I realize this material is too complex for you to understand in context. I'm sorry I can't help you. Surf
Why TA does not work
- Thread starter JMN459
- Start date
Quote from tobbe:
Please help me and explain what it is I can't understand in context.
Sorry, I give up.
The good news is a TA trader named Pryme Tyme has accepted the challenge Of the Combine. He will be keeping a journal --- surf
Give up? You didn't even try to explain in your words. You cut and pasted something from a book and that was it.
A book? I'm not going to be a jerk. But it's not a book.
And you wonder why I don't take the time to explain every nuance to everyone who just doesn't get it. surf
OK, let's see, should I believe the words of a systems analyst and the self-described writer quoting him, or should I believe the words of the most profitable traders in the world?
Michael Marcus:
Q. Do you always pick a point where you will get out before you get in?
A. Yes, I have always done that. You have to.
Q. I would imagine in your case you canât actually put a stop in because your orders are too large.
A. Yes, but my broker can hold it.
Bruce Kovner:
âWhenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where Iâm getting out before I get in.â
Richard Dennis
Q. Do you always define your maximum risk point when you get into a trade?
A. You should always have a worst case point. The only choice should be to get out quicker.
Paul Tudor Jones:
Q. Do you always know where you are getting out before you put a trade on?
A. I have a mental stop. If it hits that number, I am out no matter what.
Gary Bielfeldt:
Q. How much risk did you allow when putting on a trade?
A. Generally anywhere from ½ to 1 ½ points.
Q. So if you tried to pick a spot that looked good and it didnât work, you would bail out and try again at another spot?
A. Right.
Ed Seykota:
Q. Do you decide where you are getting out before you get in on a trade?
A. I set protective stops at the same time I enter a trade.
Larry Hite:
Q. What makes Mint different? How have you been able to achieve return/risk ratios far above the industry average?
A. So the very first rule we live by at Mint is: Never risk more than 1 percent of total equity on any trade.
David Ryan:
Q. Since you use an extremely rigorous selection process, do you have a high percentage of winners in your stock picks?
A. No, only about 50/50, because I cut the losers very quickly. The maximum loss I allow is 7 percent, and usually I am out of a losing stock a lot quicker.
Marty Schwartz:
Q. From time to time, you have alluded to your trading rules. Can you list them?
A. That brings me to my next rule: Before taking a position, always know the amount you are willing to lose. Know your âuncle pointâ and honor it.
Mark Weinstein:
Q. Any final advice you have for a beginning trader?
A. You have to learn how to lose; it is more important than learning how to win. Limit losses quickly.
Tom Baldwin:
Q. Do you have to be somewhat of an egomaniac to be a good trader?
A. Actually, the best traders have no ego. You cannot let ego get in the way of a trade that is a loser; you have to swallow your pride and get out.
Tony Saliba:
Q. Do you always know the maximum risk in a position that you hold?
A. Yesâ¦no matter what happens, I know my worst case. My loss is always limited.
Let me think on this for a while...
Nice deflection attempt 
Lots of anecdotal evidence. Obviously the market machine supports the use of fixed stops. It's how it feeds. Why do you think, when tested, stops degrade a systems performance? Yet, everyone supports their use.... Why the disconnect? This answer will enlighten you in how the market really works. Regards, surf
PS. Lemme see who I believe, unbiased scientific research into the nature of the market or interviews from the 1970's and 80's from folks whose survival depends on taking YOUR money? hmmmm, let me think about this
PS. Lemme see who I believe, unbiased scientific research into the nature of the market or interviews from the 1970's and 80's from folks whose survival depends on taking YOUR money? hmmmm, let me think about this
You know how the market works? You don't have a working method after 22 years! LMFAO