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 : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TheStockStalker who wrote (17367)	7/12/2005 9:48:16 AM
From: Eric P	Respond to of 18137

Oz, Give me some time to type you an adequate response to this question. This weekend maybe. I have been "running money" and have thoughts and ideas about it. Just a reminder. :-) I'm looking forward to hearing your thoughts. -Eric

To: TheStockStalker who wrote (17367)	8/15/2005 8:21:02 PM
From: TheStockStalker	Read Replies (1) \| Respond to of 18137

Does anyone else on this thread currently run a hedge fund? If so, what has been your experience? Eric and all, I am sorry it had taken me just long to prepare this posting. In case you have not already heard I had sustained a serious injury to my right hand and it gets in the way of my typing. I am using software to dictate this message and will now give an answer. A few years ago I was asked if I wanted to run some money. Running money is basically when you are trading someone else's money and it's usually in the form of hedge fund. I thought it would be a good opportunity to further refine my ability to trade large amounts of capital and I took it. Usually when you run a fund the payout is about 20% of the profits and in some cases a management fee. So I basically split that with the capital management firm. The fact is I could be trading smaller amounts of money and keep all the profits. This will probably have made me more money in the interim. But because I am trading larger amounts of money, I have to put so much more thought into the risk management portion of what I do, while still being totally aggressive when the intermediate term trends present themselves. It is by far the most challenging effort I have ever faced in my trading and in my life. I absolutely love it. There are many perks to running money. I tell my broker I need another computer and I get. If I need more monitors I get them. This has allowed me to the able to use my full creativity in various forms of market breath analysis and indicator development. It simply would not be economically feasible to do so if I was just trading and thinking small. My primary edge in trading has usually been my creative approach to how I trade. But putting creative ideas to work in this business can be very expensive. The order flow I generate insures that I can put my ideas to work and that to me is important. My biggest discovery has been the development of an indicator that I call the Ozzielator (my nickname being Oz of course). It is basically a breadth derived indicator that is used as an oscillator and compared to index pricing with analysis done in the traditional positive and negative divergences. I do not use indicators on price ever. Though I think they can be of help to people, I tend to see them as corrective lenses for the chart reading impaired (cannot see the patterns). Since I see charts clearly I don't want to use them just as I would not use glasses if everything looked clear already. But my indicator is not a reflection of price but a reflection of breadth so that when I do comparison between the two I am actually comparing two different things and that has much more value. I moderate a chat room offered through my web site to larger traders and smaller hedge fund and they get seven time frames of this analysis streamed out to them in real time. This way they can do their own analysis of the patterns in addition to the analysis that I provide a detail every day. Another thing that I am adding soon he is an advanced decline line of the New York Stock Exchange that streamed out to me in real time and does not have any of the interest rate sensitive issues inside of it (closed end muni funds). I will also run an Ozzielator on it. These are things I would have never been able to do unless I took the path that I took. Though these things will always be available to me now regardless of what path I take in the future. I do trade from an office in my house though!!!! Another reason I like trading a hedge fund is because all of the other unexpected opportunities that seem to pop-up all the time. I have opportunities to help other hedge fund's raise capital and I do so with hopes of a percentage of what I help them raise. I hear about real estate deals and other deals. I'm still new into all of these things but I have found that as long as I make myself available to the information the sky is the limit as far as opportunities. I do see the day where I will just trade my own money again and enjoy it just like many do. But for now I am still getting a kick out of messing with all these new things. Good Trading to you all, Oz