UPDATE: Sold off JEC the next day ... and now ... down 6.7%

[iversonyin]

Originally posted by: Descartes

Originally posted by: JMWarren

Originally posted by: Descartes

Ahh, then I take back my somewhat vitriolic reply. It's almost a reflex on ATOT these days...

My holding period is much shorter than yours, but part of my strategy is to take half of my position off the table at a gain of 5%; the rest rides with a trailing stop of 5%.

Given your timeframe and amount invested (I'm assuming it represents >= 10% of total equity at least?) I would do the same; however, nothing in the charts suggests a turn to the downside, so getting out of your position entirely would be premature and ill-advised, imo. A quick glance at the charts shows a volume consolidation after the rally around the 20th, and what I would do is wait for a volume breakout to either side of the current price channel. This would be an indication of the next rally. Momentum is important here; you could experience a return to support followed by another rally breaking out of the current channel; of course, you could experience the exact opposite. Wait for volume to exceed the ~500k mark by around 11AM (that's >= 1/3 of the volume for the entire day) and trade accordingly.

Nice returns, and good luck!

Anyone else think this reads alot like a horoscope?

LOL. Reading it again I have to agree.

Of course, stock analysis isn't that much difference; however, there is a quantifiable degree of causation between technical analysis and actual price movement.

It seems to me that 87 is a pretty huge level. I would set up trailing stops. Nothing on the chart suggest this thing would go down to $0. I would definitely set up stop order and keep up with the earning report. You might want to sell before the earning unless you are sure that the earning is going to meet expectation.

Also start looking for new stocks to invest in after you get out of this one. When you do find something interesting then you might consider selling.

 

[hookinitup]

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes

Originally posted by: hookinitup
~50% in 6 months. u tell me? sounds like one helluva return for such a time period. However, it's up to u. Technically u dont wanna go against a trend. if it's bullish then keep/go long and then sell when indications are bearish. U gotta keep that in perspective with ur goals, projections and profit objectives. It doesnt always pay to be too greedy. Hopefully the stock won't turn too dramatically due to unforseen circumstances.

All [mostly] valid, but all that should be almost patronizing to someone who drops $50k on a single play and considers themselves an avid investor.

Dropping $50,000 on a stock 99% garaunteed to inflate isn't risky to me.

If you think there is anything close to a 99% guarantee in stocks you're fooling yourself.

maybe he knows sumthin we dont. that's y i dont trade individual stocks and stick with indices or derivative markets. they offer a more even playing field for everyone. i finally checked it out. This engineering firm must have damn good lobbyists working in washington. fundamentally if the political climate chngs there i would dump. Also increased vol on lowering price is a bearish indicator (e.g. on the chart that u linked to; the bar after oct 05 and the coupla bars after nov 05). Again, just general rules.

 

[iversonyin]

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: everman
Ring the register, I can't image you being well diversified in this sort of position...are you?

I think I am diversified. INGDirect, CDs, Vanguard funds and indexes (7), stock portfolio (~25).

Originally posted by: Descartes
What the hell is an "avid investor" doing asking such a ridiculous question?

I am still inexperienced.

Ahh, then I take back my somewhat vitriolic reply. It's almost a reflex on ATOT these days...

My holding period is much shorter than yours, but part of my strategy is to take half of my position off the table at a gain of 5%; the rest rides with a trailing stop of 5%.

Given your timeframe and amount invested (I'm assuming it represents >= 10% of total equity at least?) I would do the same; however, nothing in the charts suggests a turn to the downside, so getting out of your position entirely would be premature and ill-advised, imo. A quick glance at the charts shows a volume consolidation after the rally around the 20th, and what I would do is wait for a volume breakout to either side of the current price channel. This would be an indication of the next rally. Momentum is important here; you could experience a return to support followed by another rally breaking out of the current channel; of course, you could experience the exact opposite. Wait for volume to exceed the ~500k mark by around 11AM (that's >= 1/3 of the volume for the entire day) and trade accordingly.

Nice returns, and good luck!

Thanks - I understand why you would jump at me, so no offense. I attempted to include a disclaimer!

Yea, my 'teacher' persay funds/owns a NASCAR team if I am not mistaken. I'm not sure how all that works. And if you are wondering why I wouldn't contact him - we are going to see how I do over a full economic rotation going solo. Well, solo meaning not merely following what he tells me I should do!

Well then, I'd say the first step is to stop asking for advice from yourself or others. Put together a strategy and stick to it. If you trade with full discretion each time you'll find your profits dwindle as you hold on thinking it's going to go up, sell when you think it's going to go down, etc.

