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Thread: Some advice for Tripping

  1. #1
    Siriusowner is offline
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    Some advice for Tripping

    Now I have time. Follow these small rules and you will make more money than holding SIRI and riding its ups and downs:

    The point of trading is to turn a profit, so why put money in a stock that is not moving? Doing so would mean risk without reward. Furthermore, an open position showing a loss should be cut immediately because small losses are the KEY. Your objective is to expect profits that outweigh expected losses by at least a 3:1 ratio. Losses are a part of the game, so you must respect them and keep them small. Therefore, only get in stocks on the move with the intention to ride them into profits and exit upon the loss of momentum. It is at this point in the trade that we TAKE THE MONEY AND RUN!!

    Be in no hurry to put on trades. Trades placed out of boredom lead to bad habits and poor results in the long run. This leads to a loss of trading confidence, which is even more damaging than losing dollars!

    Over time (weeks, months, years), be absolutely sure to keep your down days and weeks as small as possible. Growing your account happens when you stay in winners while they run, and cut losers at the first sign of negativity. Big winners are not for offsetting big losers. Wealth comes from big winners, so keep the losers small.

    TRADING STRATEGY - HAVE YOU DEFINED YOUR TIME FRAME ?

    I know, I know, you are an "investor". Honestly, that is BS.

    If you really want to make money, first of all, decide your timeframe for trading or "investing" ("I am on it for the long run", " I am on it for 1, 2 or 3 years", "I will retire before I sell", "I am a long term investor", etc... DO NOT COUNT). This is important because it not only determines position sizing, but also where to get out of your positions. Deciding which approach works for you will help you to determine which exit strategy fits your "investing" plan best.

    Regardless of which timeframe you pick, the key is to keep your risk profile for every position in check.

    THE FOLLOWING IS MY "SEXY" SWING TRADING STRATEGY... as you called it:

    When swing trading, your position size will usually be smaller than when day trading due to the fact that you are looking for a larger move. Your stop loss orders should be placed wider than when day trading for this reason. Naturally, your profit targets are farther away, so patience is a necessity.

    Stocks often gap, so here are some guidelines for swing trading:

    If a stock gaps 1-2%, enter 1/2 of the intended position size and monitor the stock's behavior before adding to the position.

    If a stock gaps 2-3%, only enter 1/4 of the intended position size.

    If a stock gaps over 3%, it may be best to pass on the trade entirely, as the risk/reward profile of the trade is no longer the same.

    Here are a few rules of thumb to help determine exits when swing trading:

    If the prior day's low is taken out on the breakout day (or high for shorts), exit the trade.

    Once a trade is held overnight, place a stop-loss order no further away than below the recent consolidation area, as a move beneath it would signal a failure.

    Once a trade is profitable by at least 10%, never give back more than half of the open profit. This helps to avoid the frustration of letting winning trades turn into losing trades.

    Once a trade is profitable by at least 5%, move the stop-loss order to breakeven on a closing basis.

    Partial buys and sells can be very helpful. If a stock breaks out in a sluggish fashion, consider entering only a partial position. If a trade is exhibiting little follow-through after the breakout, decrease the position size.

    Always monitor the health of the overall market, and the health of your positions. When things aren't acting right, either lighten up or go to cash entirely to preserve capital. It's easy to get back in!

    These are some general guidelines for any trader with a swing trading strategy to determine exits that fit their timeframe, and are intended for educational purposes only as you seek to define a swing trading strategy that suits your needs.

    Thank you.
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    Last edited by Siriusowner; 07-08-2009 at 01:16 AM.

