Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The process of devising an effective automated day trading strategy is relatively straightforward, but it is helpful to have some appreciation of the indicators you will use and how they work. Two or three indicators working together in a complementary fashion should be all that is necessary to produce a winning strategy, and additional ones may actually hurt more than they help as they tend to begin to get in each others' way with increased complexity. You also have to have a sense of how frequently you want your system to trade and how much loss you can tolerate when the trade goes south, which together will define the range of your indicator thresholds within which you will optimize. Using the same indicators, a strategy built on a 1 min chart may look quite different, will normally trade much more frequently, and will likely produce vastly different results than one built on a 5 min chart.
Strategy trading as it is implemented on the TradeStation desktop and perhaps other trading platforms as well provides some truly impressive capabilities and results. How would you like ~$30K/month net returns trading 2 to 4 NQ contracts, which would require a minimum running account balance of just ~ $16K? This isn't intended as a plug for TS (I just have my trading account with them), so you could use any desktop you prefer for trade execution or go strictly seat-of-the-pants. If anyone is still out there and reading my posts, I would like to extend an invitation to join an ongoing forum discussion ("blog" if you will) on strategy trading at our website. Some of you may be familiar with it as the "TMG Forum" (just Google "themerlingroup-inc"). Just send an email to "tmgsignal@comcast.net" if you are interested and I will set you up with complimentary access to the site. You won't have access to the paid subscriber links that allow you to see to the near real time TMG signal, but otherwise you would have full and unlimited posting privileges, unlike here. The same basic rules for decorum and mutual respect of the host and other posters apply.
Okay, lesson learned with the RBTS board. If you find your way here, let's not repeat those mistakes. We all know who the management sides with, so that is a battle we will never win.
Yeah, all two of them (subscribers)...
However, "Scamman" is actually another trader from the old Clearstation days. Wouldn't want to tarnish his reputation by wrongful association.
Isn't it obvious? He always did what the market did, he just didn't telegraph it ahead of time. Who *is* his broker???
That may be it. Once he revises his e-count to what the market actually did, he corrects the trades to show how much profit they would have made. Of course, in his mind, that is all perfectly "legal". I wish I had a broker who would do that for me.
Not to worry. He'll surely have Puts before the next big down day. He *never* misses.
What part of "don't post on this board" don't you understand??
You banned us on your board, so since you are not interested in what we have to say, please do us the courtesy and stay away. We have had quite enough of your lies, conceit, and hubris.
I don't know. I have asked and been ignored.
iHub won't ban him, so I delete everything he posts.
Hey, Mon, that makes about as much sense as Pokemon's jibberish (but then, I guess that is the point).
For those of you who don't get it, Pokemon is without doubt one of the biggest pricks on iHub (but which for some strange reason iHub tolerates). So, those who have been victims of his arrogance and hubris are given wide latitude to vent here. If you don't like it, go somewhere else and spare us your sanctimony.
Here's a thought...
Why don't you MYOB? Either that, or go post somewhere else. Who appointed you the board monitor in the first place, or is that just something you do, i.e. wander around the boards critiquing others' posts?
Are you a woman???
Here's how it works...
Pokemon will call "down" for days on end, and then when there is a minor pullback, he will thump his chest and say, "See? I told you so." But he never factors in the negative impact of being *waaay* early with his calls, and nonchalantly chalks it up to his latest count being a "little off". It does not take a genius to figure out that if the market has been up strongly for days, there will eventually be a sell-off and vice versa on the down side.
How about a snowball's chance in hell?
The problem with the RSI is that in strongly trending markets an initial buy signal (RSI crossing back below an OB level) might be at ~ the same price as a subsequent sell signal using a more sensitive OB/OS indicator such as the Slow Stochastic. This is the case when the RSI blow through the OB level and goes higher, stalls, and then drifts lower as the Slow Stochastic heads all the way to OS. And of course, there is always the wiggle factor, or noise, to contend with. Say your RSI OB level is 70, and as the price approaches that and crosses, it dances back and forth over the line a number of times before heading higher or lower. And then there is the issue when it is close, but never quite gets there. At that point, recognizing that the market's trading character is constantly evolving, do you take the trade, if say some other indication says that volatility is reduced, or do you only trade when the hard technical criteria as defined by your backtest are met?
The primary goals of a rule-based, or mechanical, approach are to take the emotion and the "noise" out of your trading decisions, and that includes eliminating as much noise from outside sources as possible. While some may like the background noise or "eye candy" of popular financial news shows (e.g. CNBC, Bloomberg, FBN), you should recognize that they are basically cheerleaders for the unsophisticated Buy and Hold crowd (and some might say cynically who provide the fodder that fuels market advances *and* declines), and while it may be useful to know when certain potentially market moving data may be released, that in and of itself seldom gives you a clue as to how the market will react. You can take the approach to always be in Cash when such an event is looming, or you can stick with your position and take your gifts and lumps as they come, but always within the limits of your stops.
