Psych Capital Share Discussion Threads

[martini] 11/4/2002 20:51

Nice one :)

[moonblue] 11/4/2002 20:40

The VOD board looks to be increasingly taken over by day traders,you can tell be the surge in the number of messages, that's what happened to Balty just before its price collapsed to near nothing.

So here are ten hot tips for you day traders:-

(1) Speed is important.

Try to trade the entire Techmark index before lunch.

(2) Consider alternative financing.

Don't overlook the children's pocket money, golf club funds, credit cards, loan sharks and crime as ready sources of investing cash.

(3) Place dangerous implements well out of reach.

Especially firearms!

(4) Good information can come from anywhere.

A chat-room tip from a stranger -- ESPECIALLY WHEN IT'S IN ALL CAPITAL LETTERS AND FOLLOWED BY FOUR EXCLAMATION POINTS -- CAN BE WORTH MILLIONS!!!!!!!!

(5)Diversify your holdings.

Put your life savings in another stock every five minutes. Take out a second mortgage and invest it. You'll pay off the first one quicker that way.

(6) Don't tell anyone that you're day trading.

Especially your wife.

(7) Don't neglect personal hygiene.

Take a bath at least once a month - twice if you're trading Geo.

(8) Don't forget to have fun.

Hit the Bulletin Boards and post "Let's short this *#$*!% stock" on all the day's big gainers.


(9) Be daring.

Bankruptcy is a learning, growing, character forming experience.

(10) Plan well ahead.

But rapidly discard all plans if you see another great risk opportunity looming.


Good Luck

[theblackmamba] 10/12/2001 08:30

equities - swing trading ie 0-8 days
experience 5 years, 3 of which have detailed trade(2480 trades) analysys.

rule 1 - do your homework thoroughly. each night i go through 1000 charts coming up with a buy/short shortlist. i put them in my share watchlist, then don't look at the charts again during next trading day. if they reach target price you buy/short

rule 2 - keep losses small. people say you should aim to lose 2-3 percent of your pot per tarde. to me that is way to high. if you have 6 losers in a row thats 18percent lost. i try to keep the loss under the average loss of losses over three years. this means each loss is under 0.1 percenmt of pot. can't go bust this way, but also can't get rich quicklly either.

rule 3 - have confidence in yourself. i know it sounds arrogant, but i have charts of my performance on the walls, and a screensaver of where i want to live on spare computer in order to motivate me each day. imo you have to believe in yourself coz no one else cares. i must admit, im stoppimg reading btrading threds etc, as there are too many opinions. the only one that matters in the end is yours.
you decide to buy, so you mjust choose your poiint of get in, and you must choosev and do your stoplooss.

[alchemy] 09/12/2001 21:36

Straight from LC's course

Don't trade more than 2.5% of your pot on any one trade.

[renda2] 09/12/2001 21:34

Hanging up my spurs already!

[clem] 09/12/2001 21:19

Dont drink and trade! :)

[dead cat bounce] 09/12/2001 20:24

Long term members of this BB will probably recall many threads about how people trade. I am still facing problems attaining the discipline needed to successfully trade index futures and I was trying to formulate some simple rules that would be easy to remember and more to the point, easy to keep.
Here is a first draft. What do others think?

Rule 1. Only enter low risk trades
What does this mean? It means only entering a trade when there is overwhelming reason to believe the price will go in the direction you predict. Whatever method of trade entry you use, it has to be solidly behind the trade. No wishing and hoping, no half completed patterns, no breakouts on low volume, no trades against the trend, just solid evidence. It also means that the trade should yield 3:1 risk/reward ratio. This ratio is defined from where you would put your stop. And the stop MUST be placed in a logical place ie, just below solid support if the trade is long, above solid resistance if the trade is short. This means that the trade entry must be sufficiently close to the stop to allow the target exit price to be 3 times further away from your entry than the stop level is. If these figures don't work out, then you don't take the trade.

Rule 2. Rigidly stick to your stoploss.
Self explanatory really. But how often, when you have had only a mental stop and it has been breached, have you then let it go just that bit further in the hope the trade will come back in your favour? And the manageable loss has turned in to a big hurting loss. Don't let it happen.

Rule 3. Stop trading at maximum daily loss.
This means setting a maximum daily amount you are prepared to lose (2% of trading capital is recommended). If you lose this amount YOU STOP TRADING FOR THE DAY, no matter what.

(Acnowledgements to Mr Potatohead for rule 3)

Now I know that there can be many trading rules, but in the heat of daytrading, you need to keep things as simple as possible so that as few things as possible can go wrong.

I ask others to write their own rules, maximum of 3 in order to keep it simple and memorable, to help maintain the required discipline while trading. Lets see what we can distill as the 3 rules of successful trading.

Some rules will be better suited to equity trading so state which your rules apply to when posting them.

dcb