Hi Miki,
Sorry for the confusion and Welcome to Elitetrader!
Good to have you here.
Regards,
Candle
Sorry for the confusion and Welcome to Elitetrader!
Good to have you here.
Regards,
Candle
Serious issue : daytrader-swingtrader inner conflict
- Thread starter neo_hr
- Start date
Neo,
We seem to have the same problem i.e. not enough capital and experience to compete with the big boys. I have 6K in my account. I make at most two trades a week generally only one. If it goes the way I expected to go I close it on friday or when my stop gets hit. If I get stopped out on the same day that I make the trade, I just wait till next Monday so that I can look back at what went wrong and see if I can do better next time. I feel that with our limited capital swing trading is the only strategy. My goal is to make $250/week and not loose more than $100/week. If I loose $100 three times in a row. I am going to take a week or two off before I try my luck again. This is sort of my strategy. I read what other traders had to say and tried to incorporate their knowledge and experience and my risk taking ability to come up with a trading plan. I am new to this so I am eager to hear what other traders have to say about my strategy. Looking forward to learn from everyone here.
We seem to have the same problem i.e. not enough capital and experience to compete with the big boys. I have 6K in my account. I make at most two trades a week generally only one. If it goes the way I expected to go I close it on friday or when my stop gets hit. If I get stopped out on the same day that I make the trade, I just wait till next Monday so that I can look back at what went wrong and see if I can do better next time. I feel that with our limited capital swing trading is the only strategy. My goal is to make $250/week and not loose more than $100/week. If I loose $100 three times in a row. I am going to take a week or two off before I try my luck again. This is sort of my strategy. I read what other traders had to say and tried to incorporate their knowledge and experience and my risk taking ability to come up with a trading plan. I am new to this so I am eager to hear what other traders have to say about my strategy. Looking forward to learn from everyone here.
Welcome Doub'!
I think I just may be getting the "hang of it" but that is thanx to my great >inspiration< and mentor G. Actually there IS no way to predict anything, it can (and WILL) go any way at any time... There are certain things that can make odds work a little bit your way but generally it doesnt mean s***! (Please dont mind my language)
Support / Resistance - What does it mean? I mean How many times have I tried to short res. buy supp. (on paper luckily) only to get reamed the next moment, BUT! The thing is :
>YOU ARE PAYING STOP IN ORDER TO SEE IF IT WILL WORK YOUR WAY< Thats it! Either it does or it doesn't! You move on...
You could try and trade more frequently (3 times like I do) but decrease your size. If your acceptable loss is 100$/week you could risk 33$ three times. That way you dont allow big pauses between your trades and can learn more effectively. Works for me...
Anyway just my 2 cents... worth 1/3rd of it he he
I think I just may be getting the "hang of it" but that is thanx to my great >inspiration< and mentor G. Actually there IS no way to predict anything, it can (and WILL) go any way at any time... There are certain things that can make odds work a little bit your way but generally it doesnt mean s***! (Please dont mind my language)
Support / Resistance - What does it mean? I mean How many times have I tried to short res. buy supp. (on paper luckily) only to get reamed the next moment, BUT! The thing is :
>YOU ARE PAYING STOP IN ORDER TO SEE IF IT WILL WORK YOUR WAY< Thats it! Either it does or it doesn't! You move on...
You could try and trade more frequently (3 times like I do) but decrease your size. If your acceptable loss is 100$/week you could risk 33$ three times. That way you dont allow big pauses between your trades and can learn more effectively. Works for me...
Anyway just my 2 cents... worth 1/3rd of it he he
Here it is :
Say there are 3 people. One owns 1 CSCO and wants to sell it for 100$.
-What is the price now? 100$ I suppose
The other guy thinks ybout it and says OK, Im a pay the damn 100 bucks. And he pays it. Now there should be one trade on the tape sayin CSCO 100 1.
Here comes the third guy. Wants to buy CSCO for 100$ but the second guy is now asking 105$ for it.
-WHAT is the price now? 100? Cos of the last trade? 105$ cos ask is 105? Or 100 cos bid is 100?
Im willing to admit IM STUPID if this is a stupid question but im really trying to connect S/D law of economics and the stockmarket (I think this basic law moves the prices anyway so...) movement so this extreme example would be a lot of help if someone would elaborate on it a little.
Thanx all and have a nighty night!
Alex
Say there are 3 people. One owns 1 CSCO and wants to sell it for 100$.
-What is the price now? 100$ I suppose
The other guy thinks ybout it and says OK, Im a pay the damn 100 bucks. And he pays it. Now there should be one trade on the tape sayin CSCO 100 1.
