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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Christopher who wrote (10402)	6/2/1999 12:20:00 AM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

Chris, a honest coin toss is a number of distrete events where it is a 50/50 change each toss. There is no limitations as to the size of the runs or largest number that may occur in X tosses. Where did you get example? Probabilities are tied to systems or plan. The reason you test is get them on your side. Hopefully better than 50/50.

To: Christopher who wrote (10402)	6/2/1999 12:21:00 AM
From: Christopher	Respond to of 12039

Here is the deal with money management. Judy, may be I was wrong in telling you not to trade a stock if your loss would be 5%. Here is what I do. I calculate my total loss if all my stops are hit. I try to keep my loss to 15% or less. here is the reason I keep it to 15% or less. If your loss is 15% then you need to make about 16.5% to get back the capital you started with. If your loss is 20% then you need to make about 25% profit to get back to your capital. If your loss is 50% then you need a 100% profit to get back your capital. Here is an example. If you start with 10k and lose 50% then you will be left with 5K. Now you need to make 100% to get back your original capital of 10k. Good trading, Christopher