ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Quote from smilingsynic:
Simplistic. There are many proper ways to trade, just as there are many improper ways.
Losers also stay in trades looking for homeruns because of their irrational aversion to taking losses. Not taking losses leads to losses. Ironic, but true.
Your short position will probably end up profitable, but profits need to be seen in relation to the drawdown. It is difficult to see 140-plus points of drawdown per contract as acceptable.
Simplistic? yes. Powerful? yes.
There are many ways to make money trading but just one proper way which will enable the greatest reward and that is to aim for homeruns.
Losers stay in trades that are not in the black. Very different than what I do.
My short position is nearly guaranteed to be profitable. I am short from nearly 1489 and will stop out above 1410. As yet, there has been no drawdown on my position. Correct calculation of drawdown is with relation to cash balance (realized profits). Many traders calculate drawdown based upon cash balance plus open trade equity. This is not the correct way as it will cause a trader to make too many trades(decisions) and get scared out of the pot. --Good fortune to all.
good point.
like I said now a few times, commodities are where real estate was 2 1/2 years ago, where tech stocks were in early 2000.
when all the money comes out of commodities where will it go?sure isnt going into real esate.sure isnt going to sit in the bank with 1% interest rates.
that combined with money coming out of real estate, plus foreign buyers chasing the dollar and investing here.
all this equals higher prices.
SPX 2000+ in 2009.
This next week will be a good one for ya. NLY will be good to me
Quote from Buy1Sell2:
Simplistic? yes. Powerful? yes.
There are many ways to make money trading but just one proper way which will enable the greatest reward and that is to aim for homeruns.
Losers stay in trades that are not in the black. Very different than what I do.
My short position is nearly guaranteed to be profitable. I am short from nearly 1489 and will stop out above 1410. As yet, there has been no drawdown on my position. Correct calculation of drawdown is with relation to cash balance (realized profits). Many traders calculate drawdown based upon cash balance plus open trade equity. This is not the correct way as it will cause a trader to make too many trades(decisions) and get scared out of the pot. --Good fortune to all.
ro10 anyone ?
Quote from Buy1Sell2:
Simplistic? yes. Powerful? yes.
There are many ways to make money trading but just one proper way which will enable the greatest reward and that is to aim for homeruns.
Losers stay in trades that are not in the black. Very different than what I do.
My short position is nearly guaranteed to be profitable. I am short from nearly 1489 and will stop out above 1410. As yet, there has been no drawdown on my position. Correct calculation of drawdown is with relation to cash balance (realized profits). Many traders calculate drawdown based upon cash balance plus open trade equity. This is not the correct way as it will cause a trader to make too many trades(decisions) and get scared out of the pot. --Good fortune to all.
Reward means little without consideration of risk.
You are free to define drawdown anyway you want, this being the free world, but your current drawdown according to the definition accepted by the rest of the investment community will end when/if the S&P trades below 1255.50. If your profit ends up being significantly (at least twice) more than your current drawdown (what it has gone against you since your peak profit) of 144.50, I will be impressed.
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