Singing Pig

Hello, I like to read posts on these type of forums and find people’s views entertaining. I never post anything as you see from my rating but this one by RogerD triggered me. I think it is a little damning towards people who share their time teaching. I humbly offer this comment….

 

Re: Those who can do etc.

I’ve been an Investor in the markets since 1982. I have several properties around the world and I haven’t had a mortgage since I was 27 years old so I guess I can say “I can (and do)”. I’ve lived in the Caribbean for 12 of the past 16 years. Now I am back in UK, I spend 2 days a week teaching (for free) at a learning institution teaching budding traders how to trade successfully. I’m also a Consultant for several companies around the world who each pay me 5 figures per month to have me on their Board of Directors, which is a requirement in their own floatation. So your comments smack of sour grapes.

 

If you are a professional trader working for yourself, you can’t do it all day long. You would start over-trading and that’s where loses come in. I don’t know anyone who is making money that trades more than 2 hours a day, a maximum of 4 days a week (plus research of course which becomes a way of life rather than work). So you do need other things to keep you occupied and sharing your experience is a good way to stay sharp I find. It’s also nice to gloat. Also, I work with some people who are technically brilliant and will make great traders but simply don't have the funds to buy sufficient stocks to make it profitable. So they teach.

 

Re: if you were making 20% per month etc.

Yes, you would tell others. You want other people to know about it! That’s the very point about stock market success. Unlike other industries where competition can reduce the amount of business available to you, the stock markets need more and more people to participate. It is the volatility created by high numbers of people that make it work. The fewer people trading a stock, the less the stock will move and the less we can make on it. In this case, “more is more”. For tech analysis, you need everyone to see a pattern so they can all move on it at once. That’s what makes patterns predictable. As they say, if you have to squint to see it, it ain’t no trend. The trick is to see it before the others.

 

Btw – you can make well in excess of 10-20% per months. But only when you start trading larger stocks in higher numbers which are out of reach of the Joe Public Trader (and many teachers). Ie $50 plus per share/1000 shares at a time.

 

Advise to people wanting to learn how to trade? Only learn from companies who operate from a fixed location and have a permanent trading floor. Make sure you will learn on a real trading platform with live accounts. Never pay someone to teach you on a simulator or simply watch how its done! You need a minimum of $5K to trade profitably (otherwise you can’t open the necessary accounts). And $30 to make any kind of living at it. You WILL pay thousands for your education! Either by your losses or by paying a professional coach! Don’t look for someone to teach you how to make money, find someone who will show you how NOT TO LOSE MONEY! If you follow that rule, making money will happen by default. Do a web search and don't learn from people with bad reputations - duh! Finally, if you’ve been thinking about starting learning how to trade for more than 3 months… STOP and find another way to lose money! I’d respectfully offer, that you aren’t decisive enough to make it as a Trader. (Sorry, for ranting, be gentle if you reply :^)

$0.02

Hello shortie

You've spiked my interest do you have a website?

You mention TA do you only use this or some FA as well?

20% monthly is one hell of a compound return care to share some wisdom?

Hello Zulu, I’ve enjoyed reading your threads in the past. Btw – re: Channel Isles. If your portfolio is adequately plump, get yourself on a plane and discover the beautiful Caribbean. Belize, T&C and the Caymans are lovely this time of year and well worth the airfare!?! (If you get my drift.)

Back to your questions…. No, I don’t have a website. I have nothing to sell or promote and don’t seak exposure.

I love technical analysis. As you know, it ALWAYS works, except for when it doesn’t! :o) If I wasn’t trading I’d study it just as a hobby. Big bags of fun! (how sad am I?) But it’s somewhat useless by itself. FA is essential but then so is comparison to indices etc. There is so much information out there on the web etc., it would be a sin (not to mention a fiscal err) to ignore the big picture and collate as much knowledge as possible. So, in a nutshell, I use all info sources especially live NDF. All that is, with the exceptions of recommendations from friends and Brokers ;^)

Share with you some wisdom? Don't think there's much you don't know having read your threads over the last months (and months). Happy to submit my strategy to you for evaluation though. Feedback always appreciated - only a deadman stops learning. I love hearing what others would do differently.

(Don't know what level the readers are at, so I've included some basics, please excuse them if not required.) 

