Lee, he won't respect that. Fish don't know what respect is. But I sure do know I don't respect him in any way. Not even if he was paul tudor jones.
-Dave
Evening trading US shares
- Thread starter Mr. Charts
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Lee, he won't respect that. Fish don't know what respect is. But I sure do know I don't respect him in any way. Not even if he was paul tudor jones.
-Dave
Grey1
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Nice one .. you can puke as much as you want ... That is fine with me ,, MORE MOMENTUM = MORE REWARD is wrong and dangerous and Richard needs guys like you to support him ..In fact i am glad you wrote what you wrote because you cannot technically or mathematically defend yourself hence the PUKE PUKE PUKE lol YAK what a thing to put on the BB ,,Horrible YaK
Grey1
I don't mathematically have to defend myself. I don't have to defend myself at all. I make money. Period.
You with your idiot mathematical sh*t. Go write a friggin' school book. People laugh at you, if you didn't already know.
How can you be so against everyone that trades different from you, just because you haven't got a clue how to trade momentum. Maybe you should take a course with mr.charts. Just because a few guys can't stick to their plan and blow up, Richard should quit coaching. That's the funniest thing. These guys blow up, because of their inability to be disciplined, and that's Richard's fault?? funny! But why do we (Richard, Naz, Lee and some others) make money trading momentum then. Without hedging are positions low beta sh*t stocks! Dude, you're making a fool out of yourself.
-Dave
Grey1
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Opps another day another $$$.. Awesome short of JOYG resulting in 978 return . The correct postion sizing would have been 1817 but the 17 did not go through .You see Richard if you know what you are doing you donot have to chase poor naive young traders,,
Muchas Gracis Mr market,,MY thanks goes to advanced technical analysis..
Muchas Gracis Mr market,,MY thanks goes to advanced technical analysis..
Attachments
You're a big boy! coochie coochie coochie cooh.
I'm really jealous, now. I traded WWY, MA, POT, HUM and ISE. The biggest movers today. WWY the best one. Almost 3 dollars per share. But too bad I don't have a VWAP engine. Now I missed out JOYG. I'm soo jealous.
All this without any mathematical sh*t. Ow, I guess it's luck!
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Grey1
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Wohooooo u sure you did not trade more stock in less than an hour, I tell you some thing ,, if you traded more you would have even made more $$$ consdiering you claim you trade 10 000 shares of AAPL ,, hey come on tell me some thing does MORE MOMENTUM = MORE PROFIT ?
OK I wont be trading as we have some resetting issue in my auto Trader I might or might not tradelater after 7
up $ 1167 before costs. Muchas gracias hey lee donot forget this phrase .
Grey1
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If you would read my posts a little better. Instead of being a chicken without a head. You'd know I stopped trading these sizes on stocks like AAPL because my edge is gone since October 2006. By know I have a new one. And I'm starting to size up again.
And yes guys, MORE MOMENTUM = MORE PROFIT for us momentum traders.
The guy can't even trade manually he needs an auto trader to do the work for him! Don't let me laugh. Go write a book about your mathematical risk management!
Is after 7 your bedtime?
Grey1
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DVDH ,,
I am sorry to see your edge is gone ( TOLD YOU DONOT TRADE THE MOMENTUM ROFL ) ,, Hope it will come back again .What would you do with out your edge ? Even though you been a naughty boy and been rude to me I donot mind to make a trader out of you next time you in UK .. now lets be serious, I have nothing against you because I realise what you must be going through when the strategy does not pay and you lose ur edge . Do yourself a fav ,, DO NOT trade a penny . I can arrange for you to come here and learn . I cannot gurantee you become a profitable trader in 1 day but i gurantee you be well pleased and you get a free drink too.
I have been coaching this chap last past 2 month and Friday he hit his record high return and 13 days NO LOSS up $26000 with $25500 base capital . Not bad hey
by the way , you are wrong i can trade with out my engine and MORE MOMENTUM = MORE PROFIT is rubbish .. just to let you know
Grey1
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LOLOL. I'm actually starting to find your posts funny.
