Just so it is clear I was teasing you 
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Fed Announces Rates!! Massive market Surge!! I Am Right
- Thread starter stock_trad3r
- Start date
Quote from stock_trad3r:
I know how markets work. I also know how stocks work.
If you've been trading for years and know how stocks work why wouldn't you short when opportunity presents itself? You're not a trader, rather an "investor". Nothing wrong with that but you're limiting your gains (by not shorting) and incurring (paper) losses during declines.
Earlier you said "Um I make $500/day daytrading". Then you say "If I sold all my loser stocks after 2.5 weeks I would never make money. I make money by holding stocks and then when they tank (as some do) for no good reason I buy more while they are cheaper."
So in one post you imply you're a daytrader and then in another post you imply you buy & hold.
Quote from DHOHHI:
If you've been trading for years and know how stocks work why wouldn't you short when opportunity presents itself? You're not a trader, rather an "investor". Nothing wrong with that but you're limiting your gains (by not shorting) and incurring (paper) losses during declines.
Earlier you said "Um I make $500/day daytrading". Then you say "If I sold all my loser stocks after 2.5 weeks I would never make money. I make money by holding stocks and then when they tank (as some do) for no good reason I buy more while they are cheaper."
So in one post you imply you're a daytrader and then in another post you imply you buy & hold.
Exactly. The only thing that is consistent with his posts is that he is inconsistent with his theory.
Quote from stock_trad3r:
Before this thread my account was up 40% YTD. Now it is only up 32% or something. I have been trading for years and I know how markets work. I also know how stocks work.
My picks FOLLOW the nasdaq. Nasdaq went down 150pts after my picks. Now nasdaq hit a botom and is going to Rebound BIG. I redicted yesterday here there would be a BIG reboud off the Fed's comments. Guess what happens? All my shit rebound, too. TIE up 7% today. Chap up 6%. Hans up 2%. Goog down and AAPL flat. IM not selling jsut cause they have a few bad days.
Look at yahoo. That stock is a turd. I would never buy it.
I will make money off these picks. Even if TIE and AAPL fails to break even, CHAP, HANS, GOOG will easily cover it. There are 5 picks here, not one.
There are too may bears on this forum who may have got burned in 2000. Now they are all daytraders who trade for 1/9897 of a point or something like that.
I'm just curious--at what point would you sell a stock, and at what point would you buy it? You DO have a philosophy, do you? Or is it simply buy and never sell, because the market always comes back?
If it is the second one, I can guarantee that you will eventually lose a great deal of money. That does not make me a bear, just someone who hates riding stocks down (or hates watching stocks shorted keep going up). I did that when I first started out, and learned that I hated losing money more than I liked being right.
Tell us about your strategy-and be as specific as possible.
Quote from smilingsynic:
I'm just curious--at what point would you sell a stock, and at what point would you buy it? You DO have a philosophy, do you? Or is it simply buy and never sell, because the market always comes back?
If it is the second one, I can guarantee that you will eventually lose a great deal of money. That does not make me a bear, just someone who hates riding stocks down (or hates watching stocks shorted keep going up). I did that when I first started out, and learned that I hated losing money more than I liked being right.
Tell us about your strategy-and be as specific as possible.
When I sellected these five stocks on June 15th the nasdaq was at 2100 and the fed was about to announce rates, after which the market surged higher that day. I figured the market would rebound and I took a risk and recommend the five stocks on the basis that:
a. the market was almost or at a bottom before the fed rate hike and that my stocks would surge afterward when the markets rebounded.
b. the stocks shown consistant performance for years. All were up well over 200% since 2005.
c. Companies were growing rapidly and profitable.
Using those three sets of information, I made my choice.
I sell before earnings IF the stock rallied heavily after the previous earnings. If Hans for example surges 100% after last earnings, I would sell most of my stake before next earnings becasue there is too much pressure for the stock to outperform.
I also sell if the stock plunges on bad news such as a change of business model or missed earnings guidance.
I also sell if the stock goes up 'too quickly'. Sometimes a stock will surge 6-15% for 2-4 consecutive days towards the end of its runup (often indicated by consecutive gapping white candles). The stock often collapses thereafter in what is called a 'moment of reversal'. But-it CAN rebound later although this can take many months or years depending on the magnitude of the selloff.
