A questions about "How much to risk on a single trade"
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I'm confused. How can a guy who works for a prop shop be quoting bankrupts and still feel like he's come out on top. It's a crazy world.
trader_dante
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Dude, the method is not contentious. It's just me. Everytime I post, new_trader is trying to make me look like a c*nt. But tonight he has the evening off so its Paul71s turn.
trader_dante
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I'm confused. How can a guy who works for a prop shop be quoting bankrupts and still feel like he's come out on top. It's a crazy world.
Yeah tell me about it. I have no idea how I manage to do so well with Niederhoffer and Livermore as my idols.
Life is strange.
Tom,
Anyone knows Vic was a bankrupt. You made a bad choice of reference, i understand your reference to Vic, but still, it was a bad call, all things said and done. All you have to do is admit it.
People make mistakes, we get the trade wrong, are you any different?
Surely you are not 'super trader'? (you've already shown you are prone to mistakes)
trader_dante
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Paul,
I didn't say that we should all follow Vic, I simply said that Vic showed how running a position and adding to it produced an incredible return in a single trade. How was that a bad choice of reference?
I don't have a problem admitting to mistakes. If I did, I wouldn't have made half the posts on here that I have done.
I have just started his education of a speculator book and didn't realise he was now bancrupt. In fact I have been saving it for some time to read and was looking forward to it. My question would be - Did pyramid trading cause his bancrupty? TBH even if it did I doubt it wouldn't change my opinion on the method.
trader_dante
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north5, I finished it a couple of weeks back. It's a great book. Happy reading
Apparently leverage and margin calls were at the heart of his most recent bankruptcy.
In 2007, the FT quoted Nassim Taleb as saying that "Mr Niederhoffer is his own worst enemy. One of the most brilliant men I have ever met, and he wastes his time selling options - something nobody can have any skill in - and it leaves him vulnerable to blowing up"
Kin'ell, Tom.
Like the calls you've closed out half in the middle of the night, and let the rest run for a profit, when you were trading a £/pt?
Smells a bit fishy to me.
trader_dante
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Yes, funny that. Sometimes I close half in the middle of the night and let a £1/pt run run...and sometimes I add 7 times, taking nothing off and running a £35/pt position before closing out everything right near the top e.g. Wheat last year on MMT thread...
...what can I say? Sometimes you need to bank some profit, sometimes you need to play the trend. Depends on the TF and your outlook I guess.
Flexibility.
The hallmark of every great trader
I do like what I know of the guy's style - I guess at his level though the exit becomes so important that he can't just cut and run when it moves against him like the rest of us.
Personally I like to try and build a position from a low reversal (I like to try and catch falling daggers ). From there I feel I can build a position if I get it right and pyramid up as my confidence grows in the move.
You are right though - it takes flexibility to build a position (or exit it), as you need to read the market as it develops and not just try and call a single trade but adjust to dynamics as they develop. I can be hard to see where a plan is in that - but there is one that moves through gears - rather than being a single static entry/exit .
Personally I like to try and build a position from a low reversal (I like to try and catch falling daggers
). From there I feel I can build a position if I get it right and pyramid up as my confidence grows in the move. You are right though - it takes flexibility to build a position (or exit it), as you need to read the market as it develops and not just try and call a single trade but adjust to dynamics as they develop. I can be hard to see where a plan is in that - but there is one that moves through gears - rather than being a single static entry/exit .
trader_dante
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I do like what I know of the guy's style - I guess at his level though the exit becomes so important that he can't just cut and run when it moves against him like the rest of us.
Personally I like to try and build a position from a low reversal (I like to try and catch falling daggers
You are right though - it takes flexibility to build a position (or exit it), as you need to read the market as it develops and not just try and call a single trade but adjust to dynamics as they develop. I can be hard to see where a plan is in that - but there is one that moves through gears - rather than being a single static entry/exit .
north5, as the first chapter will become clear "The old Trader and the Yen" he is somewhat of a maverick and usually going heavily against the trend. But still, he is a clever guy. A lot of his work is statistical but nonetheless the book is an enjoyable read with some fascinating insights. I very much enjoyed the last page. F'ing hilarious!!!
Yes, funny that. Sometimes I close half in the middle of the night and let the rest run...and sometimes I add 7 times, taking nothing off and close out everything right near the top e.g. Wheat last year on MMT thread...
...what can I say? Sometimes you need to bank some profit, sometimes you need to play the trend. Depends on the TF and your outlook I guess.
Flexibility.
The hallmark of every great trader
So you're a 24 hr trader? What happened to your theory about hourlies? I guess you misjudged that one as well.
I have basically read the first 2 chapters. I liked that first chapter as that is me basically - but only for my initial (small) entry as I don't have the balls to go heavily against a trend. However I get it more than I should which I think is because of what I look for and it then gives me an edge by having some open profit if it does reverse to allow a pyramid which does give the patience and confidence needed to stay with it when others may bail out.
trader_dante
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trader_dante
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lol north5, it's me too. Always heavily against the trend.
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trader_dante
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Indeed...lol
This post of mine just about sums it up: http://www.trade2win.com/boards/544676-post97.html
Arrows marked in each market on the day of the post...always trying to catch a falling knife LOL
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I need a drink. Tom, you put more effort in than me, and i thought intraday was more time consuming. Now, the realisation of leverage and time is really telling. Good luck with the hourlies.
trader_dante
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It's the trader that makes the business all consuming not the strategy or the timeframe.
