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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Stoxx who wrote (2710)	1/22/1999 5:24:00 PM
From: Bert Zed	Read Replies (2) \| Respond to of 39683

You were right about MUCP: timely.com It gave some more up before its pop today. Looks like it could continue with more of the same next week. Thanks for the advice. bert.

To: Dr. Stoxx who wrote (2710)	1/23/1999 12:02:00 PM
From: Dale Wingo	Read Replies (1) \| Respond to of 39683

Ok, I've got both of you trumped! I haven't been around lately due to the fact that the day after Thanksgiving I missed a step while carrying my older dog down a staircase to go for a walk and broke both the tib and fib of my right leg just above the ankle. Top That! Ok, I will. I have an "external fixator" bolted (literally!) onto my leg to hold my foot on. After 6 weeks the doc x-rayed it and said that a bolt on the damned thing had worked loose and the leg needed to be reset. OUCH! That was 2 weeks ago and I'm trying to work my way off of pain meds again... The worst part is that this is a 6 - 12 month ordeal before I can walk again. Now for some business: TC, I just got a book that I read about in thestreet.com. Below are some snippets of the review: -----Begin snippet----------- In short, Tharp tells us, the Holy Grail is not a system. It is 100% personal psychology. Success comes in finding a trading system or methodology that is right for you. What makes this book truly worthwhile is that Tharp really does understand the mechanics of trading. Most traders spend virtually all of their energy looking for a good entry system. Tharp argues that entries are just 10% of a successful trading method. To prove it, he and trader Tom Basso concocted a simple, random-entry trading system, cited in Chapter 8, that worked with coin flips: We determined the volatility of the market by a 10-day exponential moving average of the average true range. Our initial stop was three times that volatility reading. Once entry occurred by a coin flip, the same three-times-volatility stop was trailed from the close. However, the stop could only move in our favor. Thus, the stop moved closer whenever the markets moved in our favor or whenever volatility shrank. We also used a 1% risk model for our position-sizing system. ... We ran it on 10 markets. And it was always, in each market, either long or short depending upon a coin flip. ... It made money 100% of the time when a simple 1% risk money management system was added. ... The system had a (trade success) reliability of 38%, which is about average for a trend-following system. If that alone isn't worth $29.95, read Chapters 9 and 10 on exits. People just seem to want to ignore exits -- perhaps because they cannot control the market on the exit. Yet for those who want control, exits do control two important variables -- whether or not you'll make a profit and how much profit you will make." Exits are one of two keys to developing a successful system. The other is position-sizing covered in Chapter 12, which is one of the most elegant summaries of the topic in trading literature. -----End snippet----------- I've just started reading it but thought you might like it as well.. Van K. Tharp, Trade Your Way to Financial Freedom McGraw-Hill, 1999. 343 pages. amazon.com Dale