plus or minus 5% stock trading (new to forum)

[daluder]

Hi all,

I am currently not in the market and am looking at different stratagies for short term trading. I don't think i have the heart for day trading so I am looking at a plus or minus 5% trading.

I will use 10k and pick a trade. I will then sell it if it goes up or down 5%. Or I also thought 5% up and 3% down.

I would like to hear from you on what you think about this. Also I was wondering if i can set that to automacly happen when the stock is purchased (limit stop and such). not sure what the term is for this type of trading.

Also i have looked at all of the online brokers and decided that ameritrade looks pretty good. The only thing is how fast is the stock purcased when you use market buy. it doesn't say online. Fedility said it is 1 sec and I am wondering if ameritrade is alot different.

Sorry for being long winded here but I have done lots of searches and these are my questions i haven't been able to find.

Thanks in advance.

[TSS]

STTG -

I have major issues with this strategy. You make the assumption you will be right more often then wrong. Trust me, you'll be wrong more often then right. In this market, you'll be lucky to be right with any type of frequency.

The very best trading systems and traders have a 60% win rate. That means they are right 6 times out of 10. Maybe there are better systems and traders, but they are outliers. Using a 60% win rate, every 10 trades, you'll make $3,000 and you'll lose $2,000 and net $1,000. Sounds great - problem is you should remember that out of 100 trades, you may see 20 losses in a row, a win and then another 10 losses before your string of wins come in - the distribution is purely random. Can you sit through the losses? It seems like a lot of work to not make much money.

Based on some of the things in your post I'll assume your a 3 out of 10 guy. That means for every ten trades, you'll lose $3,500. You'll win $1,500. You'll realize a loss of $2,000. After 100 trades, do the math....Hint - the outcome is the opposite of good.

Let's say you're a really good trader and get 50% of your trades right: You'll win $2,500. Oh, you'll lose $2,500. You net ZERO. After 100 trades, assuming normal distribution, you are no better off then when you started.

I recommend you flip a penny 100 times in a row and write down the results. While it will be near 50/50 in the end, review the journey. Now imagine every head is a win and every tale a loss.

Depending on the size of your portfolio, I would go with smaller trades, a slightly larger stop and let your winners run. You should look for trades that offer a minimum of a 2:1 reward / risk - personally I like 3:1 or greater. This means for every buck I risk, I stand to make at least 2. That offers me fair risk and a decent pay for my troubles. 1:1 - what you are proposing can't work.

Good luck.

[daluder]

thanks for the reply

so if you believe that the system wouldn't work what system would you recommend for a person that follows stocks and the news but is new to trading. Is it true that most short term traders end up losing? Should i be looking at long term?

[TSS]

First, it's not that I believe your system won't work - I just walked you through how it CAN'T work. Let me be crystal clear - if you follow that game plan you are going to be broke. That is a fact.

I would recommend a few books for you to start your journey:

1) How to Make Money In Stocks, by William O'Neil. Read it. take notes. Read it again. Repeat.

2) How I made 2,000,000 in the market, by N. Darvas. Read this every other month.

3) Reminiscence of a stock speculator, by Edwin Lefevre. Read this 2 x a year.

4) Secrets for profiting in a bull or bear market - S. Weinstein. Read it a few times.

5) The Battle for Investment Survival - G Loeb. Read 2 x per year.

6) methods of a Wall St. master - V. Sperandeo Read this a dozen times. take notes. repeat)

You are looking for a sure fire plan to make money without feeling the pain. YOU have to read, learn, get burned, lose money, make money, lose profits and repeat the cycle like everyone else. There are no short cuts.

I lost money for many years until I started to see what works for ME. Every trader is unique - I don't know what your time line is, how much of a loss can you swallow, are you more of an investor or trader?

There are tons of questions that I bet you don't know the answer to - if you buy a stock and it runs up 100% in a week, what are you going to do. if you buy a stock and it is down 10% 5 minutes after you buy it, can you stomach that/ There are things you need to figure out for yourself - no one has that answer for you.

You should be prepared to lose money. If you think you are going to make a lot of money when guys like Heebner are down 50%, you are flat out crazy. This is an impossible tape and I feel bad for new guys trying to figure this all out with all the noise out there.

