Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (8071)	3/23/2000 11:38:00 AM
From: LPS5	Read Replies (1) \| Respond to of 12617

Yes. And message board/chat room banter (the pop fad, bubble gum "follow me" culture) has it that market makers are vampires (not figuratively, but actually: they wear black capes, sleep in coffins, and drink human blood); do 100mph in school zones, cackling gleefully the whole time; and wear skinny leather ties, parachute pants, and 6 inch thick flourescent vinyl belts. Still. LPS5

To: TFF who wrote (8071)	3/31/2000 8:00:00 AM
From: Robert Graham	Respond to of 12617

With regards to your comment on traders making 30 trades a day, I find that four trades a day is more than adequate for me. Some days a little more, and other days can actually be less from time to time. Thirty trades a day? So someone is willing to put their stake at risk thirty times a day for what? $150 anticipated profit a pop? And how much are they actually risking? I wonder if they actually use stops? If no stops, then actual risk is probably much greater than it looks. So lets say a conservative 1 point potential catastrophic risk. Correct me if I am wrong here. So one point times 1,000 shares is $1,000. So the risk to reward is a backwards 10:1. And this is done 30 times a day. I wonder how many actually do bother to sit back and figure this out? Even if it was 1/2 point catastrophic potential risk, we are still talking about a backwards 5:1 risk to potential profit. The only way this can work is there has to be an extremely high rate of accuracy, virtually a "guarenteed" profit, a dream but never a reality. I wonder how many look at their equity curve and do the calculations to see if their performance validates this accuracy rate over a period of time? I suspect many "successful" day traders have significant drawdowns due to their need for action overriding common sense in the case of overtrading, and when the market is not working for their approach they trade anyway until their losses get their attention. And for the addictive personality types who are attracted to this method of trading, let me just say they will not be around for long. Just some thoughts. Comments welcome! :-) Bob Graham