Technical analysis for new technicians

-o0(GoldTrader)0o- · 11-02-2009, 09:05 PM

Technical analysis for new technicians

Quote:

Originally Posted by Generic

I was blessed to live on Kauai for 4 years. Nothing else has come close!

Four years, well I guess that you know you have internet on Kauai, so you can trade if you can get away from all beach bunny’s.

Quote:

Can you comment on the making money part.

You still have to take care of living expenses. But if you have capital working for you, seasonal futures spreads is certainly a place to look.

Quote:

I would love to trade but I can't afford to spend the time to educate myself

I want to be a Doctor, but I don’t have time to go to medical school. Yeah I heard that before.

Quote:

What can you say to give me an idea of how many people succeed/fail in this venture.

Depends on there goals, everybody gets something out of it or so many people would not be doing it.

Quote:

What is a reasonable win/loss ratio traders might expect?

What is a win ratio. If you get out of something early with 20% gains say in three days and it goes on to make 2000% on your margin in eight weeks. Is that a win or a loss?

If you get stopped out down ten cents, and it falls a dollar after that in a week. Is that a win or a loss?

I don’t know what you are talking about. If you buy shares in a company at $100.00 it splits 4 for one and you get out four years later at $26.00. Is that a win or a loss ratio?

I do not have a clue what you mean. What do you mean win ratio and what does that have to do with anything. Is $100 a win on a thousand dollar move?

Suppose you put on three spreads with a margin of $500.00 each. It goes up and you add two more, it goes up some more and you add one. Then you sell all six of them at the end of the season, at return on original margin, of a few hundred or a thousand percent. Next you buy three and get stopped out with a loss of $50.00 per spread. One winning trade, one loss. What does this have to do with anything?

Quote:

Considering of course how well the good traders do.

Seems to me it would take a lot of small losses to pay one big winner. Where else is the money going to come from?

Quote:

I understand the ultimate risk is to loose all.

No that is not the ultimate risk. Why do they seal the windows in brokers offices?

Quote:

If you start with $x in you account I have no idea what the possible realistic reward might me?

If you start with your brokers minimum. When you get the hang of spreads, your first goal might be to take your original capital out . Once you are playing with the houses chips you, might feel differently about accepting risk.

Many traders start with too much money and burn out quick. Once they are out, they come back on a shoestring, trade spreads and do fine.

Quote:

Originally Posted by Ektrader

Bollinger bands are an integral part of just about every charting system

Most charting packages have a lot of garbage because they are easy to calculate. I don’t know if that makes it part of a system. If you run every oscillator that you can find everyday, you will soon see that most turn at the same time because they all use the same closing price as the next variable. Joe Ross in his book on spreads & seasonals goes into detail on how to use Bollinger’s for trading low risk calendar spreads.

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Site Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode