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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: funk who wrote (3507)	1/23/1999 12:33:00 PM
From: Rick Faurot	Read Replies (3) \| Respond to of 7382

Funk, I had to go through months of up and down trading before one day I finally woke up to the fact that I had been breaking the number one rule of trading: keeping tight stops. I had a beautiful winning streak that made me a ton of money. I forgot the rules. It went to my head. I thought I could do no wrong. Then I got stomped. I lost my concentration and went into a losing streak. Took me a LONG time to get back on track. Now with tight stop discipline back in place my trading has improved. I NEVER let a trade go against me a tick without stopping out. No exceptions. By preserving capital, I stay in the game and give myself a chance to learn. If I learn enough, I can do well. RickF

To: funk who wrote (3507)	1/23/1999 12:46:00 PM
From: mr.mark	Read Replies (1) \| Respond to of 7382

funk, about a week ago a post of yours included a list of things that can upset a trader. #reply-7294402 one of the categories was "An under-developed or incomplete trading system or approach." would you elaborate on that? for instance, what do you consider to be a complete trading system or approach? any input is appreciated, as always. :) mark

To: funk who wrote (3507)	1/23/1999 4:27:00 PM
From: wmwmw	Read Replies (1) \| Respond to of 7382

<There is no such thing as a bad trade. What we all call bad trades are truly the most important trades of our careers.> I think a bad trade is more beneficial to a trader. A good trade gives you some money and some mental satisfaction. But a bad trade teaches you the most important things that will help you in the future. People often judge their trades by whether they make or lose money. But more important thing is your money comes from what you have learned from the market, not from luck. People learn more from losing trades than from winning trades. Other things I have noticed: Entry and exit points: People pay more attention to entry, to pick a stock that will rise to long, or that will drop to short. But the exit point is not less important, and really requires more market knowledge. Failure to choose a good exit point may make you far less profits or even make your winning trades into a losing one. Risk and reward ratio: Usually higher reward comes with higher risk. But there are many situations that higher rewards comes with lower risk. Also to different people this ratio is different, depending on different levels of market knowledge. Often people tend to enter a trade with higher profits potential but fail to recognize what level of risk it involves and whether it pays off. When considering higher profit potential and higher profit possibility, the later factor is always more important. Disciplines: Traders do need disciplines but different disciplines apply to people of different levels of market knowledge. People need disciplines because they need to protect themselves from something beyond their knowledge. Once they know those things they no longer need those disciplines in those situations.

To: funk who wrote (3507)	1/30/1999 5:26:00 AM
From: wily	Read Replies (1) \| Respond to of 7382

Recent trade: Yahoo buys GCTY for stock (no cash). Where did I read about this? Can't remember (how unusual). Anyway, next morning I'm watching EWBX because I know that it's an online community and maybe it will trade in sympathy with GCTY (the buyout premium was in excess of 50%). EWBX has been in a trading range for mucho weeks. Before the GCTY news it closed at $38 1/2, opened at $42. Savvy me, I waited and got it at 40 1/2, but only half of what I eventually wanted to get. Wasn't at all sure where this thing was going. Since it had been in a trading range for a while I should have felt somewhat insulated, but having been losing lately I actually felt quite vulnerable. The stock took a nice run up to 42 1/2, confirming my hunch that it was coming in to play. Then it took an irrational dive to $40, and I wondered what was going on but didn't quite panick, (the advantage of a good entry point). Sometime in the afternoon I checked the GCTY thread to see what might be there. Very quiet thread for a stock that just went through the roof. Someone left a few desultory comments about stocks that should respond favorably. BINGO! TGLO, XMCM, NTXY. So I put these in my minder and started monitoring their 5min charts. Around 2 in the afternoon they lit up, and I became hopeful. Sure enough my stock followed suit, but with not quite as much abandon. Broke out and ran to $46. Along the way I decided the thing would definitely gap and continue the run tomorrow, so I added the second half at 43 1/2. It closed near the high at $46. XMCM and TGLO both gained more on the day percentage-wise than EWBX. I was thinking that I should trade in my EWBX for TGLO which looked like the maddest of the bunch. Next day it was mixed indications pre-market on TGLO, XMCM and EWBX. Looked like EWBX was not going to gap. Started getting nervous. Put a pre-market ISLD sell in at $45 no takers. Opened down, moved down, I got out at 44 1/2. Few minutes later the stock lit up and was gone. High for the day around $55. How did I miss this? The buyout premium on GCTY was something better than 50%. I figured that with the morning gap on TGLO, most of this premium was already factored in, and although EWBX hadn't gained as much as TGLO, maybe the market wasn't going to give it as much of a premium. I figured these stocks had made their runs and it was time to bail. I've been used to stocks gapping in the morning if they are going to make a run during the day. I was thrown by the opening sell-off. Still have a thing or two to learn. wily who's been leaving a lot of money on the table lately.