Show Me The Money

Quote from Bones1955:


what finally helped them turn the tide to higher profits.
More...

For me it was blowing out a few accounts. :D

I can identify several key turning points (and I'm always looking forward to more). These are basically in order.

  • Realizing that no person or indicator can predict the future.
  • Trading a mechanical system, even when I didn't "agree" with the trade.
  • Learning not to be angry at my loved ones after a bad trading day.
  • Realizing that each trading method or system captures profit in a certain type of market action.
  • Learning to lay off the trigger when my system doesn't call for a trade. Instead, channel that energy into building and testing a new system to capture a new kind of market action.
  • Realizing that the market gives us a lifetime of once-in-a-lifetime opportunities.
  • Having faith in my ability to adapt to the market, so I could bet small, and make money a little at a time. No need to bet the ranch.
  • Realizing that exits are just as important as entries and evaluating my exits in a systematic way.
  • Understanding that I will always be able to trade. The markets will always be there. If I blow out i'll find a way to come back, and in the meantime learn from what happened.
  • Learning to evaluate a trading method by forward-testing it in real time, for a period of 30 days, and computing an odds table.
 
Quote from peterfigliozzi:



  • Realizing that no person or indicator can predict the future.
  • Trading a mechanical system, even when I didn't "agree" with the trade.
  • Learning not to be angry at my loved ones after a bad trading day.
  • Realizing that each trading method or system captures profit in a certain type of market action.
  • Learning to lay off the trigger when my system doesn't call for a trade. Instead, channel that energy into building and testing a new system to capture a new kind of market action.
  • Realizing that the market gives us a lifetime of once-in-a-lifetime opportunities.
  • Having faith in my ability to adapt to the market, so I could bet small, and make money a little at a time. No need to bet the ranch.
  • Realizing that exits are just as important as entries and evaluating my exits in a systematic way.
  • Understanding that I will always be able to trade. The markets will always be there. If I blow out i'll find a way to come back, and in the meantime learn from what happened.
  • Learning to evaluate a trading method by forward-testing it in real time, for a period of 30 days, and computing an odds table.
More...


peterfigliozzi,

Those are some great points!

The only one that scares me is the second from last one.

We should strongly believe that the market will always be there. That's one of the things that allows me to be patient and selective with my trades and money management.

But if I blow out I don't know if I can say that I will ALWAYS find a way to come back. There are many many factors that could prevent that.

I never want to even think about putting myself in a position where there is even a remote possibility that I could blow out. Too scary for me. But then again, things happen. But we should do everything we can to NOT put ourselves in that potential position.

You made some GREAT points and they were good to read.

Thanks,
gotta_trade
 
Quote from peterfigliozzi:




  • Realizing that exits are just as important as entries and evaluating my exits in a systematic way.
More...

That's a great point that I believe alot of people miss the boat on.

"evaluating the exits in a systematic way"

(Mark Douglas gets into that)
 
Answer me this one question: Stocks breakout and rally up EVERY DAY, even when the averages plunge in an allday selloff. You buy 2000 shares and let it go up .25 and then sell. You make $500. Two positions= $1000. YOU DONT GO BACK IN. You go for it again the next day. Does it take a genius to do that? No it does'nt. Teach yourself to do it by focussing on doing that, only. Paper trade until you get it. In about four weeks (you already have experience in the market) you will begin to know the high prob trades.
And dont trade out of a prop firm to incur all those costs and rules. Trade from home with a fast connection and pay low comm.
What is all this talk about consistently loosing money when stocks go up every day?
Maybe somebody should teach a course: "If it looks like it's going up, it could be going up. Get in for a quarter. KEEP TIGHT STOPS".
 
I am one of those fortunate few who has made a profit his first year. I lost about $ 5K my first month, and learned many lessons the hard way. Since then, I've turned 11 straight months of profit, and although I'm not getting rich, I am supporting my family on my profits (sorry, no declarations of money earned....).

My recommendations to you are as follows:

- Make sure you trade a system that you totally buy into, and feel comfortable trading with. The system you trade with has to be compatible with your personality and style.