Good luck,

TSS

[daluder]

thanks for all of the info.

[daluder]

Well i have been doing this for 2.5 months now and i am even money right now. I have been down 20% total and up 10%. I haven't made money. Just wanted to give an update.

[uuuio706]

Bump up then lurkCHAPTER XXVII 　　At the appointed hour the prince, powdered and shaven, entered the dining room where his daughter-in-law, Princess Mary, and Mademoiselle Bourienne were already awaiting him together with his architect, who by a strange caprice of his employer's was admitted to table though the position of that insignificant individual was such as could certainly not have caused him to expect that honor. The prince, who generally kept very strictly to social distinctions and rarely admitted even important government officials to his table, had unexpectedly selected Michael Ivanovich (who always went into a corner to blow his nose on his checked handkerchief) to illustrate the theory that all men are equals, and had more than once impressed on his daughter that Michael Ivanovich was "not a whit worse than you or I." At dinner the prince usually spoke to the taciturn Michael Ivanovich more often than to anyone else.　　In the dining room, which like all the rooms in the house was exceedingly lofty, the members of the household and the footmen- one behind each chair- stood waiting for the prince to enter. The head butler, napkin on arm, was scanning the setting of the table, making signs to the footmen, and anxiously glancing from the clock to the door by which the prince was to enter. Prince Andrew was looking at a large gilt frame, new to him, containing the genealogical tree of the Princes Bolkonski, opposite which hung another such frame with a badly painted portrait (evidently by the hand of the artist belonging to the estate) of a ruling prince, in a crown- an alleged descendant of Rurik and ancestor of the Bolkonskis. Prince Andrew, looking again at that genealogical tree, shook his head, laughing as a man laughs who looks at a portrait so characteristic of the original as to be amusing.　　"How thoroughly like him that is!" he said to Princess Mary, who had come up to him.　　Princess Mary looked at her brother in surprise. She did not understand what he was laughing at. Everything her father did inspired her with reverence and was beyond question.　　"Everyone has his Achilles' heel," continued Prince Andrew. "Fancy, with his powerful mind, indulging in such nonsense!"　　Princess Mary could not understand the boldness of her brother's criticism and was about to reply, when the expected footsteps were heard coming from the study. The prince walked in quickly and jauntily as was his wont, as if intentionally contrasting the briskness of his manners with the strict formality of his house. At that moment the great clock struck two and another with a shrill tone joined in from the drawing room. The prince stood still; his lively glittering eyes from under their thick, bushy eyebrows sternly scanned all present and rested on the little princess. She felt, as courtiers do when the Tsar enters, the sensation of fear and respect which the old man inspired in all around him. He stroked her hair and then patted her awkwardly on the back of her neck.　　"I'm glad, glad, to see you," he said, looking attentively into her eyes, and then quickly went to his place and sat down. "Sit down, sit down! Sit down, Michael Ianovich!"　　He indicated a place beside him to his daughter-in-law. A footman moved the chair for her.　　"Ho, ho!" said the old man, casting his eyes on her rounded figure. "You've been in a hurry. That's bad!"　　He laughed in his usual dry, cold, unpleasant way, with his lips only and not with his eyes.　　"You must walk, walk as much as possible, as much as possible," he said.　　The little princess did not, or did not wish to, hear his words. She was silent and seemed confused. The prince asked her about her father, and she began to smile and talk. He asked about mutual acquaintances, and she became still more animated and chattered away giving him greetings from various people and retailing the town gossip.　　"Countess Apraksina, poor thing, has lost her husband and she has cried her eyes out," she said, growing more and more lively.　　As she became animated the prince looked at her more and more sternly, and suddenly, as if he had studied her sufficiently and had formed a definite idea of her, he turned away and addressed Michael Ivanovich.　　"Well, Michael Ivanovich, our Bonaparte will be having a bad time of it. Prince Andrew" (he always spoke thus of his son) "has been telling me what forces are being collected against him! While you and I never thought much of him."　　Michael Ivanovich did not at all know when "you and I" had said such things about Bonaparte, but understanding that he was wanted as a peg on which to hang the prince's favorite topic, he looked inquiringly at the young prince, wondering what would follow.　　