Here comes the third guy. Wants to buy CSCO for 100$ but the second guy is now asking 105$ for it.
-WHAT is the price now? 100? Cos of the last trade? 105$ cos ask is 105? Or 100 cos bid is 100?
Im willing to admit IM STUPID if this is a stupid question but im really trying to connect S/D law of economics and the stockmarket (I think this basic law moves the prices anyway so...) movement so this extreme example would be a lot of help if someone would elaborate on it a little.
Thanx all and have a nighty night!
Alex
neo..
the price is not the bid because what if no one will sell so cheap? and the price is not the ask because what if no one is willing to pay so much? and the price is not the last trade because what if those were the only two people who cared to trade at that price? who cares what the "price" is.. the market is 100 x 105.. thats what we care about.. its impossible to know the exact supply and demand for a stock by looking at the Level 2.. there can always be any number of buyers/sellers sitting on the fence waiting for some random criteria to enter or exit the market..
-qwik
the price is not the bid because what if no one will sell so cheap? and the price is not the ask because what if no one is willing to pay so much? and the price is not the last trade because what if those were the only two people who cared to trade at that price? who cares what the "price" is.. the market is 100 x 105.. thats what we care about.. its impossible to know the exact supply and demand for a stock by looking at the Level 2.. there can always be any number of buyers/sellers sitting on the fence waiting for some random criteria to enter or exit the market..
-qwik
> My goal is to make $250/week and not loose more than
> $100/week. If I loose $100 three times in a row
Unfortunately, based on $6k bankroll a goal of $250/week is definitely possible but may not be probable over the long-term. I wouldn't get discouraged if you lose $100 three weeks in a row as it will happen.
Traders inevitably experience ~20% drawdown at any given time. Your results may vary depending your trading style.
Just think of trading like like playing Black Jack. You have a $600 bankroll and are betting $25 per hand. Not quite the same analogy by the point is that you will win/lose about half the time, so expect some drawdown. Just hope your winners are more than your losers!
If you have a system that is 50% winners with 2x winners-to-losers, and are comfortable with other risk factors, go trade the e-mini futures and get some real leverage for that $6k!
> $100/week. If I loose $100 three times in a row
Unfortunately, based on $6k bankroll a goal of $250/week is definitely possible but may not be probable over the long-term. I wouldn't get discouraged if you lose $100 three weeks in a row as it will happen.
Traders inevitably experience ~20% drawdown at any given time. Your results may vary depending your trading style.
Just think of trading like like playing Black Jack. You have a $600 bankroll and are betting $25 per hand. Not quite the same analogy by the point is that you will win/lose about half the time, so expect some drawdown. Just hope your winners are more than your losers!
If you have a system that is 50% winners with 2x winners-to-losers, and are comfortable with other risk factors, go trade the e-mini futures and get some real leverage for that $6k!
WHAT is the price now? 100? Cos of the last trade? 105$ cos ask is 105? Or 100 cos bid is 100?
Snap shot quotes will show you all three. Level II shows bid/ask. Charts are based on trades. Settlement (closing prices)... I forgot what the exact algorithm is, but I'm pretty sure it's based on trade data.
voodoo
Snap shot quotes will show you all three. Level II shows bid/ask. Charts are based on trades. Settlement (closing prices)... I forgot what the exact algorithm is, but I'm pretty sure it's based on trade data.
voodoo
Simple Supply/Demand Question
Here it is :
Say there are 3 people. One owns 1 CSCO and wants to sell it for 100$.
What is the price now? 100$ I suppose The other guy thinks ybout it and says OK, Im a pay the damn 100 bucks. And he pays it. Now there should be one trade on the tape sayin CSCO 100 1. Here comes the third guy. Wants to buy CSCO for 100$ but the second guy is now asking 105$ for it.
-WHAT is the price now? 100? Cos of the last trade? 105$ cos ask is 105? Or 100 cos bid is 100?
The above question and answer are excellent, and one of the reasons that some of us prefer to trade listed stocks where the Specialist is responsible for a "fair and orderly" market (hold the comments about about how you love the NAZ because of the volatility, we let our traders trade whatever market they choose, as long as they're making money
. The OTC system of market makers is what is called a "fragmented" market as opposed to the single marketplace. A single marketplace allows for single price openings and closings (which make for great trading strategies as you all know), and also reflects fair pricing so you can get "in" or "out" within a decent price range. During extreme moves in the overall market, many MM's simply step back away from trading at all, the Specialists cannot do that (unless they get permission to "ST" the stock (stop trading)).