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I take no offense to this as it's coming from someone whose entire retirement plan is based around this POS company.
That's an ignorant statement. How is that what I want to hear? What I want is for them to lay out their plan for us to SEE how they're going to do it without having a RS.
I also want to hear your take on how they avoid it rather than saying "it's not going to happen".
Right...no reverse split YET...not no reverse split EVER.
If their tech is as good as they say, I don't think that will be a problem at all, and everybody will want to buy the stock, and it will take care of itself.
That is VERY naive on your part. I'm not even going to take the time to explain how things work. It just aint' worth my time.
Hey there Buy_Low. I didn't take your post personally at all.
As far as patents are concerned, I have no concerns there. As I stated, if RIM has something of value (which the evidence tends to support that it's very definite possibility that they do), then I believe the people on the BOD and also current employees will take care of the details.
In case you haven't realized this by now, I really would like to feel good about buying this stock. I really want to believe that the possibility exists that share price appreciation will be satisfactory. However, I have what I feel is a very valid concern. In the world of sales, it's called an objection. It's pretty well the main thing keeping me from buying stock at some point in the future.
I'm concerned about the number of shares outstanding. I'm also concerned about the very real possibility that the company will do a reverse split in order to make the company's stock more attractive for analysts and large potential buyers/investors.
In my opinion, the smart thing to do at some point in the future is a reverse split. To me, that's just going to have to happen.
So my questions are:
1. If the company says no reverse split, then how do they intend to make the stock attractive to purchase?
2. If they do a reverse split, will they subject their own holdings to the RS as well, or will they exempt themselves from it?
My question to Gary was intended to bring to folks' attention that this is damn well a real possibility, and to make sure Gary's totally unsubstantiated comment was viewed in its true light...as an irresponsible, totally fluff comment. OF COURSE Ray is going to say "NO RS". What else would he say at this point?
BL, I can respect your concerns over my comments. However, I believe my concerns are valid. The problem is I simply don't trust anything Ray says as you and i have been strung along now for years.
Mr. Lycus
Because that's not a hot button for me. I break this up into two possibilities:
1. They have something good
2. This is a scam
If they have something good, then the people they have on board will take care of things such as patents etc.
My concern is that management is going to SCREW the shareholders by doing a reverse split. That's MY hot button. After all, the folks that own this stock right now are petty little "get rich quickers" for the most part that will not have the money to fight anything in court.
So when I ask Gary to substantiate his comments, I know damn good and well that he can't. I just want to make sure that someone calls him out on that comment.
Other than that, I'm not sure why I spend time in this forum. It's like a bad habit.
Gary- I can respect your opinion. Please provide a basis for Wrong! That will not happen. Thank you.
Hey Bill...my point is that even IF they produce a standards compliant product that's a good quality product...I believe the current shareholders will still get a raw deal as it will be very difficult to get to a satisfactory share price.
Reverse split is almost a given here in my opinion. It's the smart thing for the company to do. If it were my company, I'd do it.
I haven't received private messages from anyone, Bill. It's actually a question that originated in my own brain. Just looking at the apparent facts and circumstances here and drawing conclusions.
In my opinion...even if they have an awesome product...and can somehow miraculously produce a standards compliant ASSP, long time shareholders are still going to get SCREWED BIG TIME.
Another good question. Would a company in Asia require a standards compliant product or are they more flexible than US companies?
goldy-
No...I cannot explain why they don't have patents. That would require that I expend time and energy on this stock. In order for me to expend time and energy, I'd need to feel it was worth it...and at this time I've not seen anything that would indicate to me that it's worth anything whatsoever as I believe a reverse split is imminent.
wheels- I'm convinced that RSMI has a technology of some sorts. Hell...it may even be decent enough to sell and make money. However, (and this is a HUGE HUGE however), having a technology is one thing. Raising the share price is quite another.
Here are a couple of legit questions that I don't believe Brad or Ray will ever have guts enough to answer in an honest manner.
