And believe it or not: I’m actually just trying to help i.e. I"m not taking the piss now like I did in my first post on your thread!!! LOL!!!
Negative month is nothing bad - it just happen from time to time. As I said, in specific market condition every strategy has its bad time ;). Sure, I can optimize procedure of indicating trend but it do not secure me from negative months. What do you think about it?
Well that is true of course. As long as OVERALL for, say, one year the thing is profitable monthly ON AVERAGE. That’s pretty much how my own core trading system performs unfortunately. All depends though on your needs I suppose i.e. I’m in a situation right now where I have to pay bills MONTHLY so I no longer have the luxury of being able to take losses in any given month or sitting around waiting for profits hence my now trading something else intraday.
Of course I agree with you about that. Simply, in this market conditions your strategy fits better then mine.
I also have my trading diversified between couple strategies/products.
This strategy is my longterm alternative for investment funds;)
Could you share what else do you trading?
Sure.
Got two threads going and that’s all I do. One is Connors’ TPS system and the other is trading pivots (which has now turned into a combination of my own method as well as Welles Wilder’s Trend Balance Point System). Nothing more to it really.
The lossy month is something normal
I do not understand why losses are taboo. Although most people are losing money on the stock market, hate meets them instead of support. I have already written about it and will mention it again - win rate is not a measure of a good trader. Trading is not a sprint, rather a marathon. Only the hardest ones reach the finish line. The best traders in the world have not only losing days, weeks or months, but can also count the year in the red. Is it wrong? Of course not, the strategy had worse period. Do all companies always earn? Those who are in business know exactly how it is.
I often say that the best test for a trader is how he goes through the period of losses. Is he combining? Is he depressed? Is he changing the strategy? It is in these moments that we show our predispositions to trading. If we trust our strategy, we should consistently implement the assumptions and wait for the end of a worse period.
Trading is an occupation for many, but not for everyone.
When you understand that loss is a normal condition and that there is no super strategy that always generates profits, then you will take the first step towards success on the stock market.
Rule # 5
Remember about the barbell rule.
Keep an appropriate ratio in the portfolio between high risk and hedging projects.
If you’ve ever been to the gym, you’ve probably noticed that the same weight is applied to the barbell on two sides. Thanks to this, lifting the barbell we are sure that it will not overwhelm or crush us.
It’s the same in the world of investment. If the funds are invested only in high-risk instruments, there is a high risk of losing all money in spite of potential high profits. On the other hand, if we only save money on deposits or bonds, we make the savings slowly, eaten by inflation and we do not give them the opportunity to multiply.
The golden mean is to choose the security and risk instruments so that our barbell is stable and allows you to beat new records in bench press.
Thanks to this approach, you take care of the security of capital, but on the other hand, you give yourself a chance to earn above average money.
Invest properly!
Slowly going back - last week.
Well as I may have said before on your thread:
You get ten out of ten from me for perseverance and trying and sticking with it and for constantly updating your thread.
Now I just WISH you would start making money!!! LOL!!!
But anyway. Well done anyway.
(If nothing else at least you know ONE person is reading your thread i.e. I have the same problem!!! LOL!!!).
Nice joke Dale
Thanks anyway, good to know that someone is reading this
06 I understand that the stock market is associated with the possibility of losing money.
Such a simple, yet significant part of investors or traders do not understand this until they lose their funds.
The stock market is a great place that gives you amazing opportunities to get rich. But there is nothing for free. The more we want to earn, the more risk we have to take.
There are no shortcuts.
One could write a book on the approach to losses, but a man learns from his own mistakes.
First, the hopes for quick and high earnings without risk will fall in you, and then you will understand that loss and profit are closely related.
Remember that capital on the stock market is necessary to earn money. Therefore, if you risk a lot and lose a lot, in the end you will not have anything to trade.
Finally, we will remind you of two famous rules of Warren Buffett:
Rule No. 1
Never waste your money
Rule No. 2
Never forget about rule # 1
#6 Invest in accordance with your character
Some prefer peace and security, others risk. Do not invest in what is popular, but in what is consistent with your approach and character. The funds are meant to work for you for years, which is why you need to feel the psychological comfort. In the end, it’s only you who are responsible for your money, so you have to answer the question if the project meets your expectations.
This doesn’t look great.