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Had a good target. Was in for the flash to the upside. +51
Thought of quitting for the day. This was just before the opening.
Trade 2
- 15
Trade 3
+30
Turns out I was a touch early and too tight on my stop for the 2nd trade. Too rangy, was fortunate to get the 30 on this one.
Thats it for the day. Seems what I have been working on these last 2 weeks is coming around. I am really looking at bigger moves, when conditions are favourable, and the risk management.
Satisfied with my patience today. There were times when I was in teh trade that I was itching to tighten my stop... Trade 2 crashed almosrt immediately.
But trade 3 needed time to work. Was up +19, down to -7, back to +28, pullback, then target. As it was, touched 97.44. 30 ticks right on.
I had never given technical ananlysis much credit, as the investment propoganda that I have been exposed to in all my years in wealth management has been biased toward value investing. However, value investing, or buy and hold stratagies are most beneficial for the manufacturer of the investment products. The client receives a reduced risk profile, however, also, very limited upside potential. The very best mutual fund managers become hedge fund managers, unless they own the mutual fund. Met a MF few owners in Canada, and during the early 90's ( has it been that long already) and are they astute investors? Good money managers? Nope...graet at marketing and sales. Best money manager? Richard Dreyhaus...but the guy looked like he slept in his clothes. But his ability induced the company I worked for to let him manage his own Mutual Fund with 100 million of client money. Did great too, untill the Dot.com meltdown of 2000. Proubly he is on futures.io (formerly BMT) somewhere using a different handle, trading for his own account.
1 invesmnent paradigm he used was buy high, sell higher. He wanted to see momentum in a stock, a positive out look, expanding earnings.
Day traders do that every day. They buy the trend, they want to see momentum to get into a trade. After all these years, I finally get what he was talking about.
I signed up for the traders expo in Vegas in november. Want to check out stuff htere, listen to a few speakers in the breakout sessions. Talk to some of them face to face. Maybe meet a few fellow futures.io (formerly BMT) ers.
7 trades today.
Made 2 mistakes. Got my stop hit on my second trade, and , broke my own rule and got back in. And got hit a second time. Was my own fault. Mistake 1.
My rule is....Wait 15 minutes to trade after a losing trade. There will be another setup. There will be.
So after that, i waited the 15 minutes, (well 13 minutes and 12 seconds) watched and waited and got my signal.
After 4 trades I was up 6 ticks.
+13
-16
-16
+25
+9
+27
+22
-----
+64
Trade 1 , I reduced my target, as I was not fully convinced of my trade.
Did the same on trade 5, as I didnt want to give back the previous gains on the trade. But, that was a mistake on my part. Mistake 2. The reason is because I should not let the previous trade dictate the next trade. (Only the timing, if it was a loser). Each trade should be based on its individual merits, not what my P and L is for the day. Thinking of P and L will inhibit my trading, as today can attest.
I dindt write this, but I thinks its pretty good anyway.
A party of traders was climbing in the Alps . After several hours they became hopelessly lost. One of them studied the map for some time, turning it up and down, sighting on distant landmarks, consulting his compass, and finally the sun.
Finally he said, ' OK see that big mountain over there?'
'Yes', answered the others eagerly.
'Well, according to the map, we're standing on top of it.'
So you're basically saying value investing is the most profitable for owners and managers of the investment products, i.e. mutual and hedge fund managers. I think a lot of us retailers had the sneaking suspicion Thanks for confirming. I wonder if most prop firms have disguised handles doing "research" here at futures.io (formerly BMT) also..
I think the best mutual fund managers become hedge fund managers. That is the veiw of Van Tharp, and I agree with that statement.
A Hedge Fund Manager has to produce every year, and in exchange, generally gets a bigger piece of the action. The more he makes, the more he gets.
In my limited experience, a hedge fund manager has a soft hurdle, say 5% for the client, and then gets a percentage of the gains. 20% and higher is some cases, from what I have researched.
Fund or pension plan managers earn a flat percentage, from .25% to up to 1.5% depending on the amount invested. This is on the reatail side of the business.
Wholesale is different...smaller margins, but much larger amounts.
Not sure of what the US experience is, but from my understanding, it is similar.
i was also under the impression, that, some of the funds are so big, that is actually difficult for the managers to handle the size of the trades they need to keep up with.I mean, if you have billions in your hedge fund, is that too much?Interesting topic
I know thats one thing we look at in Canada. If a fund is too large, then it cannot respond to the market, and they have to conscious of sells because it can affect the price or the investments they hold. There are more Mutual Funds on the TSX (canadian market) than there are stocks trading on the TSX.
Hedge Funds are different. Lots of leverage, so a few billion in a hedge fund can create problems when it come to entries and exits. I expect they trade much longer, as commissions for too many moves would be a killer. An individual trading for their own account is way more nimble, and can get prices and captures moves that a big fund cannot.
I think I rather look at why traders succeed as oppossed to why traders fail.
To illustrate, what is the best way to determine money is counterfeit? You get a a bill that you know is real, and compare teh others to it.
Shouldnt we do the same with trading? Identify the successful trader and pattern our process after the success? So first, we have to determine the type of trsder we want to be. Everyoner is good at something, so we need to identify our own strengths and minimize our own weaknesses. Much easier said than done,. We thus need to rely on people we trust, because none of us can trade successfully in a vacuum. At least, I know I cannot.
Took 7 trades today...
2 stops... First trade wasnt the greatest entry, and it was premarket with little volume. Have to reevaluate my strategy for pre opening.
my second stop was just the result of too tight a stop. Had I given the trade a little more room, I would have been fine. That happens sometimes.
The good part was that I was still confident of my analysis and I re-enterred.
My last trade was a not a mistake, but anunfortunate incident. Got a phone call right when I placed a trade, from my mother who needs to have an operation. So I couldnt manage the trade, because i was on the phone. Closed it out manually for +3.
+36 on the day
Bummer I missed that last trade, or rather had too close it out early. Would have been good.
Thanks for confirming. I wonder if most prop firms have disguised