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Shock ? ... No ... Laughter ? ... Uh Huh ...
--- In amibroker@xxxxxxxxxxxxxxx, "Pal Anand" <palsanand@xxxx> wrote:
>
> Actually, I would not use a Break-Even stop either. The reason
being
> that when one is investing for the long-term, the short-term
> fluctuations may take out the Break-Even stop, leaving you flat.
The
> only stop I would use is a worst case stop-loss based on
fundamentals.
>
> I find it rather silly and unnecessary to use a profit target. I
might
> consider using a limit order to sell at projected high of the day.
I
> would just exit at the open or close when circumstances warrant it.
> When the framework of evidence collapes, the architecture is merely
an
> illusion, a mirage, or in other words, castles in the air. If my
> beliefs cause shock in others, my sincere apologies...
>
> rgds, Pal
> --- In amibroker@xxxxxxxxxxxxxxx, "yukitaga" <yukitaga@xxxx> wrote:
> >
> > Someone who shall remain nameless tossed out this gem for serious
> > consideration (watch the line wrap):
> >
> > > Is exiting a portion of your trade before your profit target is
> > > hit a viable strategy?
> >
> > (watch the line wrap)
> >
> >
http://www.traders.com/Documentation/FEEDbk_docs/Abstracts_new/Passam
> > onte/Passamonte.html
> >
> > The guy who wrote this is a real kick. ^^_^^ First, he begins
his
> > article with an invocation to the sanctity of mathematics, which
I
> > don't really have a problem with. But then he proceeds to set up
a
> > straw man using statistics, which Mark Twain had a commentary on
> > something to the superlative of 'damned lies'.
> >
> > (If you have never read "Letters From The Earth" [Mark Twain],
you
> > are missing one of the great satirical writings in the English
> > language. I don't literally ROTFLOL very often, but I did many
> > times when reading that book.)
> >
> > The whole *point* of taking something off the table before some
> > profit target is hit seems to be beyond this self-
> > proclaimed "professional trader" who (I paraphrase) doesn't
bother
> > with a "few points" on the S&P, but who holds out for 5 to 10
points
> > or more on every trade.
> >
> > I'm impressed . . . ^^_^^ No, really! ^^_^^ I love taking the
> > other side of the trade against people who know where the market
is
> > headed before it arrives there, and who aren't going to take
> > any "nonsenese" from the market if it happens to disagree.
> >
> > But this God's gift to trading doesn't even seem to understand
that
> > one RAISES THE STOP when one takes a partial profit on a
position.
> > The whole point, the only point, and the point that counts is:
> > DEFENSE. That is why one takes partial profits. One does not do
it
> > attempting to maximize profits, but to protect capital.
> > Maximization of profit is wonderful. Hey, I'm all for it. But
only
> > AFTER the defense is set up. Before that, the whole idea is
> > balderdash and hooey gooey poppycock. Perhaps someone else has
> > better and more modern adjectives. My English is dated. In any
> > case, defense first, and anyone who doesn't play that way is dead
> > meat in this business.
> >
> > But the silly little argument with charts in that article has
> > someone taking a profit, then leaving the stop below breakeven.
> >
> > Duh! Gee, I wonder why the math works out like that? *_*
> >
> > Sorry, but I just couldn't let that little bit of 3-card Monty go
> > without a challenge.
> >
> > Yuki
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