Quote from stock_trad3r:
When I sellected these five stocks on June 15th the nasdaq was at 2100 and the fed was about to announce rates, after which the market surged higher that day. I figured the market would rebound and I took a risk and recommend the five stocks on the basis that:
a. the market was almost or at a bottom before the fed rate hike and that my stocks would surge afterward when the markets rebounded.
b. the stocks shown consistant performance for years. All were up well over 200% since 2005.
c. Companies were growing rapidly and profitable.
Using those three sets of information, I made my choice.
I sell before earnings IF the stock rallied heavily after the previous earnings. If Hans for example surges 100% after last earnings, I would sell most of my stake before next earnings becasue there is too much pressure for the stock to outperform.
I also sell if the stock plunges on bad news such as a change of business model or missed earnings guidance.
I also sell if the stock goes up 'too quickly'. Sometimes a stock will surge 6-15% for 2-4 consecutive days towards the end of its runup (often indicated by consecutive gapping white candles). The stock often collapses thereafter in what is called a 'moment of reversal'. But-it CAN rebound later although this can take many months or years depending on the magnitude of the selloff.
Yep, limit your gains and ride out your losses. Great concept. You should write a book.
Your username is 'holygrail'. Care to explain what it is?
My gift to you...Quote from stock_trad3r:
Bunch of unbelievable shit
Trading as a Business:
The Path To Successful Trading
By Charlie Wright
In the broad category of âtrading the markets,â there are basically three types of trading: discretionary, technical, and strategy-based. When I sat down to write this book, my intent was to write only about strategy trading. But then I realized that to fully describe strategy trading, it was also necessary to discuss discretionary and technical trading. Itâs important that you understand the difference between them, which is not always clear. Iâve met many people who believe they are strategy traders when theyâre actually technical traders, and vice versa.
I have known and taught many traders, and have observed that there are four distinct stages of trader education: discretionary trader, technical trader, strategy trader, and complete strategy trader. All successful traders have gone through them. It is almost impossible to be a successful strategy trader without going through all of these stages. My goal with this book is to help you understand and move through the stages at much less cost in both time and money.
Every trader usually starts out as a discretionary trader. The amount of money lost generally determines how long it takes the individual to start using technical indicators to make trading decisions. Eventually, as even employing technical indicators fails to move the trader into profitability, the trader moves into the third stage and starts to write strategies based on quantifiable data. It is at this stage that the trader ordinarily starts to make money. Finally, the strategies and money management approaches are refined and the individual becomes successful as a strategy trader...
Read the rest here http://www.elitetrader.com/tr/index.cfm?s=17&t=73
Excellent post JHO, and here is what describes stocktrader to a Tee.
Stocktrader, there is nothing wrong with being a rookie. Just learn from it instead of trying to justify it.
What a discretionary trader loves is the excitement. He loves being âin the markets,â playing with the big guys. He craves the risk, the excitement of trading, and the gambling rush that he gets from calling his broker and putting in the order to buy. He loves being able to sell Gyro Corp. based on the news story of the health hazards of their top selling Gyrometer. He has a real obsession for buying Cotton based on the hot tip from his broker that the upcoming crop report was going to be bullish, and he covets the tip from his friend who called to say that he just bought Techno Corp. because the latest quarterly earnings were going to be a surprise on the upside.
Discretionary traders retain the flexibility of changing their buy and sell criteria from moment to moment, and change they way they trade from minute to minute and day by day. âWell, that last trade was a disaster, so tomorrow I will buy McDonaldâs only if it opens up from yesterdayâs close.â They donât have any discipline, nor do they think they need any. They use their intuition and their gut instinct, and feel justified in doing so. They think, âMaking money is easy, you just have to be smarter and quicker than the next guy.â
I personally donât know anyone who has made money by discretionary trading. They may have been lucky and won on a few trades, but overall, over time, discretionary traders always lose money.
It is after enough money has been lost that the discretionary trader in some way stumbles across technical indicators. It may be from the chart book he just looked at where there was a Stochastic Indicator underneath the chart. Or he may have gone to the latest Make a Million Dollars Trading the Stock Market seminar and found out that using the Relative Strength Indicator is the sure way to stock market profits. He thinks, âSo this is how they do it!â These indicators look like magic. They add some rationality to an otherwise irrational trading style. He thinks, âThis must be how the big money players make the big moneyâthey use technical indicators!â
Stocktrader, there is nothing wrong with being a rookie. Just learn from it instead of trying to justify it.