  2. #2
    trippingthespeculatingpos is offline
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    hey i appreciate the info so but if i followed those rules i wouldnt be up 600 percent with behl, i should right out a rule list for you, how to not settle for measly 10 percent gains. not every1 has the same style s.o. look s.o. u know as well as i siri will be worth twice this much, just not over night till then we might actually go down, but why play the dumb game just hold and wait it out, its gonna get there. just so you know s.o. i am thinking of selling siri to avoid having the money lcked up for awhile but if it holds .40's which IS still a possibility then i will keep it, if i think its going to break .40 then i will sell.
    Last edited by trippingthespeculatingpos; 07-08-2009 at 08:06 AM.

  3. #3
    john is offline
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    You want a no risk way to make 10+% on your money? It is easy and only takes some organization, I love the system and if you play it right and by their rules there is shit loads of money to be made without worry.

  4. #4
    trippingthespeculatingpos is offline
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    no risk way? there is no such thing, everything has risk, thre is no risk proof system. look i apreciatte all the info and i actually follow it for stocks i dont have a lot of confidence in, but if i believe in the company and the product they offer and how they can still grow then i will not be so quick to sell. which has worked better for me than just selling at an y sign of short term weakness. i bought behl at 0038 it then fell to 0015, what would u guys of done? would you of held it till it turned and ran to 03 or would u of just sold in fear of losses?

  5. #5
    john is offline
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    tripp, how risky is it to open up a CD. Believe me it is easy and no risk, I have been doing things like this for years.



    P.S. I am not saying it is as good as the last one I told the guys at Seeking Alpha about, this one actually takes your money to do it. Also this has nothing to do with stocks just a common sense way to make 10+% on your money without risk.


    Also if I take the time to type it out and tell you about it you are going to be kicking yourself for not doing it long before now.
    Last edited by john; 07-08-2009 at 09:19 AM.

  6. #6
    trippingthespeculatingpos is offline
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    yeah john i meant stocks, always risk involved with stocks. i thought u were referring to s.o's system but obviously your talking about something else.

  7. #7
    Siriusowner is offline
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    Quote Originally Posted by trippingthespeculatingpos View Post
    hey i appreciate the info so but if i followed those rules i wouldnt be up 600 percent with behl, i should right out a rule list for you, how to not settle for measly 10 percent gains. not every1 has the same style s.o. look s.o. u know as well as i siri will be worth twice this much, just not over night till then we might actually go down, but why play the dumb game just hold and wait it out, its gonna get there. just so you know s.o. i am thinking of selling siri to avoid having the money lcked up for awhile but if it holds .40's which IS still a possibility then i will keep it, if i think its going to break .40 then i will sell.
    If you were lucky enough to get at 0.06 then granted, you are up 620%. BUT THAT IS FROM MARCH 9th to date.

    NOW, what if you were lucky enough to get in a year ago, better yet 2 years or 3 years ago ?

    Again, you were lucky.

    I am not saying that SIRI will not double or triple or whatever in 1, 2 or maybe 10 years. What I am saying is in the same time you made 620% I made probably 200 or 300%... The difference is I make that consistently, in other words, I had a 200% return in 2008 while 90%to 95% of the people lost money.

    You are right, I usually look to get safe to 1st base. From time to time I score a home run with the bases loaded.
    You always look for the home run....

    Do as you wish, there's nothing to break @ 0.40. Sell if it breaks 0.42.

  8. #8
    Siriusowner is offline
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    Quote Originally Posted by john View Post
    You want a no risk way to make 10+% on your money? It is easy and only takes some organization, I love the system and if you play it right and by their rules there is shit loads of money to be made without worry.
    Thank you. You got the point. 10% consistently per month with little risk. Beats the 10 % yearly promised by mutual funds, right ?

  9. #9
    trippingthespeculatingpos is offline
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    nice i consistantly get more than 10 percent too, 200 percent with siri 600 perce4nt with behl, maybe i could give u a course s.o.

  10. #10
    trippingthespeculatingpos is offline
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    and ive already taken my 200 percent with siri, i bought back at .35 not as many shares this time, but n ow im playing it a little more aggressive, i got what u are saying s.o. all im saying is thx for the info. will use it when neccesary.

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