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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: - who wrote (345)	6/9/1999 6:28:00 AM
From: Jim	Respond to of 18137

Steve, Great Post! As I read it, I saw that I was falling into these traps that you outlined. After some losing days during the past market decline, I find myself upping my trade amounts, holding losers "hoping" they will reverse and go back up, and selling winners quickly to take any profit - all the bad decisions that I KNOW are wrong. Your post was right on, and from now on I will follow the original rules that were making me money before the recent decline. P.S. Re: my questionaire to ztect. After numerous requests to appear on the Letterman show, write a book, and go on tour with this humour, I must tell you that I found this test on a another thread a while ago (author unknown), and just saved it for appropriate circumstances. If any one knows who made it up, please let me know so I can give them credit the next time I use it.

To: - who wrote (345)	6/9/1999 6:48:00 AM
From: Robert Brooks	Respond to of 18137

Steve-- Excellent post. I have been trading for about a year and have definitely met the dark side of trading. Made $150K during that time frame but lost $100K during one of these death spirals. Finally I backed off, STOPPED TRADING FOR A WHILE, and returned to the common sense and disciplined rules that good traders follow. It's good to know that excellent traders such as yourself have gone through periods like this. Thanks for the post. RB

To: - who wrote (345)	6/9/1999 6:54:00 AM
From: Don Pueblo	Respond to of 18137

Great post, Steve. I hope everyone reads it.

To: - who wrote (345)	6/9/1999 9:47:00 AM
From: Dave O.	Read Replies (1) \| Respond to of 18137

Steve, Another great post! Here's a real life case from USA Today: usatoday.com Dave

To: - who wrote (345)	6/9/1999 10:35:00 AM
From: Paul Viapiano	Read Replies (1) \| Respond to of 18137

Steve, Great article re: the dark side. When you say 1-5% of capital, do you mean that that number is the most you should allow yourself to lose on a trade or the total amount you should commit to the buying of one stock? Thanks, Paul

To: - who wrote (345)	6/9/1999 11:48:00 AM
From: SteveJerseyShore	Read Replies (2) \| Respond to of 18137

By your own account, you are talking about needing a small fortune to start daytrading.If you were to daytrade 200 shares @ 25, ($5,000),you need $100,000 (minimum)starting bankroll? Is their a cutoff point? Seems to me, trading stocks under $10-15 per share is looking for trouble.Too much volatility. <<<The statistics are overwhelmingly against you, if you violate the cardinal rules (generally, if you are risking more than 1-5% per trade, depending upon your trading style).>>> SjS

To: - who wrote (345)	6/9/1999 12:01:00 PM
From: RC Stein	Respond to of 18137

Wonderful post on 'the dark side', and way too true. Every time I hear myself say "Hell, I can't sell now, I'm too far down", I know I'm in big trouble, with more on the way. 8-)