I dropped out of sight and off this board. Not because I don't do trading, but I've come to the conclusion....at least for myself personally...that swinging for the fences just doesn't work. Especially as a swing trader.
Understand that I've studied this stuff for about a decade and tried all kinds of things. I can predict some price action setups, but not enough to quit my day job...so I dabbled and dabbled and dabbled. Didn't hurt my account, but didn't really help it. I'm not broke, so I must be doing something right. (It did make my broker rich). I've read my share of books...Bar by Bar was a great book, but why don't they consider volume spikes?
So lately, I just decided to take what I know and roll my own hedgefund. The purpose was just to see if I could beat the professionals. Besides, I wanted lots of dividend income...I believe in dividend income long term. So I made it out of mostly high dividend paying stocks and set up certain rules about when sell, when to buy, setting stops, etc. Very heavy in money management.
It's been 25 days (18 trading days), and this thing just keeps working. But it's working better than I could have hoped. I've made about 3.5%...maybe 4% counting dividends I haven't received. The thing is, I made it in very small increments, and the chart looks almost comical...it's almost linear, and goes up to the northeast. It's like every day, another 1/4% or so. It's what I always dreamed of...just way slower. I know the market was moving up nicely during this period, but now it's transitioned and the fund didn't break stride...it's designed not to.
Now I know that 3.5% doesn't sound like much. I've had hundreds (thousands?) of trades where I've made more than that in a single transaction. But the key is that this is systematic...almost automated.
So is that the trick? Money management and 1% a week? Compounding is crazy powerful if you've got enough money behind it. Hitting singles instead of home runs? Or are there people out there who are consistently making more than that? Not the people about to go broke...the successful traders?
SM
Understand that I've studied this stuff for about a decade and tried all kinds of things. I can predict some price action setups, but not enough to quit my day job...so I dabbled and dabbled and dabbled. Didn't hurt my account, but didn't really help it. I'm not broke, so I must be doing something right. (It did make my broker rich). I've read my share of books...Bar by Bar was a great book, but why don't they consider volume spikes?
So lately, I just decided to take what I know and roll my own hedgefund. The purpose was just to see if I could beat the professionals. Besides, I wanted lots of dividend income...I believe in dividend income long term. So I made it out of mostly high dividend paying stocks and set up certain rules about when sell, when to buy, setting stops, etc. Very heavy in money management.
It's been 25 days (18 trading days), and this thing just keeps working. But it's working better than I could have hoped. I've made about 3.5%...maybe 4% counting dividends I haven't received. The thing is, I made it in very small increments, and the chart looks almost comical...it's almost linear, and goes up to the northeast. It's like every day, another 1/4% or so. It's what I always dreamed of...just way slower. I know the market was moving up nicely during this period, but now it's transitioned and the fund didn't break stride...it's designed not to.
Now I know that 3.5% doesn't sound like much. I've had hundreds (thousands?) of trades where I've made more than that in a single transaction. But the key is that this is systematic...almost automated.
So is that the trick? Money management and 1% a week? Compounding is crazy powerful if you've got enough money behind it. Hitting singles instead of home runs? Or are there people out there who are consistently making more than that? Not the people about to go broke...the successful traders?
SM
