Livermore, Tudor Jones and Cohen

Standard Oil · Oct 28, 2009

Quote from Pension_Admin:

I am familiar with how Livermore trade, and how he is able to more than double his account with an "operation", but one thing I never quite know is how he manage his risk and stop loss. It would be great if you could shed some lights on this.

PA

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IF you buy/sell the right stocks at the right time, stops are not necessary provided you are using proper portfolio allocation ratio's.

Livermore although a great trader was in my opinion reckless in this area and his boom/bust cycles where his ultimate demise.

Cohen and Jones on the other hand understood this and took all the good from Livermore but added prudent mathematics to their skill sets.

deaddog · Oct 28, 2009

Quote from Standard Oil:

I'm a retired money manager that now plays golf and occasional mentors traders.

Has your golf game improved since you retired?

I find golf to be a lot like trading. You play the same course with the same rules, using the same tools, searching for what you think is perfection. Yet each day presents different challenges and perfection stays just out of reach.

Love the game. It's like sex. You don't have to be good at it to enjoy it.

Standard Oil · Oct 28, 2009

Quote from deaddog:

Has your golf game improved since you retired?

I find golf to be a lot like trading. You play the same course with the same rules, using the same tools, searching for what you think is perfection. Yet each day presents different challenges and perfection stays just out of reach.

Love the game. It's like sex. You don't have to be good at it to enjoy it.

LOL

Well I would have to ask my wife about the sex thing but yes my golf game went from a 12 to a 9 since I retired earlier this year.

Redneck · Oct 28, 2009

Quote from Standard Oil:

RN,

After reading several of your posts, I consider you one of the better posters in this forum and I have no doubt that your also one of the few profitable traders on here so I'm sure you know exactly what I'm talking about.

For the sake of others I will expand further.

Consider what the market is for a moment. In my opinion the market is nothing more then an auction house.

The final price paid is two fold.

One, historical price levels and Two, the newly perceived value.

If price is moving too or from key levels a trader needs to pay close attention to how that auction is playing out.

Is it fast and furious, is it slow and methodical, is it erratic etc, etc...

This requires detailed analysis and will either confirm or negate on various time frames.

Further more not all price levels are created equal. A great trader can look at a chart and see where the majority of buying pressure or selling pressure "should" be located. I understand these are vague concepts to express into written words but it's the best I can offer on such a format.

SO,

Thank You for the very kind words Sir

And I believe we are very kindred spirits (trading wise)

Best Regards and Good Trading to You

RN

StLouisTrader · Oct 28, 2009

"my golf game went from a 12 to a 9"

Very nice work!

Standard Oil · Oct 28, 2009

Quote from StLouisTrader:

"my golf game went from a 12 to a 9"

Very nice work!

Thank you but to be completely honest I did hire one of Hank Haney's (Tiger Woods coach) top instructors to help me get there.

deaddog · Oct 28, 2009

Quote from Standard Oil:

Thank you but to be completely honest I did hire one of Hank Haney's (Tiger Woods coach) top instructors to help me get there.

Now you have my interest. What did you changeand how long did it take you?

athlonmank8 · Oct 29, 2009

Quote from Standard Oil:

Cohen and Jones on the other hand understood this and took all the good from Livermore but added prudent mathematics to their skill sets.

More...

Correct me if I'm wrong, but Jones wasn't the head man on that though.

Standard Oil · Oct 29, 2009

Long Candidates:

None

Short Candidates:

BRC
MAA
DEI
TXRH

The S&P and the QQQQ look like they "may" pause here but the Dow has some room left to the downside.

We are approaching some significant levels on the major Index's and that can effect how our individual stocks would otherwise behave.

TraderZones · Oct 29, 2009

Quote from athlonmank8:

He's spent YEARS doing this and you expect him to just hand it to you?

There are too many fakes on ET to consider this as an established fact...