I'd like to amend to my daytrading comment. You should keep each position to a small % of your portfolio because the market is very choppy. And have high % of cash.
Same thing as a programming language; in this example a way to automate trades.
So, for example, a trailing stop loss would be implemented something like (in my fake scripting language) :
If $market_price is = $prev_market_price
then
$market_price == $prev_market_price
done
So every time the MG data is updated, the security is either sold if it drops more than 5% of the previous market price; or the previous market price variable is updated.
Be careful with out there... I broke my own rule for not taking large position in this choppy market by buying WB last week.
I was impatient with my performance (I was up about 4% since being a member in July '08). And I wanted to play the bailout plan by buying WB. (Like Cramer, I believe in Bob Steel's estimation of WB's bad loans and wasn't aware that JPM significantly wrote-off WM's option-ARMs after it bought WB.)
It costed me dearly, dropping me from 19% rank to 43%.
Back to the original post......I couldn't agree more. Take every single profit you get right now. And probably until next summer. This bail out is just going to be a dead cat bounce. Take your profits and sit in cash!
Right on, themoneyman. My main goal isn't to outperform the S&P 500, but to earn 15-30% annual return with as little variability as possible. In this bear market, I think I can only achieve this goal by taking profits as they come and limit the losses... As always, you're the Master of your own Fate.
FYI. I had bought EEV (with real money) and SKF aheading of tonight's Senate voting. Let's see what will happen tomorrow.
Top 3%
Gurughantal
Oct 01 at 11:01 ET
I agree with you about day-trading but i like to sell either at the end of the day or beginning of the day.
Top 2%
MasterOFate
Oct 01 at 11:16 ET
Gurughantal,
Would it be nice to do "trailing stop loss" order on this website?
Best of luck with trading,
You're the Master of your own Fate
Top 1%
V4Vendetta
Oct 01 at 11:47 ET
What MG really needs is a scripting language to automate trades. Then the community could implement all sorts of interesting features on our own.
Top 2%
MasterOFate
Oct 01 at 11:49 ET
I'd like to amend to my daytrading comment. You should keep each position to a small % of your portfolio because the market is very choppy. And have high % of cash.
Top 2%
MasterOFate
Oct 01 at 12:34 ET
V, I'm not much of a techie to know what a scripting language is. I'll take your words that it could do the job.
Top 1%
V4Vendetta
Oct 01 at 1:46 ET
Same thing as a programming language; in this example a way to automate trades.
So, for example, a trailing stop loss would be implemented something like (in my fake scripting language) :
If $market_price is = $prev_market_price
then
$market_price == $prev_market_price
done
So every time the MG data is updated, the security is either sold if it drops more than 5% of the previous market price; or the previous market price variable is updated.
Top 2%
MasterOFate
Oct 01 at 2:45 ET
Be careful with out there... I broke my own rule for not taking large position in this choppy market by buying WB last week.
I was impatient with my performance (I was up about 4% since being a member in July '08). And I wanted to play the bailout plan by buying WB. (Like Cramer, I believe in Bob Steel's estimation of WB's bad loans and wasn't aware that JPM significantly wrote-off WM's option-ARMs after it bought WB.)
It costed me dearly, dropping me from 19% rank to 43%.
Top 2%
themoneyman
Oct 01 at 6:02 ET
Back to the original post......I couldn't agree more. Take every single profit you get right now. And probably until next summer. This bail out is just going to be a dead cat bounce. Take your profits and sit in cash!
Top 2%
MasterOFate
Oct 02 at 12:06 ET
Right on, themoneyman. My main goal isn't to outperform the S&P 500, but to earn 15-30% annual return with as little variability as possible. In this bear market, I think I can only achieve this goal by taking profits as they come and limit the losses... As always, you're the Master of your own Fate.
FYI. I had bought EEV (with real money) and SKF aheading of tonight's Senate voting. Let's see what will happen tomorrow.
Top 1%
DowJonesDave
Oct 02 at 5:31 ET
I just held overnight for the first time in quite a while. Fast trades are the key.
Top 2%
MasterOFate
Oct 02 at 10:02 ET
I've sold my EEV and SKF for this morning.