I was concentrating so hard on my trading today, that I didn't even realize that I was responding to more than one person on this board ! I though Ral was making all the posts. I'm glad, and surprised to see the activity here.
What is my style? And Peter asks, "why is the $Secret to my $Success"? Who knows. Maybe its just luck. However, for the last two weeks my trading has been doing much better. My broker is surprised at how I've been doing. My timing has always been noteworthy, but recently its been noteworthy and profitable. I hope it keeps up.
There are many variables involved, so I'm not sure I could completely articulate what I'm doing different. I'll write some rules that I Sometimes follow. Experience is probably the best teacher. If you lose enough money you learn what NOT to do- or do you?
Rule: Do smaller positions rather than large. When things are going great, remember not to risk all your money on one shot or you'll blow all your profits.
Rule: When you try a couple trades and lose money, stay out of the market. This is so important, epecially if you just lost some. Sometimes you are just off- all your assumptions are wrong.
Rule: Know what is going on. Read the morning news. Know how the foreign markets are doing, etc.
RULE: Short/go long the wave. First, know the tide (the sentiment of the entire market, along with general direction). If the tide is going down, tend to be short. If an unusually large wave comes up along the beach, that is the time to go short to minimize risk. Don't try to catch a small wave unless you are sure the tide is falling really fast.
Rule: emotions are tough. They will make you sell too early because you don't want to risk, 3, 4 or even up to 10 pts. However, if you sell too fast, you will get knocked out to fast.
RULE: Related to the wave theory (or is it the same?). Short in the heat of a wave as long as it looks like it the market is trading in a range.
Rule: when the market gets crazy, stay out unless you can use at least a ten point stop.
Rule: follow the techs for now. They will give you an idea of how the market sentiment is concerning asia, etc. They have a lot of exposure and those investors will be most in tune with what is going on (last famous words?)
I hope these rules (really thoughts) on trading help.
Rule note: don't be surprised if I don't often don't follow these "rules". I'm always experimenting myself. |
