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<Now the question: Are there REAL people, with
spouses, kids, 2nd hand cars, mortgages, etc out there
who earn a 2nd income from trading.>
YES. I have a spouse, 2 kids, 2 cars, a mortgage, a new hot tub and a pool
that is being installed in two weeks. My goal is to make it a 1st income
instead of a second.
<For example, I am paper trading a "system" which
produces marginal gains in 1/5 cases. If I have put
my real money in the market on these stocks, I am sure
the losses would have skyrocketed. The Key: I am only
selecting stocks getting buy signals by being above
50-day high of close. How can I optimise this 50-day
holy grail.>
Do you have a way of telling what the market as a whole is doing?
Sometimes you just should not be trading the long side. The market or the
industry can go the wrong way and your screwed no matter how good your
breakout is.
The entry isn't the whole game. Its maybe 10-20% of it. I've just been
backtesting some new high entry strategies. After 5 days 40% winners,
after 10 days 45% after 20 days 50% winners. BUT having a good winning %
isn't the answer either. You can loose lots of money on a system that has
80% winners if they are all small and your losses are BIG. You can make
lots of money on a system with 20% BIG winners and 80% small loosers.
Don't optimize by going to a 49-day high of close. Optimize the system
with money management, stops, and exits.
Good Luck
Greg
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