I don't need no coaching. I don't trade pennies, I used to before october and made big money. I don't need your free drink. I can pay it myself.
I'm doing just fine trading momentum=profit. Don't need to trade your 5k (joyg) a minute stocks that aren't scalable. Why don't you just trade your way and let us trade our way! I don't care about your 26k in 13 days with no loss. I know what I make and I sure ain't complaining!
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timsk
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Time Out!
Gentlemen, Gentlemen, Gentlemen . . .
PLEASE quit the tit-for-tat arguments! As a long standing wannabe day trader, I regard this thread as a place of sanctuary where pro' traders of ALL shapes and sizes from all walks of life can exchange their knowledge and ideas in a spirit of mutual respect. I'll take a complete flyer here and say that I believe I speak for many subscribers to this thread when I say that I take great interest in - and derive great benefit from - the posts of Richard, Iraj, Dave and Lee. Not any one of you, but ALL of you - and many others besides. All 4 of you are trading gurus to people like me, and if I ever manage to trade half as well as ANY of you, I'll be a very happy man. Given my feelings, it is a rather unedifying spectacle to see the very traders I admire the most hurling abuse at one another. So guys, please, take some time out. You have much in common: each of you loves the markets and make a great living from them. You're all cut from the same clothe. So, if you find your emotions when posting on T2W running a little higher than they do when you're trading, allow the pro' trader in you to dominate and refrain from posting at all! That way, you retain your dignity and the thread remains a sanctuary for peeps like me. As a way forward, I suggest each of you post a trade - any trade - with a clear simple explanation of your position size and your reasoning behind it. Then, idiots like me can continue to pick up insights into the great skill that ALL of you have in abundance and are generous enough to share with subscribers of this thread
Lookin' forward to those trades . . .
Timsk
Gentlemen, Gentlemen, Gentlemen . . .
PLEASE quit the tit-for-tat arguments! As a long standing wannabe day trader, I regard this thread as a place of sanctuary where pro' traders of ALL shapes and sizes from all walks of life can exchange their knowledge and ideas in a spirit of mutual respect. I'll take a complete flyer here and say that I believe I speak for many subscribers to this thread when I say that I take great interest in - and derive great benefit from - the posts of Richard, Iraj, Dave and Lee. Not any one of you, but ALL of you - and many others besides. All 4 of you are trading gurus to people like me, and if I ever manage to trade half as well as ANY of you, I'll be a very happy man. Given my feelings, it is a rather unedifying spectacle to see the very traders I admire the most hurling abuse at one another. So guys, please, take some time out. You have much in common: each of you loves the markets and make a great living from them. You're all cut from the same clothe. So, if you find your emotions when posting on T2W running a little higher than they do when you're trading, allow the pro' trader in you to dominate and refrain from posting at all! That way, you retain your dignity and the thread remains a sanctuary for peeps like me. As a way forward, I suggest each of you post a trade - any trade - with a clear simple explanation of your position size and your reasoning behind it. Then, idiots like me can continue to pick up insights into the great skill that ALL of you have in abundance and are generous enough to share with subscribers of this thread
Lookin' forward to those trades . . .
Timsk
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Gentlemen, Gentlemen, Gentlemen . . .
PLEASE quit the tit-for-tat arguments! As a long standing wannabe day trader, I regard this thread as a place of sanctuary where pro' traders of ALL shapes and sizes from all walks of life can exchange their knowledge and ideas in a spirit of mutual respect. I'll take a complete flyer here and say that I believe I speak for many subscribers to this thread when I say that I take great interest in - and derive great benefit from - the posts of Richard, Iraj, Dave and Lee. Not any one of you, but ALL of you - and many others besides. All 4 of you are trading gurus to people like me, and if I ever manage to trade half as well as ANY of you, I'll be a very happy man. Given my feelings, it is a rather unedifying spectacle to see the very traders I admire the most hurling abuse at one another. So guys, please, take some time out. You have much in common: each of you loves the markets and make a great living from them. You're all cut from the same clothe. So, if you find your emotions when posting on T2W running a little higher than they do when you're trading, allow the pro' trader in you to dominate and refrain from posting at all! That way, you retain your dignity and the thread remains a sanctuary for peeps like me. As a way forward, I suggest each of you post a trade - any trade - with a clear simple explanation of your position size and your reasoning behind it. Then, idiots like me can continue to pick up insights into the great skill that ALL of you have in abundance and are generous enough to share with subscribers of this thread
Lookin' forward to those trades . . .