My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

You are a trader, he is more of an investor. but trailing stops are good idea for both traders and investors.

There is nothing wrong with discretionary trading.😀

 

[Descartes]

Originally posted by: hookinitup

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes

Originally posted by: hookinitup
~50% in 6 months. u tell me? sounds like one helluva return for such a time period. However, it's up to u. Technically u dont wanna go against a trend. if it's bullish then keep/go long and then sell when indications are bearish. U gotta keep that in perspective with ur goals, projections and profit objectives. It doesnt always pay to be too greedy. Hopefully the stock won't turn too dramatically due to unforseen circumstances.

All [mostly] valid, but all that should be almost patronizing to someone who drops $50k on a single play and considers themselves an avid investor.

Dropping $50,000 on a stock 99% garaunteed to inflate isn't risky to me.

If you think there is anything close to a 99% guarantee in stocks you're fooling yourself.

maybe he knows sumthin we dont. that's y i dont trade individual stocks and stick with indices or derivative markets. they offer a more even playing field for everyone. i finally checked it out. This engineering firm must have damn good lobbyists working in washington. fundamentally if the political climate chngs their i would dump. Also increased vol on lowering price is a bearing indicator (e.g. the bar after oct 05 and the coupla bars after nov 05). Again, just general rules.

There's nothing legal that he could possibly know that gives him 99% confidence. Trading has an ultimate unknown: Other traders. Unless you can anticipate the actions of every other trader in the market you can't get even close to approaching 99%. What you can have is high probability, but even then it's a matter of consistency in order to exploit the odds.

 

[Safeway]

Originally posted by: iversonyin
Also start looking for new stocks to invest in after you get out of this one. When you do find something interesting then you might consider selling.

I never stop looking. That's the problem. I am finding myself on my laptop in class browsing earning reports, analyst reports, and the like.

 

[Safeway]

Originally posted by: Descartes
My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

Such short-term trading scares me ... and for some reason, dropping a respectable amount into a single stock doesn't.

 

[Descartes]

Originally posted by: iversonyin

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: everman
Ring the register, I can't image you being well diversified in this sort of position...are you?

I think I am diversified. INGDirect, CDs, Vanguard funds and indexes (7), stock portfolio (~25).

Originally posted by: Descartes
What the hell is an "avid investor" doing asking such a ridiculous question?

I am still inexperienced.

Ahh, then I take back my somewhat vitriolic reply. It's almost a reflex on ATOT these days...

My holding period is much shorter than yours, but part of my strategy is to take half of my position off the table at a gain of 5%; the rest rides with a trailing stop of 5%.

Given your timeframe and amount invested (I'm assuming it represents >= 10% of total equity at least?) I would do the same; however, nothing in the charts suggests a turn to the downside, so getting out of your position entirely would be premature and ill-advised, imo. A quick glance at the charts shows a volume consolidation after the rally around the 20th, and what I would do is wait for a volume breakout to either side of the current price channel. This would be an indication of the next rally. Momentum is important here; you could experience a return to support followed by another rally breaking out of the current channel; of course, you could experience the exact opposite. Wait for volume to exceed the ~500k mark by around 11AM (that's >= 1/3 of the volume for the entire day) and trade accordingly.

Nice returns, and good luck!

Thanks - I understand why you would jump at me, so no offense. I attempted to include a disclaimer!

Yea, my 'teacher' persay funds/owns a NASCAR team if I am not mistaken. I'm not sure how all that works. And if you are wondering why I wouldn't contact him - we are going to see how I do over a full economic rotation going solo. Well, solo meaning not merely following what he tells me I should do!

Well then, I'd say the first step is to stop asking for advice from yourself or others. Put together a strategy and stick to it. If you trade with full discretion each time you'll find your profits dwindle as you hold on thinking it's going to go up, sell when you think it's going to go down, etc.

My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

You are a trader, he is more of an investor. but trailing stops are good idea for both traders and investors.

There is nothing wrong with discretionary trading.😀

There is if you're trying to be consistently profitable. This refers merely to trading of course, and not necessarily investing. If you read about any of the known successful traders, all of them traded a system as though they were almost agnostic to the market conditions.

Also keep in mind that it's almost impossible to actively research and trade each issue. Traders (not referring to day traders here, but more along the lines of a week to few week holders) often make many plays a day (many if not most unsuccessful) and it would be simply too time consuming to research each one. My software tells me precisely what to do and I do it, and I do that because I have a historical edge that will manifest itself over a sufficient sample size.

