Replies to post #9842 on ETF SWING & DAY TRADING

[was Steve]

<I won't touch a margin account.

smart man. margin is great if you are right but will wipe you out if wrong. i learned that lesson twice in my 14 years of trading. i will never need a re fresher course

[husk]

Hi North...yours is a conservative approach that works well for you.

I often start an entry with 50%, and add the other 50% if the trade goes in my direction within the next 2 days...other times I will enter 100% if the signals are compelling.

Wed of this week, I was 50% long...Tue had a bearish harami cross (a warning)..Wed near the end of the day, developed one of the ugliest sticks you will ever see..I went from 50% long on Wed. to 100% short at the close Wed. I think it takes time to develop a feel for the indicators and the market...even then nobody is always right. If you cut your losses when wrong, and ride with the trend when you get it right, you will do pretty well.

I know that has been said many times..but it's amazing how many people have problems with saying "I'm cutting my losses" and instead turn small losses into big ones.

[mr_cassandra]

Margin thoughts. I've used it for over 15 years but with great caution. Usually I only employ it when net new lows are minus 5% or better; for reasons which can be diligenced from my prior posts.

That being said, if you buy profunds enhanced funds, you already 'are' margined but without losing sleep worrying about a margin call.

Also, anytime I was heavily extended, I dumped some margin whenever the tide seemed against me, years ago.
For people inclined to chase high fliers at market tops, it can be a fatal tool.

If employed with caution at major mkt lows, whose signs can be diligenced back for many years, and only on solid investments, example sp400, I think its a good tool.

But nothing appeals to me more than Noconas hourly system, you don't hang around long, if wrong you are out quick. I charted his results posted month by month since May 24 and I see a relentless forward movement, including and despite being stopped out a couple times.