"He is a great tactician!" said the prince to his son, pointing to the architect.　　And the conversation again turned on the war, on Bonaparte, and the generals and statesmen of the day. The old prince seemed convinced not only that all the men of the day were mere babies who did not know the A B C of war or of politics, and that Bonaparte was an insignificant little Frenchy, successful only because there were no longer any Potemkins or Suvorovs left to oppose him; but he was also convinced that there were no political difficulties in Europe and no real war, but only a sort of puppet show at which the men of the day were playing, pretending to do something real. Prince Andrew gaily bore with his father's ridicule of the new men, and drew him on and listened to him with evident pleasure.　　"The past always seems good," said he, "but did not Suvorov himself fall into a trap Moreau set him, and from which he did not know how to escape?"　　"Who told you that? Who?" cried the prince. "Suvorov!" And he jerked away his plate, which Tikhon briskly caught. "Suvorov!... Consider, Prince Andrew. Two... Frederick and Suvorov; Moreau!... Moreau would have been a prisoner if Suvorov had had a free hand; but he had the Hofs-kriegs-wurst-schnapps-Rath on his hands. It would have puzzled the devil himself! When you get there you'll find out what those Hofs-kriegs-wurst-Raths are! Suvorov couldn't manage them so what chance has Michael Kutuzov? No, my dear boy," he continued, "you and your generals won't get on against Buonaparte; you'll have to call in the French, so that birds of a feather may fight together. The German, Pahlen, has been sent to New York in America, to fetch the Frenchman, Moreau," he said, alluding to the invitation made that year to Moreau to enter the Russian service.... "Wonderful!... Were the Potemkins, Suvorovs, and Orlovs Germans? No, lad, either you fellows have all lost your wits, or I have outlived mine. May God help you, but we'll see what will happen. Buonaparte has become a great commander among them! Hm!..."　　"I don't at all say that all the plans are good," said Prince Andrew, "I am only surprised at your opinion of Bonaparte. You may laugh as much as you like, but all the same Bonaparte is a great generall"　　"Michael Ivanovich!" cried the old prince to the architect who, busy with his roast meat, hoped he had been forgotten: "Didn't I tell you Buonaparte was a great tactician? Here, he says same thing."　　"To be sure, your excellency." replied the architect.　　The prince again laughed his frigid laugh.　　"Buonaparte was born with a silver spoon in his mouth. He has got splendid soldiers. Besides he began by attacking Germans. And only idlers have failed to beat the Germans. Since the world began everybody has beaten the Germans. They beat no one- except one another. He made his reputation fighting them."　　And the prince began explaining all the blunders which, according to him, Bonaparte had made in his campaigns and even in politics. His son made no rejoinder, but it was evident that whatever arguments were presented he was as little able as his father to change his opinion. He listened, refraining from a reply, and involuntarily wondered how this old man, living alone in the country for so many years, could know and discuss so minutely and acutely all the recent European military and political events.　　"You think I'm an old man and don't understand the present state of affairs?" concluded his father. "But it troubles me. I don't sleep at night. Come now, where has this great commander of yours shown his skill?" he concluded.　　"That would take too long to tell," answered the son.　　"Well, then go to your Buonaparte! Mademoiselle Bourienne, here's another admirer of that powder-monkey emperor of yours," he exclaimed in excellent French.　　"You know, Prince, I am not a Bonapartist!"　　"Dieu sait quand reviendra"... hummed the prince out of tune and, with a laugh still more so, he quitted the table.　　The little princess during the whole discussion and the rest of the dinner sat silent, glancing with a frightened look now at her father-in-law and now at Princess Mary. When they left the table she took her sister-in-law's arm and drew her into another room.　　"What a clever man your father is," said she; "perhaps that is why I am afraid of him."　　"Oh, he is so kind!" answered Princess Mary. 2009Wow leveling, wow power leveling, Cheap WoW Power Leveling Store, we professionally focused on providing World of warcraft Power Leveling service and offers 24/7 non-stop power leveling and wow gold service. With the quickest speed and best service we will satisfy your powerleveling aspiration for your game.

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