Irby,
Good post and yet I don't think there is anyway you could capture in a few paragraphs exactly what makes up good trading. Forget the idea of a two sided event...ie..did you buy zyx at the bottom..look at each transaction in its ownright...buy side strategy and sell side..forget what you paid for something once you have bot it. Once you've set your limits/stops (which are critical) you need to execute, that is perform well in a very active, moving market.
"Your skill in selling into strength, or buying into weakness."
There is a tremendous amount in what comprises skill. ..re:". If the stock is falling through the floor or going through the roof,you probably won't get filled!.....That's why it's moving so fast!...no resistance".
I agree its difficult, but thats why trading isnt for everyone. You have to do the best, perform well, in the most tenuous environment.
Your focus on #1 is absolutely correct yet i would modify it as such. Sell into strength and and buy on softness but also understand that strong gets stronger and weak gets weaker, so know that you sell something, it very likely will move higher, and you buy something on weakness, you very likely might see it lower. Also, if you own something and its tanking, you'd better know how you will exit the stock you dont stand around like a deer in headlights. You buy something on weakness and it starts really pulling back, you had better know how you are going to get out well.
There are two components two good trading:1. the selection and timing and 2. the execution. Some are wonderful at 1 and bad at two. Some look for help from others in 1 and take 2 on all themselves. Some do it the other way.
Stop orders to limit losses are good to protect yourself from losses (keep away from whole numbers as thats where the average investor places them and it accelerates through them).
There is also a lot quirks and offbeat skills/tips you can pick up. one, for instance, I'll use on last few days of option expiration, a few issues might involve selling options instead of the stock in a bad market for stock. Sometimes the bids on options might be better than stock andyou might do better with the option than stock....ie...bid tanks on abcd, sell some in money calls, because on RAES with 10 lot auto execute can get 'SOES' like on the options which might be an 1/8, 1/4 or 1/16 better. Maybe I use this once a month, a few trades, but it adds up.
If anyone's interested in specifics regarding execution systems or scenarios, present them,and we can discuss them.
The Trading Desk Thread is good for this also...http://www.exchange2000.com/~wsapi/investor/Subject-15612
As I said, there is so much to trading, trading skills, tips, etc. Anyone interested in this kind of dialogue, strongly consider joining our chat session this sunday on our chatsite..http://www.yamner.com/newuser.html This SUnday, 6pm, est.
Ross Ditlove from MBtrading will be joining me as guest speaker.
Regards,
Steve@yamner.com |