Timsk
Well said TIMSK.
Slanging matches will only discourage people with questions from posting them, and I for one wish to learn from everbodies experience.
Cheers
Andrew
Grey1
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My man ,,Gentlemen, Gentlemen, Gentlemen . . .
PLEASE quit the tit-for-tat arguments! As a long standing wannabe day trader, I regard this thread as a place of sanctuary where pro' traders of ALL shapes and sizes from all walks of life can exchange their knowledge and ideas in a spirit of mutual respect. I'll take a complete flyer here and say that I believe I speak for many subscribers to this thread when I say that I take great interest in - and derive great benefit from - the posts of Richard, Iraj, Dave and Lee. Not any one of you, but ALL of you - and many others besides. All 4 of you are trading gurus to people like me, and if I ever manage to trade half as well as ANY of you, I'll be a very happy man. Given my feelings, it is a rather unedifying spectacle to see the very traders I admire the most hurling abuse at one another. So guys, please, take some time out. You have much in common: each of you loves the markets and make a great living from them. You're all cut from the same clothe. So, if you find your emotions when posting on T2W running a little higher than they do when you're trading, allow the pro' trader in you to dominate and refrain from posting at all! That way, you retain your dignity and the thread remains a sanctuary for peeps like me. As a way forward, I suggest each of you post a trade - any trade - with a clear simple explanation of your position size and your reasoning behind it. Then, idiots like me can continue to pick up insights into the great skill that ALL of you have in abundance and are generous enough to share with subscribers of this thread
Lookin' forward to those trades . . .
Timsk
How do you expect me to explain to these guys compounded volatilty envelope and how one should drive correct postion sizing from such algorithm when they both ( I mean Richard and DVDH ) have problems realising the basic and elementary technical concept,
( more momentum IS NOT more profit ). They simply donot have the knowledge.
DBDH lost his EDGE month back and Richard still lurking around to find a new victim to charge him $260 for 40 miles drive petrol money or meet them up in Motor way junctions away from PC .. ,,,
WHich one of these guys has ever ever posted their full day Trade with their P/L from the broker's screen ..DVD claims he has traded 5 stocks to day all in one hour and managed the trades all under 1 hour and even took $3 run in one of them ( ... People on this BB are not daft. I have no problem with DVD because he has lost his EDGE lol
There are 1000s of top traders and i know at least 10 of them from my previous trading office who donot trade no way like me but they all have one thing in common ,, if you ask them to show you their LOSSES they DO .
I have always helped the member of this BB and in fact Sharky and myself go back to God knows how long ago as i used to have a BB called CITYINFORMER.COM and paul was one of my traders on the BB and he knows my agenda is nothing but to help people out and i have always done and i find it difficult to get LECTURE from an EDG LESS guy and a sales man like Richard about trading .
mean while I will carry on posting all my trades LIVE in cluding my losses day by day until i get bored lol
PS:- the final win to day was $1350 some thing ....
Grey1
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timsk
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Iraj,
In answer to your question: don't bother - just ignore them. They can outline their methodologies if they choose to and you can outline yours. If they are genuinely as clueless as you seem to be suggesting, their lack of knowledge will be displayed for all to see. I, you and everyone else can then laugh at their stupidity. There's absolutely no need for you to comment about them at all. Most members are capable of listening to a debate and then weigh up the pro's and con's and come to their own decision about what they think is right. Focus on YOUR approach - not what's wrong with Richard's, Dave's or anyone else's. If I'm in the market for a new car, I'll buy one from the person who demonstrates the benefits and features of the model under consideration. I certainly wouldn't ever buy one from someone ranting and raving about what the competition is up to.
