Teach A Man To Fish And.........

[CreditViolet]

hallo saint,
recently i see an ad of www.tradeguider.com...

Useless software, its very deceptive since it would erase most of the wrong signals after the fact.I have used it both RT and EOD, not worth investing time into.

 

[lvgandhi]

Thanks to the many members who requested Saint to continue with this thread I am pleased to inform you that Saint has finally agreed to your requests.

I am happy to reopen this thread and welcome Saint back here!

It is very kind of Saint and Traderji to all newbies like me.

 

[Saint]

Dear Saint,
Welcome back. Looking forward for old happy days.
Regards
R. S. Iyer

Thanks Asish,Bav,RSI,Satya,Moneypick,lvg,swagat for all your kind words..........all the best!

Saint

 

[oxusmorouz]

Thanks Asish,Bav,RSI,Satya,Moneypick,lvg,swagat for all your kind words..........all the best!

Saint

Great to have you back, Saint.

 

[avinash]

Great to have you back,Saint!!

Regds,
Avinash

 

[karthikmarar]

Hi Saint

I am wordless can utter only one word THANKS

Warm regards

Karthik

 

[uasish]

Saint,
There is a fad now a days of advocating not to use Stop Loss,even heard of upwardly mobile SL for Short positions.
Many newbies are sucked by these swithching time frames so called TA's stupendous advise.
Plz guide all of us on Stop Loss & how vital it is & why.
Asish

 

[Saint]

Saint,
There is a fad now a days of advocating not to use Stop Loss,even heard of upwardly mobile SL for Short positions.
Many newbies are sucked by these swithching time frames so called TA's stupendous advise.
Plz guide all of us on Stop Loss & how vital it is & why.
Asish

lol.....upwardly mobile stop losses for short positions???!!!!!

That's a new one!!

The house must understand, that there is nothing like a no stop loss.

If you get thrown out of the market because of lack of funds, then thats your stop loss. You have to decide whether you want to still be alive after this trade, to be able to again come back to this thread to look for the next trade.

People who trade without stop losses may win 9 out 10 times, however that one time when the Twin towers crash, the profits from all the other 9 times and an extra 9 more times will come crashing down.

We are placing stops to protect what we have earned the hard way.

Are we all ready just to let those very hard earned profits / earnings just slip away?

I never trade without a stop loss and place it the moment I place a trade & also the first thing when the markets open. I have learned it the hard way.

Remember, profits always take care of themselves, our job is to take care of the losses.

Cheers !!

Excellent post,Technical Trader!!

Asish,I subscribe to the above viewpoint........I believe that there must be a point at which we bail out.For the newcomers,........let us say that we have an ascending triangle.We all know that we are expecting a breakout rather than a breakdown.We wait,and we get that breakout.Yippee!!We are in,now the stock does an immediate volte face and takes a plunge the next few days,breaking the ascending triangle to the down...........now what do we do?We wait?We hope and pray that something happens?Never,my friends...........we act,and we act fast.That point where the trade goes in reverse direction to your expected move is called a stop loss.Breaking that stop loss point means we are out........We save ourselves from account damage,psyche damage and gastric lining damage!

This allows the mind to behave as mechanically as possible...........There are strategies where one doesn't put in a stop loss,but only because they are always in the market strategies.Then the person is either long or short......even then that point of reversal acts as a stop loss.So,is a stop loss vital ?Yes........how you place it,mentally,written or with the broker is as per your comfort levels.But there must be a point in any trade where you say:Well,that's the point after which I am out.

About the upwardly mobile stop for shorts................absolutely ridiculous!!

All the best!
Saint

 

[Saint]

An old-ish post from Traderji........

The key components of a successful trading plan are an edge, discipline, risk control, and money management.

Controlling your risk

Successful speculation is all about managing risk. A winning trader always knows how much they will lose, but rarely know how much they will make. The key is to never let a single trade or single event (that may impact on multiple positions) have a major negative impact on the trading account.

"Never, ever, trade without a stop-loss order. If you don't know what a stop-loss is, you should not be trading."

Money management

A basic investment tenet states there is a direct relationship between risk and return. Trading is no different - the greater the account value risked on a single trade idea, the more volatile the total returns from the trading strategy will be.

A simple strategy is to never risk more than 2% of your trading account on a trade. Most professional money managers will risk a fraction of 1% on a single trade.

"There are many bold traders, but there are very few old, bold traders".

The Difference between the professionals and the novices.

The "Professionals" fit the following profile:

they trade completely objectively using mathematical models to arrive at trading decisions, there is no emotion involved;

their ideas are well researched to ensure their strategy has a definable edge;

they follow trends in prices, by controlling their risk and allowing profits to accumulate;

they realise the market is not predictable, so employ techniques that will profit by recognising trends, rather than anticipating them.

The "novices" fit the following profile:

their trade strategies are usually based on esoteric analytical techniques that are highly subjective, making it difficult (if not impossible) to determine the provision of an edge;

they have a pre-occupation with forecasting prices or dates on which trends in the markets will reverse (ie a belief that the markets are predictable);

by design, their subjective strategies make a disciplined trading approach difficult as it is too easy to "bend the rules";

they pay little attention to risk control and money management.

One final quote:

"Winners hold their winning trades, losers hold their losing trades"

All the best!
Saint

 

[Saint]

Now before there is a melee here about the importance of the EDGE over MM and stop losses,..........totally agreed!And yet,these are important.....

Another great post from Traderji......

In order to be a successful full time trader, you must understand the true realities of the markets. You must learn how the professionals make money and what is possible. Most traders enter the markets, lose a substantial portion of their capital and then leave trading without ever having a correct perception of what good trading is all about.

If you think that the way to make money is to learn how to predict where market prices are going next then you are mistaken. Though is may be difficult to believe and understand, the truth is that the markets are not predictable except in the most general way.

How do professionals make money?
As a professional I believe that the trend is your edge. If you follow trends with proper risk management methods and good market selection, you will make money in the long run. Good market selection refers to trading in good trending markets generally rather than selecting a particular situation likely to result in an immediate trend.

Hurdles that you have to overcome in order to be successful!
To be successful in trading you have to overcome these three hurdles:

The first is finding a trading method that actually has a statistical edge.

Second is following it with consistency.

Third is consistently following the method long enough for the edge to manifest itself on the bottom line.

If you can conquer these hurdles you are on the way to untold riches.

All the best!
Saint