1. How do you proceed forward without doing a reverse split?
2. If you do a reverse split, will you reverse split your (Brad, Ray, and the rest of the BOD) stock options and also current holdings right along with it or will you exempt yourselves?
Wheels...anyone with any sense can clearly see that a reverse split is almost a requirement here. Heck, if it were my company, I'd damn sure consider doing it as it's the smart thing to do.
So...my final question is...how in tarnation do you get around this inconvenient and unpleasant possibility (or even probability)?
Great question.
We have to make another assumption. We'll need to assume that you have closed the trade and were down by 25 pips. In that case, at $10 per pip, your drawdown would be $250 (25 pip loss X $10/pip).
Now let's say you've decided to risk 10% of your account per trade. Let's walk through an example.
1. You look at the fundamentals (which is your strong point and my weak point) and they say the eur/usd should go up.
2. You look at the chart and it's at a significant level of support.
3. You also look at the chart and see the next level of resistance is 100 pips to the upside.
4. You feel confident that this pair will go up and decide that risking 25 pips is reasonable. If the pair breaks more than 25 pips below that significant level of support, you were wrong about the direction and are willing to take a loss.
5. We're risking 25 pips to gain 100 pips for a 4:1 profit/loss ratio.
6. Your account is $10,000 and we can risk 10% because that's part of your business plan (trading plan) which comes out to a $1,000 risk.
7. Since we're setting our stop loss at 25 pips...then we're only risking $250 per currency lot. We can therefore invest in 4 currency lots which will require $4000...or 40% of your usable margin...but we're only putting $1,000 of the remaining portion of our usable margin at risk because of where we're setting our stop loss (25 pips X 4 lots = 100 pips X $10 per pip = $1,000).
So what I mean by 10% being somewhat aggressive is this:
A lot of folks look at how much money they're going to make in a trade. In the example above, 4 currency lots at a gain of 100 pips per lot = 400 pips X $10/pip = $4,000 potential gain.
However, is the person willing to take a drawdown of $1,000 if he/she is wrong? In my particular case, my first question is NOT how much can I make...but rather...how much will I lose if I'm wrong and can I live with that? And does the potential reward far outweigh the risk I'm having to take to get it?
That's a question that's answered mainly by experience in the market. Once again, a lot of professionals consider 5% to be very aggressive.
It just depends on the individuals tolerance. The tendency for a lot of folks is to risk more when the account is relatively small...and become more conservative as the account grows.
I hope this example helps. Feel free to ask for clarification if I wasn't very clear.
No problem at all. Draw down is the exact opposite of profits. If you're risking 3% of your portfolio per trade (max), then you're profits will be smaller than if you're risking 10%. However, on the other hand, in the 3% scenario, the amount your portfolio loses on the trade if your stop loss is hit will be smaller than the drawdown if you're risking 10%.
Some folks find that they're willing to make the big profits but cannot emotionally handle taking the larger drawdowns associated with that style of trading. They will therefore need to make adjustments accordingly.
The absolute most important thing is that a person has a consistent approach, no matter how strongly they feel about certain trades. If someone risks 3% on one trade and makes a gain, 3% on another and makes a gain...yet feels really strongly about a the next trade and risks 10%, they were correct twice and wrong only once...yet still lost a fair amount of money.
Does this all make sense? I hope this helps.
That's amazing. I could have made the same exact post myself...even down to the never having graduated high school.
Dude...formal education can be over rated at times. It looks like you're becoming educated the right way.
Have a good one.
Second paragraph....change $2500 and $250 to $25,000 and $2,500. As for me...I deal with 50:1 which requires that I set aside $2,000 for margin per lot (would be $200 in a mini).
However, I just opened a standard account with GFT at 200:1.
Totally agree with everything you said. If you don't mind me asking, how old are you and from where did you receive your education regarding these matters?
