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Hi David,
Well, in that case you are really lucky because the market gives you instant
profits. So the luck works two ways; or you buy the break out and the market
immediately takes off leaving you with profits.
Or, the market gives you another chance to buy even more on the average
better price.
The third possibility; the trade turns out to be a loser. But even in that
case your average buy is lower than where the system told you to buy. Even
in this case you will beat your own system.
OK, then where come all these advantages from? There must be a negative side
to pay the positive side. That's Nature's Law. And I think nature's law
comes in here; you initially want to trade two futures. You start with one
and you are hoping the market pulls back for a while to give you the chance
to buy the other future.
When this does not happen and the market starts to rise immediately you are
in the market with only half of your intentions.
Well, in my opinion this is an advantage too. It makes you practise the rule
"Greed is NOT good". Contrary to the popular opinion of Michael Douglas in
that Wall Street movie.
On the other hand; look through your data and calculate what happens most.
Immediate run up or first a pull back. That might be different for different
products. Just calculate what you see happen most and put your money on the
most frequent happening.
Mark Brown really did give a nice tip here I think.
regards,
Ed Kiers
----- Original Message -----
From: "david b. stanley" <davestan@xxxxxxxxxx>
To: "Mark Brown" <markbrown@xxxxxxxxxxxxx>; <omega-list@xxxxxxxxxx>
Sent: Wednesday, January 24, 2001 7:14 PM
Subject: Re: daytrading & money management
Hi Mark,
And for those times when the recoil never comes.....then what?
>exercise: next time you have a break out buy or sell - rather than buy
>the breakout - wait - wait until the price pop expires and collapses
>down as it is breaking down against what you would have previously
>bought. then buy - as the price is now going the opposite direction
>(down) that your whole being is fully committed to - can you do this?
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