- Make sure you only make trades that are consistent with your strategy. Never force a trade just because things might be slow on a given day, and opportunities for you don't exist.

- Make sure, and this is extremely important, that you exit losing trades promptly via sells or stop losses. Failure to rid yourself of a single losing trade, can easily wipe out gains from a day, week, or month. I speak from experience here. Never let your ego, or an emotion against a Specialist, e.g., get in your way of ridding yourself of a losing position. Again, I speak from experience.

- Try your best to get a good night's sleep before trading days, have a good breakfast, and exercise a bit, if time permits. Having a rested, clear head, goes a long way to successful trading. The days I feel crummy are usually bad trading days.

- Don't worry about what other guys are making. Work within your system, and just be conginizant of what you do.

- Do not set financial goal limits for yourself. This will ultimately force you into trades that you shouldn't make, for fear that you "won't make your quota". Trade to be smart.

- Educate yourself continuously about the markets. Good education, and continuing education, is real important. I worked for a financial services company (in IT) for 13 years, before trading, so I had a good grasp of the marketplace.

- Finally, enjoy your job. It is the best job in the world - no superiors, no subordinates, no commuting. It's just you vs. the market. It is one job in which you have total control of business (other than the forces of the market).

Best of Luck !!!!
 
This learning curve of blowing out your account a couple of times and chalking it up to experience is bull. If you don't know what you are doing and your risk parameters entail positions that can blow you up, go to Vegas and get a free drink while playing blackjack(at least you walk away with the glass). Knowledge and experience will allow only the best to succeed. I've been professional for 12 years and profitable every year although 2 years were not impressive to say the least. I never allowed myself to self destruct and blow out my account- STOP-STOP EVERYTHING
And that is my 2 cents:D
 
Quote from wrongway:

This learning curve of blowing out your account a couple of times and chalking it up to experience is bull.
More...

I agree with you 100%.

I did it before I learned about MM. Like most beginners I only thought about entries. Not exits or position size.
 
Quote from reid5525:

Answer me this one question: Stocks breakout and rally up EVERY DAY, even when the averages plunge in an allday selloff. You buy 2000 shares and let it go up .25 and then sell. You make $500. Two positions= $1000. YOU DONT GO BACK IN. You go for it again the next day. Does it take a genius to do that? No it does'nt. Teach yourself to do it by focussing on doing that, only. Paper trade until you get it. In about four weeks (you already have experience in the market) you will begin to know the high prob trades.
And dont trade out of a prop firm to incur all those costs and rules. Trade from home with a fast connection and pay low comm.
What is all this talk about consistently loosing money when stocks go up every day?
Maybe somebody should teach a course: "If it looks like it's going up, it could be going up. Get in for a quarter. KEEP TIGHT STOPS".
More...

Is this what they call an "EDGE" ???
 
Quote from damir00:



more to the point: they're highly unlikely to show up here pounding their chests like a young johnnie weismuller.
More...

I dont think you will see too many successful people willing to show you "performance" evidence. Since they have nothing to sell there is no reason to get into discussions about numbers.

A good rule to follow is that noise about earnings numbers is inversely proportional to actual earnings.
 
Cubano,
The question is: stocks go up every day. how can this be happening everyday before the eyes of traders and they cant consistently have a profitable week.
you do two positions each day: 2000 shares @ .25c = $500 x 2 = $1000day. five days of that = $5000. But there are stopouts and comm. if when you subtract that you have $2000week net, that's $8000month, and $96,000year.
if your net was $1500week then it's $6000month net, $72,000year net. When you get that working for you consistently move up to 5000 shares. do the numbers on that.
stocks go up every day. find out what's going on there, then trade them.
if you are not able to do the above get on here and talk about it. what's your approach? how do you enter the trade? do you get in early? do you let it go up some for price confirmation? do you buy in the first dip? do you buy on the up hook? how do your stopouts occur? what kind of volume are you buying on? do you trade 9:30 - 10, 10 - 11, or after? do you only trade big vol gain?
talk about it.
 
You must log in or register to reply here.
Back
Top