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There are people out there that successfully day trade. They are very, very
rare. There are far more people successfully position trading.
But what a great business! Can you think of any other business that can
produce "experts" in such a short period of time? In many cases these
self-appointed experts have less experience than their customers.
Trading requires the same elements to be successful as any other business -
hard work, study, CAPITAL, planning, perseverance, time,etc. There is no
magic bullet, and there is no dispenser of magic bullets. If I do ever find
one, believe me , you'll never know about it!
Regards,
Tom Alexander
Alexander Trading & Management
----- Original Message -----
From: Jeff Kingery <taotrader@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, October 04, 2000 10:08 AM
Subject: [RT] RE: Re: Richard Dennis and Aberration
> Bill E. wrote:
>
> >...and if you take that very sensible logic
> >and advice to its ultimate conclusion
> >you end up day trading a single market!
>
> Well done, Bill! I loved the way you took the wisdom of Mike's excellent
> post and twisted it into yet another sales pitch for your book! However,
> although you refer to "logic," your statement is a "DNF," i.e. Does Not
> Follow (unless you've got books to sell!).
>
> The issues to which Mike referred will arise whether one trades a dozen
> markets from daily charts or a single market from tick charts. One big
> difference is that in the latter case it happens much more rapidly.
Faster
> is not necessarily better. It will be better for some, and worse for
> others... in some cases much worse.
>
> One can make a strong case that slower is better for those who are
"learning
> the ropes." It can be very difficult to fully evaluate, psychologically
> process and learn from each and every trade when you're making two or
three
> trades a day, day after day. Also, a shorter time-frame generally yields
> smaller average trades, which give less margin for error. This can be
very
> costly for a new trader, because the less practice you've had at trading,
> the more mistakes you're going to make. If you're new to trading it's
quite
> possible that you will make mistakes on every single trade. Having time
to
> learn from your mistakes before repeating them could save a lot of $$$,
and
> perhaps a lot of grief.
>
> I'm sure we'll now hear from Bill that nothing could be further from the
> truth, and that day-trading the T-bonds is the best of all possible
worlds,
> because he wants to sell his book. Not having seen his book I don't have
> any opinion on its value. However, these endless sales pitches about the
> "best" way to trade miss the point completely. There simply isn't any
> "best" way to trade. The question is not "What's the best way to trade?"
> but rather "What's the best way for <me> to trade?" It's quite a
different
> question.
>
> My guess is that for <most> new traders, the best answer is <not> going to
> be "Day-trading the T-bonds using a purely discretionary method."
>
> Your mileage may vary.
>
> Cheers,
>
> Jeff Kingery
>
>
>
> Mike wrote:
>
> <snip>
>
> > Remember, it is never enough to test a trading system,
> > see a 30% drawdown and say "well, that's not too bad -
> > I can handle that." Make sure you can handle that
> > if you're in the drawdown for 6 months to a year,
> > and you're required to continue to put trades in,
> > day after day, with the result of most trades
> > being losers. That will happen with EVERY TRADING SYSTEM
> > at some point (although the drawdown duration will differ)
> > - do you have the stomach to endure?
> >
> > Make absolutely sure you can say "yes" before you
> > put a cent into any trading system and start trading.
> > Just my two cents.
> >
> > Michael Strupp
> > Chicago IL
>
>
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