What’s the point of portfolio diversification?

[SimpleMeLike]

You wonder why you are unsuccessful and poor.

Good Moring newwurldmn,

LOL hahahahahahahahaha. Thank you for the laugh this morning.

Have a great day and stay safe!

 

[cesfx]

Well many of my trades lean toward opportunistic, ie, if lithium begins trending, then I'll pile into those stocks.

Your trading seem to be mostly stocks, and not intraday.

What do you need the algo's for?
are they for scanning, auto trading, portoflio managing?

 

[themickey]

.....What do you need the algo's for?
are they for scanning, auto trading, portoflio managing?

You can dig ditches all day long with a shovel, or you could use a machine to do the work.

Or another way of looking at it, shoot ducks with a bow an arrow or use a fully automatic shotgun.

But to answer directly, I run several algos which do different jobs, looking for contenders, finding best contenders, timing for entries and exits, indicating bullish and bearish markets, indicating which sectors are rotating, etc.

Some traders prefer looking at charts, I like to speed things up by looking at numbers.

 

[taowave]

Do you not look at charts,and if so,have you notified the Price Action Police??

You can dig ditches all day long with a shovel, or you could use a machine to do the work.

Or another way of looking at it, shoot ducks with a bow an arrow or use a fully automatic shotgun.

But to answer directly, I run several algos which do different jobs, looking for contenders, finding best contenders, timing for entries and exits, indicating bullish and bearish markets, indicating which sectors are rotating, etc.

Some traders prefer looking at charts, I like to speed things up by looking at numbers.

 

[themickey]

Do you not look at charts,and if so,have you notified the Price Action Police??

If you ever see institutional trading desks, what you'll mostly notice is several monitors and the majority of the realestate is taken up by rows of data.
The data provides a birds eye view of the greater landscape.
It's easier to read and faster, large rows of numbers and better still if color coded.
The charts are for confirmation if you want to zero in on something.
Data provides a quick reference to a large field, charts provide more detail view of a smaller field.
Think of data as a heatmap.
Think of charts as a magnifying glass.

 

[newwurldmn]

Having been on an institutional trading desk for a decade, this isn’t true. Charts are everywhere. Not the technical analysis charts but to see how things are moving.

If you ever see institutional trading desks, what you'll mostly notice is several monitors and the majority of the realestate is taken up by rows of data.
The data provides a birds eye view of the greater landscape.
It's easier to read and faster, large rows of numbers and better still if color coded.
The charts are for confirmation if you want to zero in on something.
Data provides a quick reference to a large field, charts provide more detail view of a smaller field.
Think of data as a heatmap.
Think of charts as a magnifying glass.

 

[themickey]

Having been on an institutional trading desk for a decade, this isn’t true. Charts are everywhere. Not the technical analysis charts but to see how things are moving.

There are institutions and there are institutions.
Some make money, others don't.
If an insto is trading predominantly from charts rather than data, well maybe God will save them.

 

[murray t turtle]

Unless you are Peter Lynch

%%
LOL Exactly uncommon sense=Peter Lynch;
or most any body with common sense does diversification.
Dont put all eggs in one basket even though capital markets[plural] are not as fragile as eggs,

 

[vanzandt]

If an insto is trading predominantly from charts rather than data, well maybe God will save them.

It always circles back to religion with you doesn't it Mick?

Me personally... I wrote an algo that says 3 Hail Marys and 2 Our Fathers the second I hit the buy button. So far so good.

 

[themickey]

It always circles back to religion with you doesn't it Mick?

Only yesterday two JWs came knocking on my front door.
If it's good enough them continually pestering, it's good enough me too.