graftonian
1,089 posts
msg #155391
- Ignore graftonian |
1/21/2021 8:39:43 AM
@redversa, I agree, especially number 6
graf
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marine2
963 posts
msg #155396
- Ignore marine2 |
1/21/2021 12:03:33 PM
I hear you too Red, I used to use the IBD rule of staying in until you hit a 8% drop in your initial buy point. That 8% drop turned into more than that. Then when it finally wanted to go up it took forever to cover the loss just to get into positive territory. It’s why with my trading strategy I use the 2%- 2 1/2% drop rule. All because I know shortly that stock will turn upward into a nice gain. Less time to wait for it is good. Or, obviously you can buy down in increments until the stock rears up and begins its Northward movement. All depends on the money you have to work with and the patience in believing why you bought that stock in the first place. No one will be 100% correct on stock picking but, you need your filter’s success rate in the 80% and higher. Backtest how you can until you find the filter(s) that give you that.
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miketranz
961 posts
msg #155397
- Ignore miketranz
modified |
1/21/2021 2:27:47 PM
Marine,taking a 2% loss will keep you in the game.That's a safe loss point.Everyone has a different amount of risk tolerance.You just have to find out what works for you,what your pain level dictates.Red,I got you beat.How's about a $2500 lunch.Yeah,that's when they get you.Also,treat trading like a business.Make a plan,work the plan with a good exit strategy no matter what.Best,Mike...
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graftonian
1,089 posts
msg #155398
- Ignore graftonian |
1/21/2021 4:22:59 PM
A case in point. On jan15 I bought POLA for 13.50. By the eod POLA was down to 11.50 (a 15% loss).
Should I have sold?, dunno, but sold today for 17.42 (29% gain)
Graf
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novacane32000
331 posts
msg #155399
- Ignore novacane32000 |
1/21/2021 6:34:38 PM
True Story
I am talking to a Nurse today who just started trading on Robinhood a few months ago (She has a desk job).
She shows me her acct. $124K. "Nice" I said. " I made $24K just last Tuesday," she tells me and then shows me all the trades.
"Wow, you'll have to share your trading secrets with me" I smiled.
So she says " Easy, I just don't sell until it goes up"
"No Stop"
" What's that" she laughed
"You have to have a stop, how much pain can you bear?"
She then tells me she was down $18k on one trade and it recovered. I tried telling her that her acct would eventually blow up trading like that but not sure that clicked when I mentioned it.
Ignorance is bliss
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miketranz
961 posts
msg #155400
- Ignore miketranz |
1/21/2021 8:05:53 PM
Nova,Robinhood nurse trading with no stops? It's only a matter of time before that account gets wiped out.I know a few people who traded like that.As a matter of fact they all rode a single stock down to delisting.I'm talking 100k accounts.It's going come back,I'm only down a little,it's a long term trade,I won't sell it,I can't be wrong.Sound familiar? News flast,they don't always "come back".There's a book called WIPED OUT.How I Lost a Fortune in the Stock Market by an unknown author.I highly suggest that anyone who has issues with taking a small losses read it.Miketranz...
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Mactheriverrat
3,153 posts
msg #155401
- Ignore Mactheriverrat |
1/21/2021 10:39:08 PM
@graf - You followed the up trend and made a good gain. Yes its hard to hold on a down day. That's why I believe in trends.
@mike
There are a lot of traders out there like that Nurse and with the Robinhoods of the world. They will get burned with no points to sell or use of stops. They will say "oh I'm in for the long haul". I seen it of fourms talking about GE
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xarlor
581 posts
msg #155404
- Ignore xarlor |
1/22/2021 1:11:00 PM
I like sandjco's rules back in March 2020 and view them as a good 10 commandments for discipline and emotions:3/18/2020 12:53:30 AM
What I've "uncovered"...I'd like to call them "rules" but I know I will most likely break a few here and there and then go back to "self therapy" to try not to do it again!
1. You are only as good as the last trade. Not complicated. Check your ego at the door.
2. Stocks don't have feelings; go long or short.
3. Do not trade during the first 15 minutes.
4. No revenge trade. Babe burned you; no need to chase. There are other babes.
5. Adding to a losing trade is most likely a crap shot. Set your limit; let it go. Hard to fix ugly.
6. Technique/Plan is useless if the mind is weak
7. You don't have to label yourself...swing or scalp or ? All you need to know is that you are not buying and holding if you are trading off charts
8. Profit is profit. So what if you may have missed the big run...knowing you called it correctly builds habit and the ability to spot the next one.
9. shooting consistency all the time is better than going for the home run all the time.
10. Market can be illogical. Being "right" can be expensive as time may not be on your side to fix the wrong entry
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graftonian
1,089 posts
msg #155406
- Ignore graftonian |
1/22/2021 6:57:18 PM
Amen
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SFMc01
358 posts
msg #155409
- Ignore SFMc01 |
1/23/2021 10:22:36 AM
Re RULES: I'm primarily a Scalper, but, not one who watches the screen closely all day. I use StockFetcher to identify scalping opportunities, both long and short, to be executed when the market opens. Over time, I've come to the RULE that I never buy long at the open if the entire market is opening with a down trend.
Of course in specific cases this does not always work out to be the most profitable thing to do, However, in general, if I break this RULE, I find my total dollar losses exceed my gains.
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