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 : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Leland Charon who wrote (44176)	6/1/1998 12:19:00 AM
From: Patrick Slevin	Respond to of 58727

I did not look at his site but aside from being the dark about what "handles" are, I understand his logic. Normally I would have reacted in similar fashion but because I was ahead about 8 points on my trade I closed out all but 1/4 of the trade. Logic is, the remainder of the position would have to go against me 3 x 8 = 24 full S&P points before I would have an adverse affect with regard to whether or not the trade was profitable. His point about 1987 is precisely why I left something on the table with little risk. The potential for problems over any given weekend these days lends me the impression that Friday's last hour is not whacky at all, rather it is a predictable hour where longs would naturally back off in the face of an uncertain weekend. Unless the day had been down throughout, the likelihood was for a late selloff. His rationale, other than the fact that he does not take into account market psychology, is reasonable. He is taking advantage of spikes and is wary of late hour trading. In this particular case, he may have missed an opportunity because his system does not take in external events....always a problem with strictly following a system. News-driven events have the potential to create swings unforeseeable by systems. I'll check out the site he has in a moment.

To: Leland Charon who wrote (44176)	6/1/1998 1:09:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

I see he violates one of his own key rules from his site.. None of which is of any value whatsoever unless you can manage your money. I have two simple rules. Love your losses and be a pig. That's it. By "love your losses," I mean take 'em and take 'em fast, without exception, and be thankful for them ...because if you are taking them, you're betting smart. And you're winning. You can take 5 little losses and get one big win and be ahead. Which brings me to the pig rule. If you don't let your wins run, you'll have a hard time keeping afloat. THIS IS PROBABLY THE GREATEST VALUE OF EWAVE. It gives you the ability to hang on to something close to the maximum. It lets you be a real pig, without getting slaughtered, staying between (and out of) the ditches. ...which of course makes him more of a discretionary trader. So if you subscribe I guess it would make you wonder if he followed his own advice. Would I subscribe? Perhaps, if I wanted another opinion. It might be worth your while to use him as a sounding board to bounce your own thoughts off. Some things he said puzzle me, he referred to getting "stopped out by the Globex thieves...". Perhaps LFG allows him to have stops on Globex but my broker does not. I did not think stops were allowed on Globex. Anyway, I'm not an E-Wave fan or detractor. Although the gist of what he says makes sense to me I don't employ systems I don't understand. That should be a general rule for anyone. He took off the trade on Friday's close for example. Perhaps there is a rule for that in E-Wave. If I did not know that one way or the other I may be left out in the cold and wondering why. Other than that, if you wanted to give it a test drive it seems okay. Let me know how you make out if you try it.