I am so tired of having to watch The Obama flap his mouth with more lies and distortions daily that I have largely kept the tube off this week, and the quiet has been rather pleasant.
Yes, rules are rules, but without understanding the psychology behind them, and the traps your mind sets for you as you go about your trading, can you hope to avoid the pitfalls. It could be said that the best trader is completely autistic, in that the mind games the market's moves plays with a thinking, intelligent person fall on "deaf" ears. My post was more about recognizing what your follow-on actions would be *if* you fell victim to a weak resolve and found yourself in that situation, and that considering your subsequent actions, i.e. bailing before your are whole, what a fool's errand it was to begin with.
If you go Long and Short, then you are a trader. The only difference is the time frame. The same TA principles apply to a 1 min chart as a one day chart, so the characterization of "day traders" as gamblers as compared to longer time frames is a distinction without a difference, IMHO. "Investors" are typically longer time frames (weeks to months) and often are Long only, although they may exit the market periodically as profit and/or loss targets are hit.
Yeah, I think I said that...
Do you think it might ever occur to him that e-wave is about as scientifically and/or mathematically based as say, reading chicken bones or tarot cards?
Ever the narcissist, he can't stand not knowing what someone might be saying about him.
Thought I would share a few lessons learned the hard way regarding trading psychology. As Dirty Harry opined in "Magnum Force", "A man's got to know his limitations", or stated another way, everyone has their own demons to deal with. The best system in the world is next to useless if you can't force yourself to follow it and make the trades it calls for, even if on occasion you might "outguess" it. One common problem is becoming "married" to a position and riding it into the ground. Say you take a position and it goes against you, but you feel so strongly that your position is the right one that you forgo the normal protective stop, and at some point, even double and triple down. Now you are *really* married to the position with the attitude that come hell or high water, the market isn't going to make a fool out of you on this one. Now, of course, the market goes on one of its famous tears, the reason for which is not important, but you hang on and eventually the market does start to come back. At what point then, having been so seriously underwater, do you start to lighten up "just in case" the market suddenly heads back the other direction? So, you liquidate your position as the market comes back to you, your only solace being that "it could have been (and was) so much worse". Now comes the tricky part. Ask yourself, if you were not willing to allow the market to come back all the way to make your position green, how much better off you would be if you had set a reasonable stop and if it was hit, then so be it, and saved yourself a lot of anguish in the process. You might have even forgone prime entry opportunities during the tear that could easily have negated the initial loss. Just food for thought from one trader to another.
Anybody see a bear? "Here, cubby, cubby..."
Well, that makes some sense. But then why do some use it in the body of the message? Ignorance of the true intent?
You mean, where the only message is the one stated in the title?
That's the beauty of e-waves. There is always a count that fits, albeit in hindsight. The problem of course is that your nasty broker won't give you credit for trades that you would like to have made in hindsight.
Just curious... Why do some people end their messages with the superfluous "EOM"??? Isn't that what punctuation is for??? Alternately, can't you always just stop typing???
If you want to promote your board and/or solicit posters, I suggest you do it somewhere other than here.
The MACD (11,66) has flat-lined above 80 (slope is hovering right around zero). It will likely take some outside event to push it over the edge, but when it comes, the decline from these lofty levels should be impressive. However, to make it stick, there has to be some carryover. If the hungry bears are too quick to book profits that have been as scarce as virtue in a whorehouse the last several months, that could make their celebration "short-lived".
Anyone trying to Short this pig?
Here's a simple 70+% win rate system. Go Long on a -.3% limit with a -.75% stop below that and a .67% profit target above at the close, to Cash at the open, and then go play golf. Lather, rinse, repeat...
Welcome...
Ever notice how he rails against whatever happens that affects the market, but then claims that whatever move the action produced was preordained by e-wave, only that perhaps it was hidden in an alternate count that he wasn't smart enough to see in advance? Also, he has no quantitative or mathematical idea of what he calls "most probable". He wouldn't know a confidence interval if it came up and bit him in the backside. A better description is his "best guess."
I am confused. I thought the dreaded wave iii was going to take the market down, down, down into the bowels of hell. Or was that several counts ago? Of course, Pokemon will maintain that he knew this massive rally was coming all along.
Yup, that is Pokemon to a "T"...
So wrong, so long, and yet he persists in trying to "revise and extend" his counts so he can claim retrospectively he was actually right all along. What a joker and a charlatan. He and The Obama are birds of a feather...
The second derivative of the MACD (10,66) has been negative for 6 days now (i.e. the rate of change of the slope of the MACD is slowing). A sustained move down will not be confirmed until the slope itself (the first derivative) becomes negative. It was a nice ride down at 2X Short today from the inflated open while it lasted, but netted out at a whopping 11.5 NDX pts. Big whoop...