Tim.
Okay, I am not usually one to post, but this was out of control. I have been trading with DVDH for a little over a year now. We both momentum trade. What is meant by momentum=more profits is true in the sense for a momentum trader. By no means is this a universal saying. As a momentum trader I find stocks that set up and when I get in they should move due to the entry and timing of the chart pattern and set up. This being said, if the stock does not move I get out, because obviously I was wrong. But this usually accounts for a 0-20 cent run against me depending on how volitile a stock is. Again I said USUALLY, of course there are times where a stock is moving a dollar a minute and its tough to get filled at a predermined -20 cents (it may be -30 cents). In these situations I will know there is greater risk and take a smaller position size.
I HAVE been taught about position sizing due to stop exits and not from your "uninformed" momentum traders. I usually risk at the most $50 on each trade, but with momentum trading it is very rare to take the full stop due to my trading plan. Momentum trading is quick and of course we will not be gettin some odd lot to make sure every trade if our stop is hit, EXACTLY a preditermined loss will be what we take. When looking at the chart it is very easy to estimate how many shares you can take so that a stop will roughly be around the loss limit per trade.
So you don't think im just pulling **** out of my ass; according to the Investipedia (just because it was the first link that came up on google about momentum trading) "In momentum trading, traders focus on stocks that are moving significantly in one direction on high volume." If there is no large volume coming into the stock but there is a set up, MOST of the time there is a very small profit if any because there was no volume/momentum to propell the stock in your direction. This is where the momentum=more profits is true for momentum traders. I have seen many of the setups that I trade barely move at all because there is no momentum in the stock. But when there is momentum they do move and there is MORE PROFIT to be made off that MOMENTUM. This is not a hard concept, and it was taken out of context.
Hopefully that cleared some stuff up because this thread got ****ty quick.
I HAVE been taught about position sizing due to stop exits and not from your "uninformed" momentum traders. I usually risk at the most $50 on each trade, but with momentum trading it is very rare to take the full stop due to my trading plan. Momentum trading is quick and of course we will not be gettin some odd lot to make sure every trade if our stop is hit, EXACTLY a preditermined loss will be what we take. When looking at the chart it is very easy to estimate how many shares you can take so that a stop will roughly be around the loss limit per trade.
So you don't think im just pulling **** out of my ass; according to the Investipedia (just because it was the first link that came up on google about momentum trading) "In momentum trading, traders focus on stocks that are moving significantly in one direction on high volume." If there is no large volume coming into the stock but there is a set up, MOST of the time there is a very small profit if any because there was no volume/momentum to propell the stock in your direction. This is where the momentum=more profits is true for momentum traders. I have seen many of the setups that I trade barely move at all because there is no momentum in the stock. But when there is momentum they do move and there is MORE PROFIT to be made off that MOMENTUM. This is not a hard concept, and it was taken out of context.
Hopefully that cleared some stuff up because this thread got ****ty quick.
PitBull
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Day in the life of a momentum trader
Thought you might like this article I found detailing momentum trading. The last paragraph is the most significant, both pro's and cons. Yes, more profit but fraught with peril for the undisciplined.
Enjoy and have a nice day.
p.s. Let's get back to business.
A good way to illustrate momentum trading is to look at a typical day of a momentum trader:
He gets up an hour before the market opens, switches on his computer, goes online and immediately logs into one of the popular trading chat rooms. The site to which he surfs is probably one of Ken Wolff's Momentum Trader or Day Traders On-Line.
When looking at these boards, our hero focuses on stocks that are generating a significant amount of buzz. He looks at stocks that are the focus of trading alerts based on earnings or analyst recommendations. These are stocks that are rumored to be in play and are anticipated to provide the most significant price movements on high volume for that trading day.