By the way...a lot of us will use a macd 8 17 9 which is a bit faster than the 12 26 9.
60% of your profits are taxed at long term capital gains rate....the other 40% is taxed at the short term rate.
ultimatepick
The guy that wrote the article may be confusing "leverage" with money and/or risk management. The leverage in an account deals with how much capital you're forced to set aside as a margin requirement for a single trade.
If you're at 200:1 leverage, you're then required to set aside $500 for margin per lot ($50 for a mini). At 4:1 leverage, you'd be required to set aside $2500 per lot (or $250 for a mini).
As for money management, that's pretty well determined by where you set your stop loss. A lot of professional investors feel that risking 5% of your portfolio on one trade is fairly aggressive. Some put a maximum of 1% to 2%. Putting 10% would probably be OK...but the person would need to realize that they'll likely take huge drawdowns on their account when they take a loss. However, if the system and rules you're trading with get you a pretty high expectancy ratio (average expected portfolio gain when gains and losses are averaged together), then 10% might be OK.
Most professionals will first ask "how much do I stand to lose if this trade goes bad"? This is determined by support/resistance levels. The second question is then..."now that I know how much I stand to lose...does the potential reward greatly outweigh the risk"? If so, then you already know where to set the stop loss. Some folks with smaller accounts argue against stop losses. However, you'll find that once you have a significant amount of money in an account, you tend to get a little skittish...and will usually want to set a stop loss to protect your capital because your ENTIRE ACCOUNT is at risk if you don't set it.
Once you've determined your risk to reward ratio, you will then usually have a set rule for amount risked. If you've decided to risk 4% per trade max, you simply look at the stop loss, and also 4% of account balance, and divide the 4% number by the stop loss. This gives you the number of lots to trade.
So, to answer your question, it seemed that the guy that wrote the article was suggesting that you put no more than 4% of your account at risk per trade. WHile he phrased it kind of strangely, I tend to agree with him as a general rule. However, I believe the tendency for traders when first starting is to bet the bank on one trade. If that's the case, they're either going to be very happy, very sad...or very happy at first and then very sad later. LOL
Long answer to a short question. I hope this helps.
Damn...LOL. You didn't even spell grammar properly.
Sounds to me like you're going through a mid life crisis.
Here's a snippet from a website. I thought one or two of you might find it to be useful.
http://www.rb-trading.com/begin8.html
Trading by emotion in an unstructured way certainly adds fun and entertainment to the enterprise. Taking positions on instinct is exciting, especially when they work out . . . as they often do. But in the end, this kind of trading will lose money.
Good trading is boring because you've thought out your strategy and tactics in advance. You trade according to a carefully tested system or method, not from what moves you emotionally that day.
Two psychological traits that separate winners from losers are patience and discipline. It is not enough to have a carefully tested trading plan. You must also be able to follow it religiously. This is not as easy as you may think.
Every experienced trader knows how great the temptation is to stray from the plan. There is always what seems to be a good reason. The true professional can resist this temptation and stick to his plan. He has the patience to wait for his method to signal a trade and not take trades he may be emotionally attracted to that are outside his plan. He has the discipline to follow his plan and take all the trades that it signals even when there appear to be strong reasons to make an exception.
This may sound easy, but when real money is on the line--your money--nothing is more difficult. The kind of trading that really works is emotionally demanding.
It is hard work to create a winning trading plan. It is hard psychologically to follow the plan after you create it. This is why so many people fail. Perhaps you have what it takes to be an exception.
It's a download you get from gft forex. It's separate from anything you'll actually get on the website. Contact tech support and they'll send it to you.
These predictors...if used properly...are a way to give a slight edge. I'll tell you right now there's no magic bullet. These "predictors" are nothing more than another indicator like a stochastics or MACD.
However, there are a few that seem to be much better than others.
I'be been looking for 3 months. I believe I tried several brokers demo accounts. I've finally decided to transfer my forex money to GFT Forex. Glad to get some confirmation that you like them.