But you're right. I'm not trying to talk about me or trading; rather, apply solid risk and money management principles that apply to anyone in the markets.

All imo of course!

 

[Safeway]

Originally posted by: Descartes
There's nothing legal that he could possibly know that gives him 99% confidence. Trading has an ultimate unknown: Other traders. Unless you can anticipate the actions of every other trader in the market you can't get even close to approaching 99%. What you can have is high probability, but even then it's a matter of consistency in order to exploit the odds.

No inside trading knowledge, sorry. I just felt that the only variable was the amount made, not lost.

 

[Descartes]

Originally posted by: Safeway

Originally posted by: Descartes
My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

Such short-term trading scares me ... and for some reason, dropping a respectable amount into a single stock doesn't.

Everyone has their own style. I've had stocks turn 10% in the premarket on me, and I couldn't see risking so much of my capital with that level of risk. Sure, you're up $20k on this one stock, but had you just entered and it turned 10% that next day you're in for a huge surprise. Don't think it will happen? Make enough plays and it absolutely will.

 

[Safeway]

Originally posted by: Descartes
My software tells me precisely what to do and I do it, and I do that because I have a historical edge that will manifest itself over a sufficient sample size.

I am invisioning that hokey, phony, farse, scammish software that you see infomercials for. "You can make millions, just like Buffet!"

Please tell me what you are using to rid these evil thoughts from my head.

 

[Descartes]

Originally posted by: Safeway

Originally posted by: Descartes
My software tells me precisely what to do and I do it, and I do that because I have a historical edge that will manifest itself over a sufficient sample size.

I am invisioning that hokey, phony, farse, scammish software that you see infomercials for. "You can make millions, just like Buffet!"

Please tell me what you are using to rid these evil thoughts from my head.

Absolutely nothing like that, I assure you. The idea is nothing new... hedge funds have used automated trading systems for many years. Trend followers use them. Traders use them. I'm sure even some low expense ratio funds use them.

All this type of software does is take your knowledge and automate it. The only magic is keeping you from having to go through the same process every single time you make a trade. I use a combination of software I wrote with implementations for various brokerages (Interactive Brokers has an API, MBTrader does, so does Ameritrade, etc. etc.).

The software functions as follows:

1) Limits the scope of available stocks by evaluating fundamental criteria.
2) Limits that scope even further by identifying baseline technical criteria (e.g. stochastics perhaps, MA crossover... whatever you want)
3) Identifies an entry and makes the entry.

All this is automated. TradeStation has some ability to automate, Wealth Lab does, etc. No gimmicks here.

 

[Safeway]

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes
My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

Such short-term trading scares me ... and for some reason, dropping a respectable amount into a single stock doesn't.

Everyone has their own style. I've had stocks turn 10% in the premarket on me, and I couldn't see risking so much of my capital with that level of risk. Sure, you're up $20k on this one stock, but had you just entered and it turned 10% that next day you're in for a huge surprise. Don't think it will happen? Make enough plays and it absolutely will.

Like I said, I am just too inexperienced at this point to have confidence it my trading actions, and this uneasiness wouldn't settle well (pun intended).

 

[Descartes]

Originally posted by: Safeway

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes
My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

Such short-term trading scares me ... and for some reason, dropping a respectable amount into a single stock doesn't.

Everyone has their own style. I've had stocks turn 10% in the premarket on me, and I couldn't see risking so much of my capital with that level of risk. Sure, you're up $20k on this one stock, but had you just entered and it turned 10% that next day you're in for a huge surprise. Don't think it will happen? Make enough plays and it absolutely will.

Like I said, I am just too inexperienced at this point to have confidence it my trading actions, and this uneasiness wouldn't settle well (pun intended).

Understood. Not trying to change your mind or sell you anything. Everyone has their own style.

 

[Safeway]

If you don't mind sharing, in private preferably, your monthly gains/loses incurred since you began this operation?

 

[theeedude]

Originally posted by: Descartes

Originally posted by: omega366
The PE is pretty high. You should Sell. The margain of error is too great.

No one, and I repeat... no one, trades the PE. Trades are based on decisions derivative of the price and volume action, and that's it. Value investors seek valuation ratios like PE (PE is pretty worthless without other considerations such as debt, cash flow, PEG, etc. etc.).

6 months is far, far too short a timeframe to make any decisions on PE.

