Pink hole.
New trader. Is my strategy ridiculous?
- Thread starter slouse
- Start date
Not a whole lot if you martingaled it. Doubling up everytime you went down. It would start to add up....
Best post in thread.
Couple of random comments.
Most people lose money, so common thinking by logic is flawed.
Your strategy is dangerous in equities much more efficient in indices, particularly dividend paying indices, ie. spy or dia. Remember that stocks can go to zero, indices will not.
Start slow, solid risk management and no leverage is paramount.
Buy low, always, ie 200 daily MA would be neutral, below is low, use wave lows as point of entries not higher lows and least of all higher highs.
Spread with patience.
I was losing trader until a kind soul pointed the above great strategy to me.
Most people lose money, so common thinking by logic is flawed.
Your strategy is dangerous in equities much more efficient in indices, particularly dividend paying indices, ie. spy or dia. Remember that stocks can go to zero, indices will not.
Start slow, solid risk management and no leverage is paramount.
Buy low, always, ie 200 daily MA would be neutral, below is low, use wave lows as point of entries not higher lows and least of all higher highs.
Spread with patience.
I was losing trader until a kind soul pointed the above great strategy to me.
You are posting on the wrong site. This site is there for laughs. Vast majority of these posters are jokers. A few may be profitable but they don't make much. They can make $250K a year only in their dreams.
Once you have the money to trade markets, regardless of age, the first rule is to protect it till you have proven systems that you have coded. Learn programming and take a few hardcore graduate level statistics classes. If you can't code the system, it's bullshit. Never trade a system if it's discretionary. Discretionary trading edges died a long time ago.
Don't confuse massive risk taking with having a profitable system. There are several Journals on this board that prove how disastrous martingale systems are once the run of luck is over.
If I were in your situation I would first pay off the roof over my head. Then invest in other properties that cash flow positive, after taxes, to pay all monthly expenses. Play the markets with a very small amount. Take 90% of your liquid net worth and find a damn good financial adviser to invest only in dividend paying trusts that pay out every month. Keep your eye on the few good ones that will go down with the rest of the markets.
If you are educating yourself, plan on spending a good 8 to 10 years in the markets before you start making 6 figures or more in the markets. Any winnings now you chalk it up to luck.
Once you have the money to trade markets, regardless of age, the first rule is to protect it till you have proven systems that you have coded. Learn programming and take a few hardcore graduate level statistics classes. If you can't code the system, it's bullshit. Never trade a system if it's discretionary. Discretionary trading edges died a long time ago.
Don't confuse massive risk taking with having a profitable system. There are several Journals on this board that prove how disastrous martingale systems are once the run of luck is over.
If I were in your situation I would first pay off the roof over my head. Then invest in other properties that cash flow positive, after taxes, to pay all monthly expenses. Play the markets with a very small amount. Take 90% of your liquid net worth and find a damn good financial adviser to invest only in dividend paying trusts that pay out every month. Keep your eye on the few good ones that will go down with the rest of the markets.
If you are educating yourself, plan on spending a good 8 to 10 years in the markets before you start making 6 figures or more in the markets. Any winnings now you chalk it up to luck.
A variant of the old "double up and add one" strategy. There's a mathematical edge there, but Vegas casino owners ain't dumb. They have maximum and minimum bets on every table, and those bet limits are specifically designed to cut the edge noted above into negative numbers. Play in Vegas long enough, and the house is going to win, every time.
lmao
what you should do is effectively the same thing, except only when it makes sense.
Most likely, say, when a stock is uptrending and you think it is oversold, buy 10% of your position and if it rises pyramid, if it falls, average down, or double down, until the pullback looks like a reversal.
To ensure this you could place a protective put/s
Most likely, say, when a stock is uptrending and you think it is oversold, buy 10% of your position and if it rises pyramid, if it falls, average down, or double down, until the pullback looks like a reversal.
To ensure this you could place a protective put/s