Tuesday, December 09, 2008


sold SKF + $ 6200
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5 comments:

veenmr1 said...

You are like a vacuum! You mentioned that you spent two years just watching the market before you started trading. I am wondering what account size you started out with and how long it took you to grow it to current size? Also, the tight stops keep your risk quite low despite the large positions. How are you setting those stops, is it just a fixed percentage or based on the individual chart situation?
Thank you so much for your blog, it has been very enlightening and encouraging for me!

2:44 a.m.
Scott said...

I had sold my business so i was able to put $250k in when I was ready to trade. With this fantastic trading environment during the last year, the account has seen some good increases.
I set stops based on the chart situation. The trick is to get the timing correct so that the momentum quickly carries your entry after from getting stopped. There is a point which any trend will stop/start/reverse so I try and key into that. If my decision is correct then it becomes a money management issue.
Thanks for the blogging compliment. Believe in yourself that you can do this as well.

10:52 a.m.
Scott said...

correction should read - quickly carries your entry AWAY from getting stopped.

10:58 a.m.
ez said...

thanks for ur amazing posts, on yesteday when the trend is chop i follow you and make nice thanks ,is how u get a feel that a trend movenent get stop , its not strong .and u can explain more details on how to get timing corect ?

11:11 a.m.
Scott said...

Trade EZ, it's hard to explain exactly the process. It's more like take what the markets and stock are doing and be aggressive at the first signs of strength, weakness or stalling . The big ETFs move a lot in the chop and it is sometimes easy enough to take quick profits or $1 or 2 in 30 second or 1 minute trades. If you can get a sense of the strength of the overall trend and remember that profit taking will always occur even though the long term daily trend stays intact, you can make significant profit. Losses can also come fast so you need to be quick to admit you are wrong and get back on the winning side. If you can't read the conditions after a few chops then stay on the sidelines until you can.
Happy you are trading successfully!

10:05 p.m.

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