unless of course you're never wrong. If that is the case...baby....you should own the world by now. But for the rest of us mortals, we need some risk control. And that risk control has to involve price as the key variable. Not something vague like "ok they changed their business model, so now I'm liquidating."

We all make and lose money on price change. Not business models. It is what the market perceives that counts. The rest is just opinion.

I find it incredibly ironic that your handle is "Mr Market" because apparently you trade as though you ARE the market.

As I said. It's just a matter of time before they carry you away if you don't start defining your risk.

Consider changing your handle to "round tripper" ride it up and all the way back down baby. lol:p
 
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