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Eric wrote:
>
> > >
> > > Come on, why so much derision in these statements? Isn't this a little
> > > overboard? After all we short term guys provide liquidity when you need
> > > it.
> >
> > NW: You sure you should be so hard on yourself? Who said I was referring
> > to you? But, I guess if the shoe fits..... As for derision, I was only
> > applying a highly accepted precept of human behavior to trading. I
> > believe according to Maslov management principles, money is far down the
> > list of human motivational factors. Most people are not primiarily
> > motivated by money, hence there are lots of traders who are trading for
> > reasons other than profits. If you don't believe it, just go the the
> > grocery and find an item that is on sale and watch people buy the
> > competitor's item for a much higher price. Don't bother saying anything
> > to them about saving money unless you want to get a very nasty stare.
> > Gee, I guess that's just like mentioning about daytrading on the RT and
> > then getting someone spewing hurt feelings?
> > > >
> > > > Thanks,
> > > >
> > > > Norman
>
> Well I guess a little harmless sarcasm doesn't come through too well in
> e-mail if I forget to put in the little smiley face. My feelings are
> hardly hurt and I am not taking it personally.
> But you didn't respond to the meat of my comments. Do you really claim
> that buy and hold is less risky?
>
> Eric
Eric,
No, I mean that whether long or short, which ever way the market
dictates is profitable should be the way to go and that getting out by
the end of the day has little to do with that. For example, let's say
your analaysis says that the S&Ps have another $20 to go in your favor.
Should you get out at the end of the day and risk missing the move or
stay with a winning trade? Unless I saw something in the market to
strongly indicate that I would be able to re-enter the market at a
better
price, I would prefer to keep the position. Why get out if your market
analysis doesn't say to do that? The end of the trading day is an
artificial contraint on one's trading. The key to trading success is to
cut the losses short and let the profitable trades run. If you get into
the trade with a half hour to go, and you must get out by the end of the
trading day, how are you going to let your profits run?
Regards,
Norman
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