SFMc01
358 posts
msg #155366
- Ignore SFMc01 |
1/19/2021 5:57:03 PM
Larry Connors and others have rules that they try never to ignore, One that I see that Larry uses is: Never go long if the stock is below MA(200). The purpose of this thread is to share and discuss rules that we may have? Who's first?
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graftonian
1,089 posts
msg #155368
- Ignore graftonian
modified |
1/19/2021 9:03:32 PM
Don't tug on supermans cape, don't piss into the wind.
As for trading, i've broken every rule I ever set, and invariably paid for the indiscretion. I have become a trend follower and putting a black and white rule on the grey cloud of trend just doesn't seem right.
Graf
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Another thing:
Larry Conners, in one variant, considered 7 variables, the sym that met most was the winner. If we had 99 variables, none could be considered a rule.
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VirginTrader
73 posts
msg #155373
- Ignore VirginTrader |
1/20/2021 8:26:18 AM
I "try" not to play earnings. I break em' more than I follow it.
NFLX jan 29 550C $4.20
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miketranz
956 posts
msg #155374
- Ignore miketranz |
1/20/2021 8:26:22 AM
All you have to know are two numbers.1)Your entry price 2) Your exit price.Never hold a position below your entry price.
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SFMc01
358 posts
msg #155381
- Ignore SFMc01 |
1/20/2021 5:01:50 PM
miketranz: Respectfully, I'm not sure I understand. Are you saying never hold a stock that is "under water.."
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novacane32000
331 posts
msg #155383
- Ignore novacane32000
modified |
1/20/2021 7:28:23 PM
Set a stop below your entry and get out if it is hit. Bet maybe .5% of your account. Conversely, set an exit and get out when it is hit.
If Miketranz has mastered getting out just below his entry point then he is a better trader than 99% out there. Peter Brandt who I follow on Twitter has mastered it and does about 42% a year on his account.
The big winners rarely come back to the entry point.
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graftonian
1,089 posts
msg #155384
- Ignore graftonian
modified |
1/20/2021 8:12:37 PM
@miket
All you have to know are two numbers.1)Your entry price 2) Your exit price. Never hold a position below your entry price.
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This looks like a great backtest project. The exit is set, how do determine entry? At the rate I'm learning
Edgerater, I'll never make the backtest happen. Ed S., are you listening
Graf
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miketranz
956 posts
msg #155385
- Ignore miketranz |
1/20/2021 8:53:14 PM
Gentleman,let me explain what it is I do.When I place a trade,if price does not move immediately in my intended direction,I'm gone.There's no reason for me to be there,except to lose money.I've found this out the hard way through years of experience.I don't use hard stops,strictly reactionary mental stops.It takes a high degree of discipline and mental focus to execute.Do I always get out exactly at my breakeven? Of course not,maybe I'll give up a .10 depending on where the bid is.This is basically a day trading strategy.On a swing or long term trade,I would use a slightly different approach.Learning to take a small loss,preservation of capitol is one of the determining factors of success in this business.Great post Steve.Best,Miketranz...
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marine2
963 posts
msg #155388
- Ignore marine2 |
1/20/2021 10:25:31 PM
MikeT, I’m like you in getting out as soon as my trade drops. But, I get out when my initial entry price drops 2-2.5%. Since I am a short to mid term trader this rule works for me. Since I’m a Trend trader this makes sense.
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redversa721
157 posts
msg #155389
- Ignore redversa721
modified |
1/21/2021 7:05:35 AM
Over the past few years , every Big mistake takes on following shade
1. everything is chugging on smoothly, I am bored, read about a stock and think, let me try a small position and see what happens
2. then when trade goes against me, in my mind I feel I can turn this trade profitable and keep piling in [extension of 1]
3. Unable to stick to rules set in my head.
4. Try a little harder, maybe squeeze a couple points from the trade which ends up in a huge loss
[ex, was going for lunch and entry was 110'ish and exit was at 112. I cancelled my exit signal and changed it to 112.5. When I came back, the stock had crossed over 112, did not hit 112.5 and then dropped down to 106. It was a 1400 dollar loss that day.
5. I want to win against this one stock. even if at the back of my head, I know I am wrong. I just want to beat that stock. [Soooooo Stupid, it's just tough. I now set exit signals and do not look at winning every stock]. I believe the mentality is that 'hey my strategy is right and this stock will eventually turn around since accepting the loss means accepting my strategy can have losses as well'
6. Utilization of unused funds - This seems to be another bane. if 40% of cash is used, I keep looking to invest the remaining 60% and this leads to some loosening of my rules . Literally every time I loosened my rules, I have lost at least 5 digits. It has taken me 4-5 years and lots of losses to get it into my head. having underutilized funds is better than losing that amount.
7. Take my profits out - The past few months, I have actually been moving my profits out and going out and enjoying the small things in life. get a nice ice cream or a good burger and enjoy the fruits of my labor.
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