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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Harvey who wrote (1334)	10/30/1998 8:35:00 AM
From: TraderAlan	Read Replies (2) \| Respond to of 1729

Doc, Linda Raschke is my favorite trader and technician. If anyone wants to read some of her stuff, I'd be glad to point them to free web resources. <unwillingness to take small losses and get out when a trade goes wrong> <I have reduced my trading dramatically> Two real good points. The current trading literature (on-line and off-line) doesn't emphasize risk management as much as it should. Its a lot easier to sell greed to hungry, new traders than the pain of small losses. Without a doubt, I'm still in this game because I'm much smarter with my losses than my gains. Traders educational material also encourages overtrading (high transaction costs) since much of it is sponsored by the broker/dealers themselves, who gain through heavy scalping strategies by their clients. (disclaimer: I don't blame the brokers for trying to earn a living and am currently writing for several of them). Here's one sobering statement, -if- you believe it: many of the 90% to 95% of aspiring day traders who fail in EDT environments may have succeeded by sticking with lower cost, less trade-intensive interfaces until they completely mastered them. There's a lot to be said for 3-5 day position trades of a few hundred shares of a utility or local phone co off a daily chart. You learn execution and make decisions based on the technical analysis but everything moves in slow-motion, you don't get drowned by quick market turns. When you have that mastered completely, the 1-min and 5-min environment isn't as hard to handle. Alan