I trade the PE. Especially commodity stocks. Now maybe you don't trade a growth stock on PE, but you can trade a lot of stocks on it, even short term.
I see Nickel price go up on LME, and if Inco stock price goes down, I buy some. Other way around, I sell. Purely a PE calculation for me. Because if the price of what Inco is selling goes up, and their stock price goes down, someone is wrong. If longs are wrong, that's already priced in, if shorts are wrong, you make money.
See that small hike in Nickel price on Jan 18? and
Corresponding dip to 43 in price of Inco
Big buy signal to me. I am in at 43.12, out at 51.11 on 2/1. 😀

 

[chuckywang]

Too rich for my blood.

 

[iversonyin]

Originally posted by: Descartes

Originally posted by: iversonyin

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: everman
Ring the register, I can't image you being well diversified in this sort of position...are you?

I think I am diversified. INGDirect, CDs, Vanguard funds and indexes (7), stock portfolio (~25).

Originally posted by: Descartes
What the hell is an "avid investor" doing asking such a ridiculous question?

I am still inexperienced.

Ahh, then I take back my somewhat vitriolic reply. It's almost a reflex on ATOT these days...

My holding period is much shorter than yours, but part of my strategy is to take half of my position off the table at a gain of 5%; the rest rides with a trailing stop of 5%.

Given your timeframe and amount invested (I'm assuming it represents >= 10% of total equity at least?) I would do the same; however, nothing in the charts suggests a turn to the downside, so getting out of your position entirely would be premature and ill-advised, imo. A quick glance at the charts shows a volume consolidation after the rally around the 20th, and what I would do is wait for a volume breakout to either side of the current price channel. This would be an indication of the next rally. Momentum is important here; you could experience a return to support followed by another rally breaking out of the current channel; of course, you could experience the exact opposite. Wait for volume to exceed the ~500k mark by around 11AM (that's >= 1/3 of the volume for the entire day) and trade accordingly.

Nice returns, and good luck!

Thanks - I understand why you would jump at me, so no offense. I attempted to include a disclaimer!

Yea, my 'teacher' persay funds/owns a NASCAR team if I am not mistaken. I'm not sure how all that works. And if you are wondering why I wouldn't contact him - we are going to see how I do over a full economic rotation going solo. Well, solo meaning not merely following what he tells me I should do!

Well then, I'd say the first step is to stop asking for advice from yourself or others. Put together a strategy and stick to it. If you trade with full discretion each time you'll find your profits dwindle as you hold on thinking it's going to go up, sell when you think it's going to go down, etc.

My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

You are a trader, he is more of an investor. but trailing stops are good idea for both traders and investors.

There is nothing wrong with discretionary trading.😀

There is if you're trying to be consistently profitable. This refers merely to trading of course, and not necessarily investing. If you read about any of the known successful traders, all of them traded a system as though they were almost agnostic to the market conditions.

Also keep in mind that it's almost impossible to actively research and trade each issue. Traders (not referring to day traders here, but more along the lines of a week to few week holders) often make many plays a day (many if not most unsuccessful) and it would be simply too time consuming to research each one. My software tells me precisely what to do and I do it, and I do that because I have a historical edge that will manifest itself over a sufficient sample size.

But you're right. I'm not trying to talk about me or trading; rather, apply solid risk and money management principles that apply to anyone in the markets.

All imo of course!

There are discrectionary traders that make a bundle. The one with discipline of course.

I agree with you. Risk/money management is very important. The system he uses is none of that Wizetrade crap on infommercial. Its a simple money management system that prevent you from taking big losses like idiots.

Wasn't Jesse Livermore a discrectionary trader?

 

[Descartes]

Originally posted by: Safeway
If you don't mind sharing, in private preferably, your monthly gains/loses incurred since you began this operation?

I posted it in another thread not too long ago. Search for my name and you should find it.

I typically make about 10 plays a week, and at any given time I might be holding 5 or so positions. Each position is ~$5k and total transaction costs are about ~$15. Average gainers are > 5% and average losers are 2%.

I won't give anyone a full description of how I derive my picks, but I can say I've not seen it published. Suffice it to say that I calculate peak deltas and average volume consolidation between them; from those deltas I determine what constitutes a breakout and watch intraday action on those picks. When my system identifies a breakout on volume and price I go long (or short, but right now I'm only long... details aren't important). I attempt to gauge the strength of the breakout to some degree by calculating the true range over 15 minute intraday bars, but that doesn't play a large part of my strategy. I've found that it's successful about 60% of the time, and given that my risk to return is on average 3:1 at the absolute least it has the potential to be enormously profitable.

I already said too much. I maintain a trading journal where I list all my plays, but I hesitate to post it here as that would break my [thin] veil of anonymity. Not that anyone would care, but I don't want to mix worlds. If you want specific information feel free to PM me.