While surfing the web, he will also turn on CNBC and listen for mentions of companies that are releasing news or are positioned to undergo significant movement.
He puts an eye to the morning equity options pages, where he looks for stocks with significant increases of volume in calls. Any increase in calls written is an important indication that a price increase or decrease above or below the option premium is expected to occur.
Once the market opens, he watches his initial list of stocks in relation to the rest of the market: are his stocks going up when the market goes down? Are they significantly increasing in price in relation to the rest of the market? Are they behaving consistently with the expectations based on his pre-market assessment?
He will then narrow his watch list to include only the strongest stocks: the stocks that are increasing more rapidly on higher volume than the rest of the market, the stocks that are trading contrary to the market and the stocks whose movements are clearly being propelled by external factors.
Analyzing the Charts
Once these key stocks are identified, he will analyze them further by examining their charts. The primary technical indicator of interest is the momentum indicator, the accumulated net change of a stock's closing/ending price over a series of defined time periods. The momentum line is plotted as a tandem line to the price chart, and it displays an axis of zero, with positive values indicating a sustained upward movement and negative values indicating a potentially sustained downward movement.
That upward or downward momentum indicator often immediately portrays a breakout for the stock, which means that even a period or two of sustained momentum will propel that stock in the direction of the breakout. At the same time as watching the momentum chart, he also has his Level 2 screen up, looking for evidence of a push, where bids start to line up (indicated by the presence of market-maker limit orders) and offers start to disappear.
When the trader believes he has identified a breakout, he does not necessarily need to jump immediately into the stock. He is not generally worried about missing the first one or two breakout ticks, but he has his hand on the buy trigger (or sell trigger in the case of a short sale, but a short sale must be done on an up tick) for one of the next momentum periods. And he is generally not too concerned about hitting the bid either, as he will have an easier time getting in at the market price. Then he places a market order.
In the Position
Once he has entered into his position, the white-knuckle ride and nail biting begins. Will the stock continue to move strongly in the direction of his momentum line? Or will it immediately change course, proving the momentum chart wrong and perhaps pointing to a trap set by the market maker? Or will the breakout fizzle quickly, providing some limited upside but not sufficient profit to make the trade worthwhile?
Whether the momentum fizzles almost immediately or continues to build, the trader remains glued to his screen. He is looking for a saturation point, where orders start piling up on the offer and bidding slows or thins at the market price a few levels back on the Level 2 screen. The saturation point does not mean the immediate end to the momentum, but it may be a sign that the top is near. So the trader sells his position (or covers his position in the case of a short sale) and takes his profits to pack it in for the day or to move on to the next stock on his list.
It should be noted that in the event of a breakout gone wrong, where a stock immediately turns direction and moves against the trader's wishes, a special strategy applies. Far from hoping for yet another reversal to make the stock go his way, this astute trader immediately cuts his losses and sells (or covers) his position. It is often a far better strategy to take a small loss early after a bad trade than to hope for a reversal later in the day. The odds generally ensure that a small loss will turn much larger the longer the trader waits with crossed fingers.
And here's where psychology rules the roost: the astute trader realizes that there will be bad trades that result in losses. Accepting that fundamental fact of trading life helps us manage our money so that trades that go swimmingly will outweigh these losses.
Pitfalls of Momentum Trading
Here they are:
• Jumping into a position too soon, before a momentum move is confirmed.
• Closing the position too late, after saturation has been reached.
• Failing to keep eyes on the screen, missing changing trends, reversals or signs of news that take the market by surprise.
• Keeping a position open overnight. Stocks are particularly susceptible to external factors occurring after the close of that day's trading - these factors could cause radically different prices and patterns the next day.
• Failing to act quickly to close a bad position, thereby riding the momentum train the wrong way down the tracks.
