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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!
NW: Easy! Dr.Norm has the answer. Just cut your position size down to a
"sleeping point". For example, if you are accustomed to scalpping five lots,
try taking a position with a one lot and then target at least five times as much
profit per contract. When you cut the position down to where it feels boring and
you should have done more, you have found the right size for your account. Now
that you are trading smaller and are better captilized, you will gain more
flexibility in your trading. Trading smaller positions gives you the option of
taking trades with greater dollar exposure and when there is the occasional over
night extreme gap way thru your stop point you will have the option to trade
your way out of trouble. By allowing greater dollar exposure, you should also
experience a higher percentage of winning trades, as it will be much harder to
shake you out of good positions due to normal daily market noise.
> My final pearls of wisdom are that one should see trading as a strategy
> game, similar to checkers or chess. One of the keys to winning in chess is to
> get your pieces in a position where you don't care what the opposition does.
> In fact, you want the enemy to try to hurt you.. Just let him take that
> knight and you will take his Queen or put his King in check. Another way to
> put this is that AMBIVALENCE IS POWER! The source of ambivalence is BALANCE.
> If you have a balanced position, you have thought thru all the likely outcomes
> and most of the not so likely outcomes and you are prepared to welcome and
> manage those outcomes to your advantage. So, which ever way the market goes,
> you see it as an opportunity for which you will use to your advantage. When
> you adopt this approach, you don't care what the market does, so you have
> little reason to be stressed by your trading. After some practice with this
> approach, you should be more profitable, more relaxed, and you should have no
> problem sleeping.
Relaxedly,
Dr. Norm,
The Trading Doctor
>
>
> > 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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