You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
New trader. Is my strategy ridiculous?
- Thread starter slouse
- Start date
Get me a job at where you work.
Quote from slouse:
I should mention I drive a 1998 Altima with 150k miles. I don't care about material possessions...only money.
Slouse, what would/do you do with the money if you don't care about material possessions. I mean what good is it then? Do you put the money in a pool and swim in in it like
Mr. Scrooge McDuck, I don't understand. Do you show women your bank statements to turn them on?
Quote from ES.Dreamer:
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.
definitely stick with indices
martingaling with stocks is effing dangerous
OP,
Don't be an idiot about risk management. I'm young like you (22) and I have the ability to trade 20 es contracts at a time very comfortably yet I only trade 1 at a time. Be comfortable with your ability before you start throwing 100's of thousands at the market. I'm just to the point where I am about ready to up the ante and this is after two years of 12-14 days of reading , watching markets, practicing methods ect. IMO you should only be adding if your position is winning and then have your stop at break even so it's a free trade and your using the house's money to up the bet, not your own.
Good trading to you !
Don't be an idiot about risk management. I'm young like you (22) and I have the ability to trade 20 es contracts at a time very comfortably yet I only trade 1 at a time. Be comfortable with your ability before you start throwing 100's of thousands at the market. I'm just to the point where I am about ready to up the ante and this is after two years of 12-14 days of reading , watching markets, practicing methods ect. IMO you should only be adding if your position is winning and then have your stop at break even so it's a free trade and your using the house's money to up the bet, not your own.
Good trading to you !
for the next 3-6 months,there is a strong possibility that spx goes to under 700,all stocks will be lower,if you continue this strategy of averaging on the buy side and your a novice at reading the market, the market will take your money,try doing the same thing averaging short call sprds,have a max cash loss for the times you are wrong,taking losses are some of the best trades you will ever make...remember the purpose of trading is to aquire money , not giving it back,limiting the losses ,is the fastest way to grow the pileQuote from slouse:
I'm not sure what's so hard to believe about a 26 yr old making $250k. Like I said, I work a lot of hours, avg almost 65 a week. Everyone I know at work makes at least $200k. It's not all salary. I get overtime, bonuses, etc. It's not like my base salary is 250.
There are certainly a lot of people younger than me making a lot more out there.
Anyway, I appreciate the comments and the PM's. I got a good laugh at the jokers on here.
I started buying real estate when I was 20, got a couple good properties in a hot market that boomed, where I made most of the cash I have. I don't even have a million in cash and equity yet, getting really close, though.
I should mention I drive a 1998 Altima with 150k miles. I don't care about material possessions...only money.
I'm going to continue doing what I'm doing until something goes terribly wrong.
Attachments
As the person who proposed the strategy in this thread... let me make something really clear before someone heads to a casino with the wrong idea: there is *no* mathematical edge there (for the player). Period.Quote from jeffers_mz:
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.
Quote from heech:
As the person who proposed the strategy in this thread... let me make something really clear before someone heads to a casino with the wrong idea: there is *no* mathematical edge there (for the player). Period.
if you look at interviews with card counters n what not
if you start making money against the house they'll escort you to a little room and harass you
They will just ask you to move to a different table so you would lose your edge. If you refuse, then they will take you the little room.
The problem is you're asking a whole bunch of people who don't make money trading, whether you're doing right by making money. If you make money, you're always right. If you lose all your money, you're wrong. What you need to do is spend a few months looking back at historical charts. See if what you're doing will work badly sometimes. Even if you're buying fundamentally strong companies, something bad could happen that would cause the company to run into bankruptcy.
If you want to get rich, then you'll need to add to winners, not double down on losers.
If you want to get rich, then you'll need to add to winners, not double down on losers.