Because of these pitfalls, momentum trading is fraught with peril that can easily destroy even the most disciplined and knowledgeable trader; however, this style also offers the most potential for significant profit since there is rarely any factor inside or outside the market that drives a stock as powerfully as momentum. With a proper understanding of the technique, sufficient knowledge of the risks, and willingness to take an occasional loss, momentum trading offers an appealing choice for the aspiring trader who enjoys living on the edge.[/COLOR]
Thought you might like this article I found detailing momentum trading. The last paragraph is the most significant, both pro's and cons. Yes, more profit but fraught with peril for the undisciplined.
Enjoy and have a nice day.
p.s. Let's get back to business.
A good way to illustrate momentum trading is to look at a typical day of a momentum trader:
He gets up an hour before the market opens, switches on his computer, goes online and immediately logs into one of the popular trading chat rooms. The site to which he surfs is probably one of Ken Wolff's Momentum Trader or Day Traders On-Line.
When looking at these boards, our hero focuses on stocks that are generating a significant amount of buzz. He looks at stocks that are the focus of trading alerts based on earnings or analyst recommendations. These are stocks that are rumored to be in play and are anticipated to provide the most significant price movements on high volume for that trading day.
While surfing the web, he will also turn on CNBC and listen for mentions of companies that are releasing news or are positioned to undergo significant movement.
He puts an eye to the morning equity options pages, where he looks for stocks with significant increases of volume in calls. Any increase in calls written is an important indication that a price increase or decrease above or below the option premium is expected to occur.
Once the market opens, he watches his initial list of stocks in relation to the rest of the market: are his stocks going up when the market goes down? Are they significantly increasing in price in relation to the rest of the market? Are they behaving consistently with the expectations based on his pre-market assessment?
He will then narrow his watch list to include only the strongest stocks: the stocks that are increasing more rapidly on higher volume than the rest of the market, the stocks that are trading contrary to the market and the stocks whose movements are clearly being propelled by external factors.
Analyzing the Charts
Once these key stocks are identified, he will analyze them further by examining their charts. The primary technical indicator of interest is the momentum indicator, the accumulated net change of a stock's closing/ending price over a series of defined time periods. The momentum line is plotted as a tandem line to the price chart, and it displays an axis of zero, with positive values indicating a sustained upward movement and negative values indicating a potentially sustained downward movement.
That upward or downward momentum indicator often immediately portrays a breakout for the stock, which means that even a period or two of sustained momentum will propel that stock in the direction of the breakout. At the same time as watching the momentum chart, he also has his Level 2 screen up, looking for evidence of a push, where bids start to line up (indicated by the presence of market-maker limit orders) and offers start to disappear.
When the trader believes he has identified a breakout, he does not necessarily need to jump immediately into the stock. He is not generally worried about missing the first one or two breakout ticks, but he has his hand on the buy trigger (or sell trigger in the case of a short sale, but a short sale must be done on an up tick) for one of the next momentum periods. And he is generally not too concerned about hitting the bid either, as he will have an easier time getting in at the market price. Then he places a market order.
In the Position
Once he has entered into his position, the white-knuckle ride and nail biting begins. Will the stock continue to move strongly in the direction of his momentum line? Or will it immediately change course, proving the momentum chart wrong and perhaps pointing to a trap set by the market maker? Or will the breakout fizzle quickly, providing some limited upside but not sufficient profit to make the trade worthwhile?
Whether the momentum fizzles almost immediately or continues to build, the trader remains glued to his screen. He is looking for a saturation point, where orders start piling up on the offer and bidding slows or thins at the market price a few levels back on the Level 2 screen. The saturation point does not mean the immediate end to the momentum, but it may be a sign that the top is near. So the trader sells his position (or covers his position in the case of a short sale) and takes his profits to pack it in for the day or to move on to the next stock on his list.
It should be noted that in the event of a breakout gone wrong, where a stock immediately turns direction and moves against the trader's wishes, a special strategy applies. Far from hoping for yet another reversal to make the stock go his way, this astute trader immediately cuts his losses and sells (or covers) his position. It is often a far better strategy to take a small loss early after a bad trade than to hope for a reversal later in the day. The odds generally ensure that a small loss will turn much larger the longer the trader waits with crossed fingers.
