Margin - the way to double your profits or your LOSSES!
When you make the decision to go on margin. you double returns and risk. You have to adjust your stops and targets. The normal 10%, get out now, stoploss needs to be set at 5%.
Always think %, put things in the proper perspective.
Some even before they learn the basics start to produce their version of the "holy grail". System development should be logical. You should have a reason for each included element. You should be able to explain to yourself why the elements were chosen and know the effect of any change made to the results. Too many look at a handful of stocks in testing, you have to look at 10s or 100s of stocks, all shapes and sizes, to get results you can trust. You have to know what works with ranging stocks, what works with trending stocks. What works with stable stocks, what works with volatile stocks.
Often I get questions, it tells a lot about the person asking them. It shows most often that the person has not done his homework. In this day and time, thanks to Bill gates and others, we can buy a $800 computer plug it in and up comes the world in living color. We can obtain more information than we can assimulate. More time is needed to be spent reading and thinking. In the TA- topics there are tons of good advice. You will find suggested books, methods, systems, and etc. Your best "holy grail" has probally been posted.
Remember you are accountable, not anyone else for what you do in the market. |
