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Simple answer. Buy a put if you are long and a call if you are short. Finite
risk and umlimited profit. Ira
Linda Swope wrote:
> Regarding Norm's and others' suggestion of longer terms trades:
>
> I'm coming around to that point! I sure was ready to give up the stress of
> scalping! My new system sees the trades. I believe this system will suit
> my personality. All things point to go, but I've been afraid to pull the
> trigger for one reason. I'm afraid to hold anything overnight. A stop
> won't protect me from a major move overnight against me.
>
> Help me face that fear and I'll be ready to go!
>
> > The bottomline is that the daytrader must undergo many times the
> stress
> >than does a longer term trader in quest for a return on capital that is
> attained
> >by very few and that probably more likely would be attained if they
> lengthened
> >their time horizon. Additionally, if one has a successful long term trading
> >strategy, there is no reason that one couldn't keep another job or
> profession,
> >entering orders before the market opens, and therefore maintain another
> income.
> >So the cost of daytrading is potentially loss of an income from another
> job,
> >business, or profession, paying high fees and commissions for quotes and
> >brokerage, and unknown and unlimited personal and health costs due to the
> very
> >high stress.
> >
> > I was a floor trader in Chicago for 12 years, so I know about
> >daytrading.. It was alot of fun when I was in my 20s. It was less fun in my
> 30s.
> >It was then, in anticipation of where I wanted to be in my 40s, that I
> started
> >to train myself to trade from off the floor and started a long journey
> toward
> >learning how to trade on a longer term basis. I had studied many traders
> and
> >money managers and concluded that the really big money was made from off
> the
> >trading floor on longer term positions. I don't think George Soros or
> Warren
> >Buffet do very much daytrading. Yet, they both started with relative small
> sums
> >of capital and have built up their capital far beyond what most daytraders
> would
> >ever dream.
> >
> > I have spent the last dozen years on a path that has taken me from
> holding
> >positions for as little as a few seconds to a few hours to now taking
> positions
> >that I sometimes hold for weeks or months. I am very happy in my current
> trading
> >and life style. I am now away from the trading floor, the high stress of
> short
> >term trading, and I live in a paradisic part of the world. I find it very
> ironic
> >that the rest of the world seems to be rushing in the opposite direction.
> They
> >remind me of the moth wanting to fly toward the flame, a brilliant but
> short
> >existence.
> >
> >Relaxedly,
> >
> >Norman
> >
> >
> >
> >
> >>
> >>
> >> linda@xxxxxxxxxxxxxx
> >> Climb the mountains & get their glad tidings: Peace will flow into you as
> >> sunshine into flower; the winds will blow their freshness into you &
> storms
> >> their energy, & cares will drop off you like autumn leaves. John Muir
> 1838 -
> >> 1914
> >>
> >> -----Original Message-----
> >> From: Dtrader <dan@xxxxxxxxxxxxxxxxx>
> >> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> >> Date: Thursday, April 01, 1999 12:19 PM
> >> Subject: was [Bull Market]
> >>
> >> >
> >> >
> >> >on the other hand, so do 90% of artists, musicians and most new
> businesses.
> >> >
> >> >i'm not real sure this statistic has much relevance.
> >> >
> >> >dan
> >> >
> >> >
> >> >
> >> >-----Original Message-----
> >> >From: Norman Phair <ericrogers@xxxxxxxxxxxxx>
> >> >To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> >> >Date: Thursday, April 01, 1999 1:59 PM
> >> >Subject: Re: Bull Market
> >> >
> >> >
> >> >:I have heard figures as high as 90% of the people that do day trading
> >> >:fail. No work, no reward.
> >> >:
> >> >:Norman E,
> >> >:
> >> >:> "Peter M. Beckwith" wrote:
> >> >:>
> >> >:> Great post, Ira.
> >> >:>
> >> >:> Not only are there more on-line trading commercials than beer and
> auto
> >> >:> commercials, but the content and substance of these commercials is
> >> >:> completely off-line. The firms that sponsor these commercials hire
> >> >:> teams of lawyers to settle suitability of investment lawsuits and
> >> >:> arbitration suits all them time from people who lost their shirts(not
> >> >:> to mention their homes) after daytrading on the internet for a couple
> >> >:> of months. You would think that after all of the horror stories out
> >> >:> there about people who didn't understand what margin was or that if
> >> >:> the stock goes against you x percent you have to meet the cash
> >> >:> requirement, the firms themselves would take a more responsible
> >> >:> stance. Instead, most of us who keep CNBC on in the background have
> >> >:> to watch an Ameritrade commercial about a mom and housewive who can
> >> >:> take the kids to school and throw some money in a biotech company to
> >> >:> the tune of $1700/day or the guy who owns his own island, etc...
> >> >:>
> >> >:> I don't know what we are going to see with this market, but one day(I
> >> >:> hope) we can look back and just laugh at how absurd those commercials
> >> >:> really were. I am hoping it is sooner rather than later and then
> >> >:> maybe, just maybe the public will understand that trading is a
> >> >:> profession, not a hobby that you take up in your spare time...
> >> >:>
> >> >:> Pete Beckwith
> >> >:>
> >> >:>
> >> >:
> >> >
> >
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