And here's where psychology rules the roost: the astute trader realizes that there will be bad trades that result in losses. Accepting that fundamental fact of trading life helps us manage our money so that trades that go swimmingly will outweigh these losses.
Pitfalls of Momentum Trading
Here they are:
• Jumping into a position too soon, before a momentum move is confirmed.
• Closing the position too late, after saturation has been reached.
• Failing to keep eyes on the screen, missing changing trends, reversals or signs of news that take the market by surprise.
• Keeping a position open overnight. Stocks are particularly susceptible to external factors occurring after the close of that day's trading - these factors could cause radically different prices and patterns the next day.
• Failing to act quickly to close a bad position, thereby riding the momentum train the wrong way down the tracks.
Because of these pitfalls, momentum trading is fraught with peril that can easily destroy even the most disciplined and knowledgeable trader; however, this style also offers the most potential for significant profit since there is rarely any factor inside or outside the market that drives a stock as powerfully as momentum. With a proper understanding of the technique, sufficient knowledge of the risks, and willingness to take an occasional loss, momentum trading offers an appealing choice for the aspiring trader who enjoys living on the edge.[/COLOR]
Ey fishbrains,
I'm not lecturing anyone here. I'm just disagreeing with one of your statements. You always tell people they can't trade without one of your algorithms. That's just total bullsh*t. You call me an edge less guy. hahahahah. to funny for words. :cheesy:
You buy and sell the same stock in a different account and you show the winning account here on T2W. Now that's pathetic.
Grey1
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I am going to explain the basic of risk concept in an easy format.
Lets say we have two stocks stock A , Stock B ,,
Stock A is in the NEWS( lets say the company finds tons of Gold in Peckham )
Stock B has a technical reason to move..
Lets say stock A moves $2 and stock B only moves $1 ? which one you should have been trading ? Which one would give you more profit?
ANSWER= IT DEPENDS ON YOUR POS SIZE ( .. If i buy 1000 shares of Stock B would give me exactly the same of profit as 500 shares of stock A) .. simple easy peasy
hence the statment more momentun is more profit = nonesence
Now lets me go further.
SO if they both return the same amount why should not we be trading the momentum then ?
Answers= First of all youare all Technical traders and as a technical trader you should be trading technical MOVES and NOT momentum moves but this factor is not all that important.
Now I take you to the concept of risk,,
if i tell you lets rub a bank and we make £1 million profit or alternatively we could use our intelligence and do BUSINESS with bank and over 12 month we would make exactly the same amount.. which one would you go for ?
Of course, you might decide to rub the bank as it is much faster and shorter period to gain the £1 million profit but what about the risk ?
IN WALL STREET , fund managers talk about RISK ,, RISK RISK RISK and as a result THEY PLAN A RISK ADJUSTED RETURN STRATEGY ..
We as a daytrader should do exactly the same . A RISK ADJUSTED PLAN ..
RISK in TA is defined by Volatility ... Volatility is the root of all evils.. VOLATILITY must be tamed for trading , if you cannot tame it then you must meausre it and hence design a trading plan to include the UNIT OF RISK PER UNIT OF RETURN PRIOR TO TAKING THE POSTIONS,
You have two choices,,
you can use HISTORICAL evidence of volatility ( ATR ) to meaure RISK ( you cannot correctly do that on momentum trading because NEWS HAS JUST HIT THE STOCK TO DAY AND A STOCK WHICH WAS ONLY MOVING FEW CENTS YESTERDAY IT IS MOVING $$$ TO DAY )
Or you can use a PROJECTERED Volatilty model such as CSV model ( compounded stochastic volatility ) to measure the inherent risk of the current moves with in specific time frame.