My buddy has been using their predictive indicator that costs $500 per month per pair and has had AMAZING results. I'll probably try it out. http://www.stitrader.com/foresight/
Holiday pressures getting to you? lol
There was a time in my life where I'd have had the tendency to agree.
Sounds pretty good, Cap. However, there's quite a bit more to it than simply picking a trade and setting a tight stop loss.
1. Always trade in the direction of the trend. There are short, intermediate, and long term trends. If the intermediate term trend is up, but the short term trend is down, it's ok to place a short term trade going short...etc. etc.
2. ALWAYS go long at support, and short at resistance. NEVER EVER EVER EVER place a trade under any other circumstances. (There are viable counter trend approaches...but not for amateurs, IMO).
3. Only use a couple of indicators to confirm decisions that you've pretty well already made based on price action.
4. Have very specific rules for decisions on how to enter and exit trades. Know your plan for entry AND exit before ever executing the trade. Also use time targets.
5. Rather than trying to time exact tops and bottoms to the exact pip, wait for confirmation. (There are viable anticipatory strategies. However, a person should be prepared to set very very tight stops and also be prepared to be right only about 30% to 40% of the time).
I agree that it's much easier said than done. However, once someone has their system and rules in place, then it's up to the individual to exercise enough discipline consistently so the end result is consistent profitability.
I disagree.
He's a sleazeball. LOL
By the way...it's Christmas...not X-mas. But you knew that.
Have a Merry Christmas Mr. Yore.
I'm not sure. ataglance just introduced them a few days ago and I've not opened an account.
He's not being self righteous. He's just calling a sleazeball a sleazeball.
Merry Christmas.
I totally agree. When a person finally figures out how to make lots of money, they can either let it consume them and lose everything important...or they can sit back, relax, and do more important things like enjoy family, and use the money to bring family and friends closer together.
andrius--you said--
If you risk 20-25 pips and go for .02+ trades you could do really well. You might get stopped out quite a bit but your losers are going to be very small compared to your winners.
Obviously this is not tested and I'll find out how well it works over time but seems like an idea worth trying out.
BINGO. THIS STRATEGY HAS ALREADY BEEN TESTED. IT'S CALLED PROFESSIONAL TRADING. IN TRADING LIKE THAT...YOU ONLY NEED TO BE RIGHT LESS THAN 30% OF THE TIME TO BREAK EVEN AS LONG AS YOU RISK A DOLLAR TO MAKE 4 DOLLARS. AND IF YOU'RE RIGHT 50 TO 60% OF THE TIME...YOU'LL MAKE A KILLING.
On the prophet charts, the symbol is $dxy
It's the same thing as the link I gave you earlier. The difference is that website you're on is an introducing broker I believe.
They fill orders on the spread here: http://www.mbtrading.com/fx/default.asp
Thanks to Dr. Glance for pointing out this platform.
You're right on the money re: upper trend line. It's been in that channel since the beginning of September.
LT Matt
I do quite well trading my own account. I don't mind putting out analysis on trades I plan on taking. Please don't take this wrong...but I'm a little nervous about analyzing trades as i do not want to give advice. Ask specific questions about technicals and I'll be happy to help.
However...I will say that the looney is in an intermediate term uptrend (3 month)...and I generally will not take trades against the trend. It's almost like swimming against the current.
That's just me.
wheels
Be afraid Nay-Nay birds. Be very afraid. You too will become extinct. Make your dying cries for significance for soon you will be no more.
That's good stuff. I'll be glad when the day comes that the nay nay birds are extinct. I'll also be glad when the "investors" finish dumping their shares.
I have to admit that the statement made by the eSilicon guy does give the product a boost. Telecordia pretty well established that there was an actual product. Now eSilicon seems to confirm that it may actually be something damn good.
Still waiting on the sidelines with money for the company. It looks like it'll still be awhile. I can't stand dead money.
So we wait.