Salty Gibbon
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wwatson
I am essentially a NASDAQ day trader but I have often left positions open for a longer period.
I never feel comfortable doing this especially with NASDAQ stocks because of the potential for disaster.
I have not studied your website closely yet but do you mind if I ask a couple of questions or maybe 4 ?
1. What is your average position size ?
2. What approximate size of stop do you generally use ?
3. How do you feel about a long strategy ( you do not short stocks ) when the market is diving ?
4. Do you trade NASDAQ stocks at all ?
Cheers
Salty
I am essentially a NASDAQ day trader but I have often left positions open for a longer period.
I never feel comfortable doing this especially with NASDAQ stocks because of the potential for disaster.
I have not studied your website closely yet but do you mind if I ask a couple of questions or maybe 4 ?
1. What is your average position size ?
2. What approximate size of stop do you generally use ?
3. How do you feel about a long strategy ( you do not short stocks ) when the market is diving ?
4. Do you trade NASDAQ stocks at all ?
Cheers
Salty
Hi mojo, I did have a look at the ramp software a while back and remember finding it a little awkward to use, being impatient I discarded it.
The chart you have posted is a clear setup if you are into playing high breakout's I have found as my trading has progressed this kind of trade makes me feel uncomfortable.
How are you finding your success with this program.
Kindest regards John
The chart you have posted is a clear setup if you are into playing high breakout's I have found as my trading has progressed this kind of trade makes me feel uncomfortable.
How are you finding your success with this program.
Kindest regards John
Hi salty gibbon,
1. I invest the same $ amount in each stock, and look to have enough capital left to allow usually for aprox ten positions to be open. For example if you have $20,000 you would invest $2000 in each position.
2. I look for a level close to my entry where the stock is being accumulated time and again, I place by stops a fair distance below this level as I know from experience how much room needs to be given to a position.
3. A bear market may dull my performance but not do a degree that would have me hang myself.
I keep a watch list of stocks that seem to be trading a little high, a bear market can help bring these positions down slightly so that I can gain an entry.
4. I trade NASDAQ and NYSE.
Let the show go on!!
1. I invest the same $ amount in each stock, and look to have enough capital left to allow usually for aprox ten positions to be open. For example if you have $20,000 you would invest $2000 in each position.
2. I look for a level close to my entry where the stock is being accumulated time and again, I place by stops a fair distance below this level as I know from experience how much room needs to be given to a position.
3. A bear market may dull my performance but not do a degree that would have me hang myself.
I keep a watch list of stocks that seem to be trading a little high, a bear market can help bring these positions down slightly so that I can gain an entry.
4. I trade NASDAQ and NYSE.
Let the show go on!!
My method for trading stocks is based on scans from the Ramp program. I usually scan for stocks that are in a long term uptrend and have pulled back to the trend line. I then take those stocks and scan for those that have pulled back to a .38 or .62 fib point. I set pretty tight stops in this way. My swing trades are from 1 day to 3 or 4 weeks in duration depending on the success of the trade.
I have found Ramp pretty easy to use and have done quite well with it for my swing trades. I am thinking about starting a journal soon also as I enjoy sharing what I'm doing and find the feedback useful. Good trading.
Mojo
I have found Ramp pretty easy to use and have done quite well with it for my swing trades. I am thinking about starting a journal soon also as I enjoy sharing what I'm doing and find the feedback useful. Good trading.
Mojo
Salty Gibbon
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If your investment is only US$ 2000 per position, I assume that you would therefore hold 100 shares of a US$20 stock, for example or about 7 shares in Google.
Correct ?
So, in order to hold 10 simultaneous positions, your size per trade is necessarily small.
Do you not feel that you are restricting your profit potential by holding a large number of small positions ?
Correct ?
So, in order to hold 10 simultaneous positions, your size per trade is necessarily small.
Do you not feel that you are restricting your profit potential by holding a large number of small positions ?
Holding a large number of small positions of stocks may be a good way to diversity risk. But if the trader is buying 10 simultaneous positions at the same time, it seems he may have a problem with the ability of picking stocks. 3 to 5 stocks may be better.
This account size was just an example, You can't not get filled with 7 shares on any stock so the minimum trade size is 100, On the RARE occasion that I do have a stock over $20 I use margin.
I do not constantly hold ten positions but this has been the case before.
Holding a smaller number of shares in a higher priced stock is often similar to holding a larger number of shares in lesser priced stock as the $ amount move is relative to the price of the stock.
As I have progressed with this method I have found a better maximum number of open position for me in terms of comfort and a more focused portfolio is no more than 5-6.
I do not constantly hold ten positions but this has been the case before.