 

[Descartes]

Originally posted by: iversonyin

Originally posted by: Descartes

Originally posted by: iversonyin

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: Descartes

Originally posted by: Safeway

Originally posted by: everman
Ring the register, I can't image you being well diversified in this sort of position...are you?

I think I am diversified. INGDirect, CDs, Vanguard funds and indexes (7), stock portfolio (~25).

Originally posted by: Descartes
What the hell is an "avid investor" doing asking such a ridiculous question?

I am still inexperienced.

Ahh, then I take back my somewhat vitriolic reply. It's almost a reflex on ATOT these days...

My holding period is much shorter than yours, but part of my strategy is to take half of my position off the table at a gain of 5%; the rest rides with a trailing stop of 5%.

Given your timeframe and amount invested (I'm assuming it represents >= 10% of total equity at least?) I would do the same; however, nothing in the charts suggests a turn to the downside, so getting out of your position entirely would be premature and ill-advised, imo. A quick glance at the charts shows a volume consolidation after the rally around the 20th, and what I would do is wait for a volume breakout to either side of the current price channel. This would be an indication of the next rally. Momentum is important here; you could experience a return to support followed by another rally breaking out of the current channel; of course, you could experience the exact opposite. Wait for volume to exceed the ~500k mark by around 11AM (that's >= 1/3 of the volume for the entire day) and trade accordingly.

Nice returns, and good luck!

Thanks - I understand why you would jump at me, so no offense. I attempted to include a disclaimer!

Yea, my 'teacher' persay funds/owns a NASCAR team if I am not mistaken. I'm not sure how all that works. And if you are wondering why I wouldn't contact him - we are going to see how I do over a full economic rotation going solo. Well, solo meaning not merely following what he tells me I should do!

Well then, I'd say the first step is to stop asking for advice from yourself or others. Put together a strategy and stick to it. If you trade with full discretion each time you'll find your profits dwindle as you hold on thinking it's going to go up, sell when you think it's going to go down, etc.

My strategy is as follows. My holding period is rarely over 4 days, and my plays are automated and thus fully mechanical; no discretion or emotion.

- Go long a stock ~11AM with 2% total equity
- Total stop loss at 2% from entry
- Trailing stop at 5%
- Sell half position at 5% profit
- Let the rest ride with the 5% trailing

That's simplifying it a bit, but the point is you have to manage your risk and money consistently. By asking for advice I'm assuming you're not doing that yet, and that's the most detrimental deficit to any self-managed portfolio, imo.

You are a trader, he is more of an investor. but trailing stops are good idea for both traders and investors.

There is nothing wrong with discretionary trading.😀

There is if you're trying to be consistently profitable. This refers merely to trading of course, and not necessarily investing. If you read about any of the known successful traders, all of them traded a system as though they were almost agnostic to the market conditions.

Also keep in mind that it's almost impossible to actively research and trade each issue. Traders (not referring to day traders here, but more along the lines of a week to few week holders) often make many plays a day (many if not most unsuccessful) and it would be simply too time consuming to research each one. My software tells me precisely what to do and I do it, and I do that because I have a historical edge that will manifest itself over a sufficient sample size.

But you're right. I'm not trying to talk about me or trading; rather, apply solid risk and money management principles that apply to anyone in the markets.

All imo of course!

There are discrectionary traders that make a bundle. The one with discipline of course.

I agree with you. Risk/money management is very important. The system he uses is none of that Wizetrade crap on infommercial. Its a simple money management system that prevent you from taking big losses like idiots.

Wasn't Jesse Livermore a discrectionary trader?

Good point, but I think we're thinking of it differently. When I say discretionary I refer more to the lack of discipline, the lack of a consistent set of criteria that you follow. Those that use full discretion buy on tips, sell on panic, etc. The lack of consistency doesn't give them enough information to know how to improve.

I could trade my system manually if I wished, but there's always that nagging overriding "logic" that panics when you see large sums moving in and out of your account. I prefer not to even look. If I trust my system I do so with full conviction.

 

[DaWhim]

hold it. lock it in the safe and forget about ever owning this stock.

 

[Safeway]

Originally posted by: DaWhim
hold it. lock it in the safe and forget about ever owning this stock.

What is your reasoning?

 

[everman]

Have you ever read a book called A random walk down wall street? I like to recommend this to everyone interested in investing.

Tip of the day - don't marry your investments.

 

[jagec]

I'm still beating myself up for selling my Exxon-Mobile stock in December 🙁

 

[Safeway]

UPDATED.