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This whole thread on stops has tended to polarize people when in fact, the
best use of stops is when you utilize the ever changing fundamentals to set
those stops. I'm not going to bore the list with examples but obviously
the mood of the market changes hourly if not by the minute and the reasons
for those changes are part of the fundamentals. So, I set a stop in my
head and if it is reached due to a knee jerk reaction to something, I may
well move it away. The question has to always be, 'would I buy it here?'
Now, if my stop is reached and there are no fundamentals driving it that
are new, I put in the order and exit. I don't put stops into the system
for obvious reasons but if you can't trade full time, you may have no
choice. Whatever else you do, if you're an equity trader, *never* enter a
stop to the system on thinly traded issues or you are likely to be stopped
out nearly every time. (I am currently working on a program to enter my
trades when a corresponding alert is triggered).
Here's to a great trading week to all members,
Bob
At 11:53 AM 6/27/99 -0600, Earl Adamy wrote:
>I find that golf and trading complement each other very nicely. I frequently
>walk 9 holes very early on our mountain course before sitting down to trade
>and find it energizes me while greatly lowering my stress level. Perhaps the
>secret is in not taking it too seriously ... a state of mind which comes
>easily to someone relatively new to golf who took it up relatively late in
>life. Like anyone else, I blow the usual easy shots but only my worst scores
>frustrate me. Generally, I content myself with playing within a reasonable
>range plus/minus of my considerable handicap. For me the trading benefit is
>the total concentration required which blots out the world of trading.
>
>And I do find that golf is a great boon to allowing trades to run on
>"autopilot" with appropriate stops. In fact, I find I often make higher
>profits while playing 18 holes than I do "tending" the flock.
>
>Earl
>
>----- Original Message -----
>From: nwinski <nwinski@xxxxxxxxxxxxxxx>
>To: Ira <ist@xxxxxx>
>Cc: Stewart Taylor <staylor@xxxxxxx>; <realtraders@xxxxxxxxxxxx>
>Sent: Sunday, June 27, 1999 2:27 AM
>Subject: Re: Stops
>
>
>> Ira wrote:
>>
>> .... On many occasions I have used OCO orders once in a position and
>then gone
>> and played golf, and not worried about it. If my target was hit, I was
>out, and
>> if I was wrong, I was stopped out.
>>
>> NW: Trading is easy, golf is difficult. Let's talk about the
>psychological
>> dynamics of golf and its impact on the mental state of traders. It is said
>that
>> golf is a game where you compete against yourself. If you play golf like
>most
>> people do, every time you play golf you lose to a bad player. Now think of
>the
>> frustration and negative feedback that sort of conditioning sends to your
>brain.
>
>
>
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