how to make money

I think sometimes we become a little too focused on what OUR time frame is. Sometimes, the market will run and its best to just sit tight. I had an OLD GUY mentor who used to say.."sometimes, you need to just get up and walk away from the screen". This is, obviously, when the trade is going in your favor.
 
Good point. Unfortunately most people can't take the focus away from the money.

Quote from lolo24ca:

MMMM... HOW TO MAKE MONEY? DON'T THINK ABOUT MAKING MONEY, THINK ABOUT MAKING A GOOD TRADE, AND THE $$$$ WILL FOLLOW
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Quote from lolo24ca:

MMMM... HOW TO MAKE MONEY? DON'T THINK ABOUT MAKING MONEY, THINK ABOUT MAKING A GOOD TRADE, AND THE $$$$ WILL FOLLOW
More...

very true. reminds me of Elder's story about teaching his daughter(?) to play chess. she got really good at it but once they started playing for money (it was just pennies, literally), she started losing. when money is the primary focus that means trading is secondary at best.

another story that comes to mind is in ROASO when he talks about guys trading for a fur coat ... good stuff.

what's funny is in a lot of other professions, money isn't the primary focus WHILE you work. it may be WHY you are there, but once you get there you do your thing, put in your time, and go home. you know the money will be there. again, this is most professions. obviously commissions based careers are exceptions.

anyway, money follows trading. or maybe i should say trading leads money.

take care -

omni
 
i believe there is money to be taken but people don't for some reason or anohter. pigs get slaughtered but sometimes it takes courage to be a pig.

Quote from lescor:

By balls, do you mean making large bets with big potential payoff, but if you are wrong you risk taking a huge hit?

If so, you had better be lucky early and often or you won't be long for this business.
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this is in reference to richard dennis. i think most people can be taught to be good traders by discipline. but only a handful will ever become paul tudor jones.

Quote from NKNY:

I disagree.....you need to replace Balls with discipline.

Then find a method/model that has a positive expectancy with a reasonable drawdown for your risk profile .... ( I like to keep the DD at no more then 20 %) Then, use your new discipline that you just acquired and trade it without second guessing it. Enter when you have to and exit when have to ....IE: when the rules say you must....! You don't stay in another day waiting for it to come back. If your still doing that you have a long way to go my friend. Your trading without a plan...your pissing in the wind...

But hats 1/2 the battle ..

What about position sizing.....You could have a great system and get killed if all your eggs are in one basket. If you must trade one vehicle then make it an etf or index futures but STOP trading all of your portfolio on a single or a couple of stocks. Especially If your trading the stock market. If the market is going up 3 % then why buy 1 or 2 stocks. you may even lose money if they go down while the market as a whole advanced. That Ever happen to you...? And I don't want to even talk about adverse news that could cut you stock in 1/2...ouch ...What about your short opening up from 10 to 50 after a halt....you say it can't happen to you.. You may be right but are you trading or gambling....How much of you account will you lose if a stock opens 500 % higher.

Try and identify stocks that have a tendency to advance more then the market does when it's advancing and decline less then the market does when it's declining. Reverse for shorting.... Now it's a tendency not an everyday thing. YOu can only see this tendency over weeks and months....This may help you get a leverage effect without leverage.

Your thinking why not simply trade trade the Q with leverage....I don't trade the QQQQ with leverage because the leverage is even sided as opposed to my basket which holds stocks that have met my criteria ...... In other words, in an up move I may make better gains then the Q while losing less then the Q when the Q declines. YOu may even see times when the Q declines a little while the basket advances.... Thts why...

So shelf the Balls and discover the brain...it will help you find something that works....then use discipline to trade it....



Nick
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Quote from Lights:

(edit) i believe, to make size in this market you need balls
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bingo.

definitely a different slant than the first version... :p

and likely true.

or at least, it is if you make one more mod...

"to make size in this market, in a time period shorter than years...."


i have ended up with a split account and split personality :p

I have 75% in swing-trades in energies and PM's coming off the bottom 4 wks ago.... i.e. fairly conservative profile....and 25% in 1-2 day trades of high potential, and risk. So half my brain is running the conservative trades while the other half is gunning for the big one....it's very confusing... :D :D

...but working well... :)
 
well i wish all you guys put in hard work and make.

Quote from d9d:

bingo.

definitely a different slant than the first version... :p

and likely true.

or at least, it is if you make one more mod...

"to make size in this market, in a time period shorter than years...."


i have ended up with a split account and split personality :p

I have 75% in swing-trades in energies and PM's coming off the bottom 4 wks ago.... i.e. fairly conservative profile....and 25% in 1-2 day trades of high potential, and risk. So half my brain is running the conservative trades while the other half is gunning for the big one....it's very confusing... :D :D

...but working well... :)
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