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On the money!!!!
Stu
----- Original Message -----
From: "Don Roos" <roos@xxxxxxxxxxxxxxx>
To: "Bob Heisler" <bheisler@xxxxxxxxxx>
Cc: "Alan Courchene" <positionsize1@xxxxxxxxx>; "List Omega"
<omega-list@xxxxxxxxxx>
Sent: Tuesday, February 15, 2000 8:05 PM
Subject: Re: Which holds best promise?
> Bob and Alan:
>
> Good info. Thanks. As you have stated, Bob, the entries are the
determining
> factor for the others in many ways.
>
> You guys know this, but it should also be noted that if your entry is not
> optimal, your liklihood of being able to stay in the trade is smaller, as
is
> your ability to trade for a shorter period and still have a decent reward:
> risk. That is, poor entries require larger entry risks to prevent being
whiped
> out of the trade, and poor entries require a longer holding period or
better
> trending pattern to make the trade worthwhile. Poor entries will both
reduce
> your percent profitable trades and your average trade. The stops
required, are
> therefore directly related to how optimally you can achieve entry without
> lowering the percent of profitable trades. Also, many small accounts do
not
> have the luxury to decide whether to run 2 or 15 cars. So #1 (position)
may not
> be applicable, #2 (trade management) is dependent upon your entry. #3
> (assessing of market environment) also is determined by wanting to get a
good
> entry as well as some prediliction for the continuance of the direction
entered,
> long enough to create a good reward to risk. (For example, one may decide
not
> to trade during the midsession so as to avoid the light volume and the
scalping
> games of the floor piranha).
>
> So, from my experience (scalping and short term daytrading), entries are
#1.
> Your time frame for a trade may be a determining factor for the ordering
of your
> priorities.
>
> Good idea for discussion, Valinda.
>
> Don
>
>
>
> Bob Heisler wrote:
>
> > I would prioritize them this way, and also add a couple of things.
> >
> > 1) Position size (no 1-lots)
> > 2) Trade Management (stop placement, exit strategies, add-ons, etc.)
> > 3) Sensitivity to the market environment (particularly for intraday
trading)
> > 4) Reading the price action (Entries, but also determines all of the
above)
> > 5) Trading without an OPINION or BIAS to market direction
> >
> > And I couldn't agree with Alan more that the entries are the least
important
> > as they are meaningless without the first 4 items.
> >
> > Bob Heisler
> > www.rjhtrading.com
> >
> > -----Original Message-----
> > From: Alan Courchene <positionsize1@xxxxxxxxx>
> > To: List Omega <omega-list@xxxxxxxxxx>
> > Date: Tuesday, February 15, 2000 4:20 PM
> > Subject: Re: Which holds best promise?
> >
> > >I would prioritize them this way:
> > >
> > >1) Position adjustments (POSITION SIZE)
> > >2) Stop management (RISK MGMT)
> > >3) Pattern recognition (ENTRY)
> > >
> > >
> > >IMHO,
> > >One and two are key!
> > >Three is far less important.
> > >
> > >Alan C.
> > >
> > >
> > >
> > >--- TradeWynne@xxxxxxx wrote:
> > >> In a message dated 2/15/00 11:38:43 AM Pacific
> > >> Standard Time,
> > >> Valinda48524@xxxxxxx writes:
> > >>
> > >> > Which of the following trading approaches holds
> > >> the most potential?
> > >> >
> > >> > 1) Position adjustments
> > >> >
> > >> > 2) Pattern recognition
> > >> >
> > >> > 3) Stop management
> > >> >
> > >>
> > >> Valinda:
> > >>
> > >> Why are any of these mutually exclusive?
> > >> I would do my best with all three.
> > >>
> > >> Bill Wynne
> > >> SmartTrades.com
> > >>
> > >>
> > >
>
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