Either way YOU MUST meaure it objectively.. ,, It is dead simple and yuou need not to involve yourselvess with complicated stuffs. WEEEEEEEEE. ( Read about ATR on web .. simple enough stuff for any trader with even minimal of math education )
Once you measure it then you can adjust your position size accoringly to fit the volatility of the stocks u are trading .
Now that you have read this text and understood the basics of postion sizing then you know why MR CHART taking 800 Postion for two different stocks with two different volatilty could not be correct and he refused to reply to my question .
Readers of this POST must think twice on momentum trading.. Momentum trading is just like EARNING REPORT,S TRADING,, FLAMMEABLE and on top of that they ACT MUCH MUCH LESS TECHNICALLY than a stock which is not in the news and moves based on the technical MERITS.
You are all techncial trader ,, Stay as one
Grey1
Lets say we have two stocks stock A , Stock B ,,
Stock A is in the NEWS( lets say the company finds tons of Gold in Peckham )
Stock B has a technical reason to move..
Lets say stock A moves $2 and stock B only moves $1 ? which one you should have been trading ? Which one would give you more profit?
ANSWER= IT DEPENDS ON YOUR POS SIZE ( .. If i buy 1000 shares of Stock B would give me exactly the same of profit as 500 shares of stock A) .. simple easy peasy
hence the statment more momentun is more profit = nonesence
Now lets me go further.
SO if they both return the same amount why should not we be trading the momentum then ?
Answers= First of all youare all Technical traders and as a technical trader you should be trading technical MOVES and NOT momentum moves but this factor is not all that important.
Now I take you to the concept of risk,,
if i tell you lets rub a bank and we make £1 million profit or alternatively we could use our intelligence and do BUSINESS with bank and over 12 month we would make exactly the same amount.. which one would you go for ?
Of course, you might decide to rub the bank as it is much faster and shorter period to gain the £1 million profit but what about the risk ?
IN WALL STREET , fund managers talk about RISK ,, RISK RISK RISK and as a result THEY PLAN A RISK ADJUSTED RETURN STRATEGY ..
We as a daytrader should do exactly the same . A RISK ADJUSTED PLAN ..
RISK in TA is defined by Volatility ... Volatility is the root of all evils.. VOLATILITY must be tamed for trading , if you cannot tame it then you must meausre it and hence design a trading plan to include the UNIT OF RISK PER UNIT OF RETURN PRIOR TO TAKING THE POSTIONS,
You have two choices,,
you can use HISTORICAL evidence of volatility ( ATR ) to meaure RISK ( you cannot correctly do that on momentum trading because NEWS HAS JUST HIT THE STOCK TO DAY AND A STOCK WHICH WAS ONLY MOVING FEW CENTS YESTERDAY IT IS MOVING $$$ TO DAY )
Or you can use a PROJECTERED Volatilty model such as CSV model ( compounded stochastic volatility ) to measure the inherent risk of the current moves with in specific time frame.
Either way YOU MUST meaure it objectively.. ,, It is dead simple and yuou need not to involve yourselvess with complicated stuffs. WEEEEEEEEE. ( Read about ATR on web .. simple enough stuff for any trader with even minimal of math education )
Once you measure it then you can adjust your position size accoringly to fit the volatility of the stocks u are trading .
Now that you have read this text and understood the basics of postion sizing then you know why MR CHART taking 800 Postion for two different stocks with two different volatilty could not be correct and he refused to reply to my question .
Readers of this POST must think twice on momentum trading.. Momentum trading is just like EARNING REPORT,S TRADING,, FLAMMEABLE and on top of that they ACT MUCH MUCH LESS TECHNICALLY than a stock which is not in the news and moves based on the technical MERITS.
You are all techncial trader ,, Stay as one
Grey1
Grey1
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Donot be stupid,,, ROFL ,, differnet account , I have had 50 people here including a T2W team to watch me trading LIVEEEEEEEEEEEEEEEE
Get a life ..opps get an EDGE you edge less loser .. post your yesterday trades I challenge you ? I bet you got none
Grey1