Holding a smaller number of shares in a higher priced stock is often similar to holding a larger number of shares in lesser priced stock as the $ amount move is relative to the price of the stock.
As I have progressed with this method I have found a better maximum number of open position for me in terms of comfort and a more focused portfolio is no more than 5-6.
Salty Gibbon
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Thanks for the explanation wwatson.
I have often wondered how many people use margin and to what extent.
eg. how many people use their 4:1 IB margin at all and for those who do use it, how far do they extend themselves ?
Personally I don't like to use it much at all and I certainly wouldn't want to hold trades for a number of days which were based on borrowed money.
I day trade and I usually only do 1 or 2 ( at the most ) trades simultaneously.
Due to being a naturally impatient person I necessarily like the trades to be short and hopefully sweet.
So I like to trade stocks that move relatively quickly ( RIMM is a good example ) so that I can notch up a nice profit in double quick time and not have my money at risk for any longer than is necessary.
I have often wondered how many people use margin and to what extent.
eg. how many people use their 4:1 IB margin at all and for those who do use it, how far do they extend themselves ?
Personally I don't like to use it much at all and I certainly wouldn't want to hold trades for a number of days which were based on borrowed money.
I day trade and I usually only do 1 or 2 ( at the most ) trades simultaneously.
Due to being a naturally impatient person I necessarily like the trades to be short and hopefully sweet.
So I like to trade stocks that move relatively quickly ( RIMM is a good example ) so that I can notch up a nice profit in double quick time and not have my money at risk for any longer than is necessary.
What's your style
Salty what trade setups do you use? Are you a breakout trader, reversal player, trend continuation trader?
I used to day trade but quickly realised it wasn't for me as I need plenty of time and no pressure when deciding on a position.
What is your performance like daytrading, are you profitable at the end of each day or at the end of a week?
Thank's
Salty what trade setups do you use? Are you a breakout trader, reversal player, trend continuation trader?
I used to day trade but quickly realised it wasn't for me as I need plenty of time and no pressure when deciding on a position.
What is your performance like daytrading, are you profitable at the end of each day or at the end of a week?
Thank's
Salty Gibbon
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I like to play reversals and also trend continuations.
I tend to use 3, 4 and 5 minute charts most of the time.
When I use 1 minute charts I get pretty flustered - something I need to work on for the first hour of trading.
Without giving too many figures that people can jump on and ridicule ( as they tend to do on T2W ), I can say that my performance is very good ( a very high percentage of winners ) with an average R/R around 2.5.
I posted on CountryKen's thread earlier on to answer a comment from a guy called OpenMind.
This is also relevant and you may wish to take a look.
Salty
I tend to use 3, 4 and 5 minute charts most of the time.
When I use 1 minute charts I get pretty flustered - something I need to work on for the first hour of trading.
Without giving too many figures that people can jump on and ridicule ( as they tend to do on T2W ), I can say that my performance is very good ( a very high percentage of winners ) with an average R/R around 2.5.
I posted on CountryKen's thread earlier on to answer a comment from a guy called OpenMind.
This is also relevant and you may wish to take a look.
Salty
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Salty Gibbon
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Yes I agree and it is important to find your own successfully unique way of approaching the markets.
This must constitute that thing called an "edge" I think.
Salty Gibbon
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Soc
All I know is that I have put in thousands of hours to find my own successful way to trade.
Nobody can possibly trade like me so I am almost certainly unique.
As I am successful I would call that my edge.
Definition of "edge" is different for different people I feel and it surely can have many different meanings to many different people.
I know you are a deeper thinker than me but I do like to keep things nice and simple.
That way I can distinguish the wood from the trees.
All I know is that I have put in thousands of hours to find my own successful way to trade.
Nobody can possibly trade like me so I am almost certainly unique.
As I am successful I would call that my edge.
Definition of "edge" is different for different people I feel and it surely can have many different meanings to many different people.
I know you are a deeper thinker than me but I do like to keep things nice and simple.
That way I can distinguish the wood from the trees.
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Salty Gibbon
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No Mr Watson, you are mistaken.
I am in fact a white gibbon, who happens to resemble a dog.
Yes, I do wear spectacles but I change them for contact lenses when trading.
Although I do try my hardest to keep my emotions in check when trading, there are times when over-excitement does occur and in these instances spectacles would get steamed up, preventing me from viewing my charts.
Hope this clears up any confusion.
Salty
I am in fact a white gibbon, who happens to resemble a dog.
Yes, I do wear spectacles but I change them for contact lenses when trading.
Although I do try my hardest to keep my emotions in check when trading, there are times when over-excitement does occur and in these instances spectacles would get steamed up, preventing me from viewing my charts.
Hope this clears up any confusion.
Salty
