Eric Bolling: Cut losers quick is the key to making money.

Quote from ronblack:

Not that simple. It's a formally fallacious statement. It assumes you know which trade is going to be a loser. But trades rarely are winners from start.

What matters is the relation of average win to average loss, success rate and profit factor:

http://www.tradingpatterns.com/profitability.pdf

Ron
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true. Smaller stoplosses only means that you will have a lot of smaller losses in many trades that may have been winners.
 
Just goes to show you that often times the simpler the approach the better. I dont understand all the math, stats, and physics crap that is constantly being touted by a lot of traders on this board. Good money management and buying dips in bulls markets and selling rips in bears will make you a living. Thats what Eb has been doing his whole life and hes made a shitload of money.
 
Quote from JamesVU2000:

Good money management and buying dips in bulls markets and selling rips in bears will make you a living. Thats what Eb ( Eric Bolling ) has been doing his whole life and hes made a shitload of money.
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One must remember that Eric is by training, an OIL MARKET trader, which means that he is a SPREAD trader.

My guess is that 90% of his trading involves spreads, with only the occasional "outright" directional position trade.
 
Quote from syswizard:

First off, I was going short most of the time....I'd wait for a peak, then a fall-off, and let it rip. Natch, I was selling right as the "buy-on-the-dippers" were going long....and I was wrong, really wrong. I'd sometimes get stopped-out in 2 seconds.

I never had any large losers...always used stops. At the end of 6 weeks, I saw a win rate of just 20%.....and I was down $1500 per contract. Near the end of that "experiment", I was taking small profits....fearing to lose them back.

So bottomline: many small losers, some small winners, few big winners, and no big losers is a losing strategy. The market will just take your money all in good time, instead of all-at-once a la Vic Niederhoffer.
Good posts all - obviously you are experienced traders.
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This is a good post because it reveals one of the biggest mistakes that even "seasoned" traders make.

THE TREND IS YOUR FRIEND.

First, identify the trend and trade accordingly . . . with the trend.

It will make life a helluva lot easier!
:D
 
Quote from ang_99:

Simple, right?...
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There are so many keys or variables to consistently making money that one is more important than the others depending upon the trading day, time of day, tools a trader has access to and events in a trader's personal life.

The key is trying to determine what your own puzzle looks like and then put it all together in a workable trading plan.

Simple for a few while difficult for most.

Mark
 
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