%%% none of your posts are clear
%%%The part about the 200dma thats not clear is how you use it
You going to shoot Bambi
Good hunting. 
The concept of house money, selling half when the price doubles and letting it ride..
- Thread starter HolyGrailSeeker
- Start date
%%%The part about the 200dma thats not clear is how you use it
You going to shoot Bambi
Good hunting. That's my point, you're talking about big traders, who work or worked in the financial sector, with sophisticated tools and knowledge in hand. I've never pretended to be one, you do. Heck, I don't even know how to read an option, but it doesn't stop me from making money. And I don't worry about margin calls either.
I'm sorry if my simplicity irks you. My grounding principle is "never woulda, coulda, shoulda". It's hard enough to make the decision to buy, then to sell; I don't worry about squeezing ultimate efficiency.
In fact, what brought me to trading is the ridiculous returns dangled by finance wizards for giving them my money.
%%So you're not keeping track.
DD/snoopy;
sorry if i was bit blunt on 200dma. Speaking of blunt , you ever study Stock Traders Almanac, 2000, 2014, 2020??? [Actually i havent done a study on 2020\ i use my own data for that/LOL]
Are you a investor/inVestor\ trader, or both like me.........................................................??
Murray T;
I haven't looked at the Stock Traders Almanac. I try and stay away from stuff that will bias my thinking. I'd rather trade what I see on the charts.
I prefer to think of myself as a speculator. I'm buying the stock because I think it will increase in value. I don't care about the underlying company, only how the stock performs.Are you a investor/inVestor\ trader, or both like me.........................................................??
I guess I should have replied to your prior post directly when I said the following:
"Then there is opportunity cost.
Hanging on .............. on hope alone - is not cheap."
But I see you got my point, even though your prior post talked, and still seem to believe in, hanging on to a loser.
%%%%%% none of your posts are clear
The part about the 200dma thats not clear is how you use it
You going to shoot Bambi
DD [aka] Snoopy;
200 dma , i use it like 50 period ma. TZA,TWM looks like it may cross 200dma, maybe OCT, both already crossed 50dma.QLD already crossed 200 dma, in.............................................
SO i Use them with discretion.
I seldom pay attention to drawdowns in QLD unless its SEPT........;
but realized gain may more helpful in tza or twm. As far as OCT being a jinx month like Stock Traders Almanac, no such thing as jinx or bad luckLOL[ But i looked up the word jinx in Websters dictionary, also means those hoodoo
,spike amazing rock formations in western US .Amazing pattern]Didn't need to read your point to have factored in opportunity cost in trading decisions. I believe that sometimes what you call a loser can turn to become a winner given time.
For example, I held BABA and AMZN shares. Both fell significantly and I did not have stop losses. I sold and took the hit on BABA but held on to AMZN which came back to make me a nice return. My logic was that AMZN is solid enough to come back, while BABA is caught up in the Chinese turmoil and unlikely to come back anytime soon.
I am fully aware that had I put stop losses on both I would have been better off taking small hits on both and catch either on the rebound.
this statement is a fallacy because you are constantly reinvesting our capital into new trades. There’s no such thing as a “locked in gain or loss” because the next day whatever cash you hve put into your “pocket” will be put into the next trading opportunity.
The idea that a gain or loss isn’t real until it is in your pocket runs contrary to the idea of time value of money.
Yes, I happen to reinvest quickly after closing a trade for that reason. But I could just as well not, simply because the market is dumping and I prefer waiting for the right opportunity to get back in. I pulled my 401k to cash a day before the March 2020 crash and went back in about 30 days later. Wisest move I made in my short trading life.
Second statement debunks first.