• Select strong stock in a strong sector (and vice versa) that correlates to the overall market.
• Price - $50 - $95 (real stocks) – (I use a different strategy than this one below when trading smaller stocks). Never trade stocks <$5.
• ADV – >1.5 million (keep it  <30 million or the stock gets sluggish).
• Learn to love shorting!
• ATR – At least $1.00 but <8% of price (don’t use a screener for this, do it manually on your platform (daily chart), it’ll take less than half a minute per stock).
• If there isn’t a good trade in front of you, sit on your hands.
• Beta - should be between 1.3 to 3.0.
• Trade in multiples of 1000, take it off the table in 500’s and tighten your stops.
• Keep asking yourself, “if I wasn’t in this trade, would I get in it now?” If the answer is “no” or “not sure” – get out.
• Use a reward to risk ratio of 3:1.
• Never trade more than 5% of your available capital on any one trade.
• yada, yada, yada (I’m ranting again).
• Physically write down a trading plan for each and every trade and STICK TO IT but let your profits run. If you need to change your plan, come out of your trade first, change it and then go back in.
• When a close friend gives you stock tips, thank him/her humbly and never let them know you are ignoring them. Do your own research!
• When trading intraday, if you are winning >75% of your trades for 3 consecutive days, immediately stop trading for at least 10 days.
• Always remember the first paragraph of this thread every time you win.

I find if I stick to this strategy religiously, I only have to be right 25% of the time to >break even. 50% and you are earning more than any of your friends. 60% - 75% is the norm. 

Can you share some strategy with me?

Interesting strategy,whats your typical holding period and have you read Van Tharps work?

A strong sector.......well I've posted some fundamental filters before so perhaps a bit of T.A.

See where the pro (big) money is going,run a comparison with say the ftse against individual sectors and you can see their sector rotation,

then run your shares against the specific sector and you can see what their buying/selling

The price action of the shares dictates your exact entry/exit

My strategy..........I just love selling options to get shares cheap and improve cashflow from the dividends also covered call when I own the stock

I had a bit of fun with a prominent BMV trader(property) this is what i told him

I routinely buy shares 15-50% BMV (as he does with property).So in order to do this I sell an option typically5-10% below current price (using technicals for timing,trend etc,and various fundamental screens for selection of stock) looking to take as much premium as I can get so 7-9 months expiration (example share at 500p sell 460 put at 78p 8 months expiration)so my purchase price ignoring for simplicity commissions is 460-78=382p or 23.6% BMV

depending on your aggressiveness you can multiply this selling 3 contracts per 2000 shares or even 2 for 1,now a lot of the time I just keep the premium as the share rises the few that don’t are helped funded by this premium,but it doesn’t stop there once I own the share I sell covered calls against it again producing income 2-5 month expiration and going as high as 3 for 1 on occasion,my goal is to get the shares and continuing income for nothing from the option premiums,my holding period is often many years with no intention at all of selling although I protect the portfolio (trester)and individual shares at a certain point.

"I love technical analysis. As you know, it ALWAYS works, except for when it doesn’t! :o) If I wasn’t trading I’d study it just as a hobby. Big bags of fun! (how sad am I?)"

The stockmarket has fascinated and captivated me since I first became interested in it some 20+ years ago,I spent the first year saying to myself can you really do that?does it work? and the answer was usually yes,so another sad case here.....but were not really sad as i expect you get as much enjoyment out of the markets as I do,money is a nice side product from it

A couple of thoughts on your trading shortie

Your stops are much tighter than mine,not necessarilly a bad thing.What multiple of ATR do you use/

Beta its always been my understanding that this is very unstable,using Dremans stocks particularly high yield you get a skewed distribution less downside more upside protection,ideally though Buffett type stocks with good return on capital and strong business model are best for me

Do you use options as protection?

ie buy share and option about 3 months expiration 5-10% OTM,quite cheap insurance and prevents catastrophic loss,many shares stop you out (especially tight stops)and then turn round into profit.

John Sweeney's book maximum adverse excursion is very interesting in stops,he analyses a series of his trades and plots which ones go into loss initialy and then turn around,at a certain point you can capture the majority of profits whilst limiting the big losers,not perfect of course as conditions aren't stable

Thats all really sounds like its all working well for you,still curious about your time frame if you get a chance to read this

ah-ha! I recognise this strategy. You are either a lady from California called TJ? or maybe one of her deciples?

You have me at a disadvantage, sir! (Thank you, but no names please.) Who and where are you?