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greene@xxxxxxxxxxxxxxx wrote:
> So it's easier to make that 10% on $1,000 than $100,000 - or is it the other way
> around <g>?
What you *do* with $1000? <g> Actually, it would be easier with smaller amounts than
this.
> There are great traders - and great investors. So who's done better - George Soros or
> Warren Buffett - and does the answer to that question have any significance for the
> average trader/investor?
I respect both these guys, mostly because what they've accomplished is impressive given
their large base.
> It doesn't take all that many small losses to amount to a big loss.
I suppose so. However, similarly, it doesn't take many large losses to make a
catastrophic one.
> And how can a day
> trader possibly be talking about "bucking trends"? A trend isn't something that lasts
> for a few minutes - or a few hours.
Why not? I suppose this depends on how "trend' is defined, but there are distinct trends
within any time period. Hell, you can even spot trends on Level II, lasting as short as a
minute or two. What we're talking about here, Robyn, is rather the general direction of
the market, whatever the period. Let me give you an example of an extreme example of not
"bucking the trend." I never initiate a new position in anything against a negative
market bar. For markets, I use 3 minute bars, so in other words if the market is not
going my way during the current 3 minute period, I don't act. I can't tell you how much of
a difference this makes, as i have found that the odds diminish here. Another example
would be not trading against the daily trend - i.e. if the market is up, go long only, and
vice versa. Personally, I don't follow this, but I do pick my long entries very carefully
on days of overall decline, and vice versa. On the other hand, longer term players are
more or less at the mercy of such trends, *hoping* that things go their way in this
department. I'd rather swim with the tide myself.
BTW, I'm pleasantly surprised that this thread has generated so much interest. I love
this business, and am always enthused to discuss it.
Regards,
A.J.
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