Thanks, Petty, that is really savvy. Only trade one system per client account. Being my own client, that's what I do, too. But like the autodidact has a fool for a pupil, I have a fool for a client. I don't know about the "do I use it?" part, though. IMO if you help one ET trader become profitable with an instrument you trade, that reduces the amount of profit available for you to make for your clients and yourself. BTW, what do you consider to be a good ROI?
ES Journal Archive (2009 - 2010)
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I guess what I am saying is that I will be sharing stuff that works but I will stop short of sharing the details of my daily signals.
Absolutely, it is all about study and hard work and perseverance. But if you study the wrong stuff and work hard at dead ends you end up there as well. Trading is more about following the right path. It is a maze...you can think you are on the right path, sometimes for years and then realize you are lost.
The comment about ingenuity is specific to trading. Where people sell systems and signals to the masses. I don't understand why they do this. Because if that person was smart enough to figure some things out, why not trade it and make constant money for 30 years? Why sell it and move to the next idea?
In "real life" ingenuity needs an end user or buyer most of the time and I fully understand the reasoning behind selling and marketing an item. But trading is unique in that you just need capital and no consumer necessary. And if this statement is true, then why sell it?
I am not directing this at sites that build a following and offer a service to a niche following. But many things are sold and marketed to the masses in many different formats. It was directed at that.
Mr. Plunger, please edify an old fool. What's OIH and why should we care?
I agree wholeheartedly. With more than a little systems writing background behind me, I know for a fact that marketing any type of "system" is 100% failure for sure.
Trading is all about creating a technical edge, then managing oneself to exploit that and stay out of its way with other human impulse weaknesses. Sounds pretty simple... doesn't play out quite like that in real practice
OIH is an oil service company etf. Obviously, there's a lot of trouble with oil companies lately, however, this etf has been straight down all day with no pattern and is getting close to the July 09 lows! Oil companies are very important to the s&p as a whole, so this could be something meaningful. Of course there's always that bugbear apple which seems to obfuscate all my bearish hypotheses
This kind of depends on how you are trading. Obviously, if you are going for 5 to 10 points, you could just go long market and not worry about it. However, if you are scalping for example going for 1, 2, 3, or 4 points, being able to recognize one of your setups, have the order waiting as a limit order, and being able to take the loss for example not move the stop below what would invalidate your theory, and finally letting the order reach your full limit is very important.
Or else if you are not able to take stops and hold for the valid targets, you end up taking small profits and big losses. On a day like today, you should be trying for 2 - 3 point targets since the market has shown for its ATR of a swing, how much it is willing to move if you guess right with high probability on the correct direction.
I keep an excel file of my trades which illustrates quite clearly the mistakes that I make multiple times, so that hopefully in future trades, I stop making them.
Or else if you are not able to take stops and hold for the valid targets, you end up taking small profits and big losses. On a day like today, you should be trying for 2 - 3 point targets since the market has shown for its ATR of a swing, how much it is willing to move if you guess right with high probability on the correct direction.
I keep an excel file of my trades which illustrates quite clearly the mistakes that I make multiple times, so that hopefully in future trades, I stop making them.
Quote from petty1978:
I don't feel publicly talking about exact ROI in here is appropriate.
ps-It seems you are not set up to allow people to private message you or email you.
But I believe, specific to the ES, if you consistently profited 10 points a week you would be sitting pretty in 10 years. This would allow for the market to have different periods of volatility. You could adjust your money scheme to consistently pull out a specific ROI based on that volatility.
Please accept my apologies. I did not mean to pry. Some here might have construed an answer as marketing, the suspicious bastards. As to my disabling my PM, I fancy myself to be a trading educator of sorts. Sort of like Socrates was an educator. When he wasn't "corrupting the morals of the youth." So I like to keep all my discussions public for the benefit of all of ET. I will answer my own question. Consider NQ. IB's margin is $1750 per contract. So uncompounded it think that something on the order of 500% is a good ROI.
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