Why Is The Obvious Not So Obvious?

Quote from The Oracle:

all good XX...but u must remember that those who start out do not have a clue what they are doing..and must therefore be very careful

the first and most important thing is to get your MAX % risk per trade worked out

so..lets forget all about the stupid books out there and look at what is required in order for someone to be able to learn what is required

$100K trading capital

MAX % Risk per trade= 1/8 of 1%..yes...i did say ONE EIGHT OF 1%

1/8 = 0.00125

100,000 x 0.00125 = $125

so..lets say u want to trade YUM

YUM = 49.41

MAX Stop = $125

Shares @ 20 cent stop = 600 rounded

OR

Shares @ 40 cent stop = 300 rounded

OR

Shares @ 60 cent stop = 200 rounded

OR

Shares @ 80 cent stop = 150 rounded

OR

Shares @ 100 cent stop = 125


now..what is OBVIOUS from this simple bit of maths:)

this so called R/R ratio is a wonderful thing..when right :D

and..just so that the brain can get working..here is YUM YUM:D

screenshot043c.png
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For a stock with a daily range of $2 the RR would be low except for the first two cases, and even then for the gain to be significant a large part of the daily range would need to be captured for winning trades. To make that capital really work several stocks would need to be traded each day if conventional RR thinking is employed.

A problem with a larger trading account would be getting orders filled to create larger positions. Thats definately the case with my current broker.
 
Quote from taoistmon:

their 'obvious' is based on .. essentially nothing. no sound reasoning what so ever.

ask yourself... what happens after the algo's stop trading in this fashion? when the lines are not so clear and everything becomes blurred.

which this is not a hypothesis. it is reality. things will change.
and by then. you will be a trained monkey.

so a prerequisite. thousands of hours logged watching the level two and the charts. then when (not if) the change happens
you will be able to at least make the next cut of established traders.
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taoistmon,

I hear you mentioned the Monkey? Here I am.

SAGITTARIAN MONKEY

This Monkey is lucky and carefree. He likes to think and act big. He will try and try again in order to succeed at what he wants to achieve.

MONKEYS MAKE EXCELLENT:

Bankers

Accountants

Sales representatives

Market traders

---
I've spent to years trying to figure out what they are talking about in this thread. Now you drop in and say that they are conditioning me for a failure. Man, this is not fair. Could you please, instead of making a one line accusations and make an effort to prove your point. Please.

If you talk to us, please consider us. Thank you.
 
Quote from rossky:

snake, it says till 2020 - it's even more encouraging

"... open the way ... by clearing away attitudes of ignorance so a greater truth and intelligence can begin to shine in our lives..." I love that! :)
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that`s right,till 2020, but as far as i remember it said it would feel better somewher around 2015-16.There is a table there,but i cant find it...

:D

Òàê ÷òî äåðæèñü, íå ïàäàé äóõîì!

:D :D :D
 
Quote from SnakeEYE:

that`s right,till 2020, but as far as i remember it said it would feel better somewher around 2015-16.There is a table there,but i cant find it...

:D

Òàê ÷òî äåðæèñü, íå ïàäàé äóõîì!

:D :D :D
More...

Still plenty of time to go, though. You were right. :)
 
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I've spent to years trying to figure out what they are talking about in this thread. Now you drop in and say that they are conditioning me for a failure. Man, this is not fair. Could you please, instead of making a one line accusations and make an effort to prove your point. Please.

If you talk to us, please consider us. Thank you. [/B][/QUOTE]

You want the answer.?

"The truth, you can't handle the truth"
Jack Nicholson

You want the answer and not how to
figure the answer out.
NPR, said the universe is actually accelerating.
Now I know why people want
A quick answer.
Faster computers.
HFT trading.
Faster cars.
I want to be at the head of the line.
You have been reading this thread for years
and you haven't figured nothin out. :eek:

A hahaha. You want the trade with no fear, the trade
that you make and you get sick, and feel like throwing up.
You want the trade that goes up, or down,
the night you can't sleep because you know you fucked up.
The money, the blown out account, the fear, the stress,
that eats away until you get used to it,
or you just stop, with no money and ulcers,
and the realization that you will be homeless, from a margin call.
Oh you want that trade?

Oh, and you want TO to give you the answer.?
WTF, and that isn't coded.
 
And yet the answer is so simple, I mentioned it before, here it is again.

Most traders lose money, and in order to make money, just do the opposite of what you do right now.

But it MUST be EXACT opposite.
 
Break down.
I had a mini one reading this and the box.
I don't know, it messed me up.
Now I am rebuilding.
That's how you do it.
And stop the whining question, oh TO,
I NEED THE ANSWER.
It shows that you are a whiner.
 
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