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<DIV><FONT size=2>Looks like the next stop on the OEX is the 680
area?</FONT></DIV></BODY></HTML>
</x-html>From ???@??? Thu Jul 29 12:16:42 1999
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From: "BrentinUtahsDixie" <brente@xxxxxxxxxxxx>
To: "Real Traders Forum" <realtraders@xxxxxxxxxxxx>,
"Group, Real Traders 2000" <Realtraders@xxxxxxxxxxxxx>
Subject: Re: Exits? - or the frog.
Date: Thu, 29 Jul 1999 11:46:40 -0600
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Status:
>No but exiting with a minimal loss is critical if you want to play again
>tomorrow.
***Yes, but exiting with a maximum gain is good for your love life.
>Granted that you must have more winners than losers OR, preferably, larger
>winners than losers but you will still lose money with 100% winning entries
>if you don't have a consistent exit strategy.
***A winning entry? What's that. There's no proof for the last part of the
above statement.
>Then I guess that you could argue that flipping a coin would improve a
good >many traders entries as well.
***Any guess us a good as a mile.
>Definitely. Fear and greed probably don't cause many traders to make bad
>entry decisions but they sure do lead to bad exits. That is where the
>proper use of stops come in. And not just for novice traders. If you find
>a profitable, experienced trader, you'll find a trader with well defined
>consistent stops.
***Gee, then I guess that stops (exits) must be equally important as is
entries.
>No way. Take a simple 10/20 simple moving average crossover system on >the
S&P 500. It'll make money except for the periods where the market is >moving
sideways. Add a trailing stop that is at least 1/2 the daily >volatility and
watch what happens to profits and losses. A greater portion >of the
profitable trades is retained and losses are capped.
***Way, Get a frog with wings and it wont bump its bottom when it jumps. In
other words what has this got to do with what was talked about. The point
was about flipping a coin for entries.
>Exactly - that's what stops are all about.
***Dang, we agreed about something???
>Pyramiding is a very profitable approach IF you have deep pockets and can
>stay with a trade during normal market volatility. And this can be instant
>ruin if you are in a market that can go limit against you for a number of
>days such as any of the ags or softs. It's a highly risky strategy with a
>huge payoff if you are right. Personally, I'm more interested in
>minimizing risk rather than adding to it in the futures market.
***Who said anything about pyramiding? Unless you define adding to any trade
as pyramiding. I will leave it up to the likes of Richard Dennis(the famous
trader that I was referring to) or Warren Buffet to defend this idea. Have
you made 200 million lately?
I am done with this ridiculousness. You coin flippers feel free to flip
away.
Brent
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