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Pristine.com on sait aktiivsetele kauplejatele, seal ka võimalus tellida tasuta newsletter (avalehel vasakul ääres). Nad saadavad ka veidi jama (seminarid kruiisilaevadel) kuid ka päris lugemisväärseid kirju tuleb vahest (allpool üks näide).
Michael Sincere toob välja paar elementaarset, kuid ikkagi pidevalt rikutavat kauplemispõhimõtet:
1) kasumitel laske joosta, kahjumid pange kinni. Vastupidine käitumine on sageli rahaliselt valus. Seadke endale mõttelised stopid ja pidage neist kinni.
2) Distsipliin, distsipliin, distsipliin. Järgige rangelt oma kauplemispõhimõtteid ja ärge laske emotsioonidel sekkuda. Mulle endale meeldib ka põhimõte, et iga päev ei pea kauplema - kui olukord ebaselge, on kasulikum päev kõrvaltvaatajana seista.
3) Me kõik teeme vigu. Edukad on need, kes oma (või ka teiste) vigadest õppida suudavad.My Trading Demons
By Michael Sincere, author of the books:
The Long-Term Day Trader and The After Hours TraderI've recently received a number of e-mails asking that I discuss some of my personal trading experiences, with the hope that readers can learn from my successes and failures. In my first book, which I wrote a few years ago, I described dozens of mistakes that I made as an investor and tried to help readers avoid making the same mistakes I did. It was extremely educational and therapeutic to reveal my errors, as well as the errors of professionals, and to offer solutions to many common investment mistakes. Many people know that you learn little from your successes but everything from your mistakes.
A few weeks ago, I described a few of the most common trading demons from Oliver Velez's book. In today's column, I will tell you a few of my own personal trading demons, and what I learned. One of the reasons I love trading is that if you make a mistake, you can often earn back your money relatively quickly, assuming you trade well and responsibly. As a buy-and-hold investor, however, it could take years for you to recover from losses.Trading Demon: Not Adhering to Stops
Without a doubt, the most common error I make is not adhering to stop losses. This mistake alone has cost me thousands of dollars over the years. Many traders are disciplined enough to use mental stops, which means they know at what point they will sell a stock and are disciplined enough to follow through. What I have found, however, is that I tend to ignore my mental stops, rationalizing that the stock is only experiencing a temporary setback. Last month, I shorted Juniper Networks (JNPR) around $35 a share. Like many traders, I got swept up in the doom and gloom scenario that was prevalent at the time. JNPR rose a little, then predictably fell on bad news from Cisco Systems. I was convinced JNPR would break through support and plummet even further. There is no way to know what might have happened, because Greenspan unexpectedly cut interest rates, causing JNPR and dozens of technology stocks to rocket higher. The stock easily blew past my mental stop, but I held the stock a little longer, hoping that JNPR would return to the middle thirties. In fact, it didn't, and after three days of excruciating pain, I finally covered for substantial losses. I learned two lessons that week: First, the market is always right, and second, never, ever ignore your stops.
Because I have had some trouble with mental stops, you might think I am a big proponent of hard stops. Unfortunately, and I will discuss this in a future column, market makers and specialists sometimes play a game called "running the stops," where they use their own money to cause some stocks to suddenly rise or fall, temporarily taking out all the hard stops along the way. A number of traders have been unexpectedly stopped out in the last few months, especially on slow trading days with low volume, the kind of days that are easy for the pros to manipulate. Because of this, I tend to use stock alerts more often than hard stops.
Nevertheless, hard stops are still recommended if you are unable to monitor your stocks closely. The trick is to use a wide enough stop so that it is only triggered in case of an extreme price swing, like when Greenspan cuts rates or the market plummets on really bad news. For me, I will use a combination of mental and hard stops with alerts, but I will never, ever ignore them again. They are like an insurance policy. The real skill is in determining where to put the stop, and that, unfortunately, takes some experimentation.Trading Demon: Lack of Discipline
Although I could write all day about the importance of cutting your losses and letting your profits run, like many novice traders and investors, I sometimes do the opposite. I sometimes let a loss get away from me in the hope I will get back to even. Or, when I'm in a winning trade, I take the gain too quickly before it turns into a loss. On the floor of the exchange, this is known as "eating like a bird and defecating like an elephant." Years ago, when I was a relatively new buy-and-hold investor, I went long Iomega and didn't sell, even when the stock went against me by a dozen points. I mentioned this to William O'Neil, publisher of Investor's Business Daily, and I will never forget what he said to me: "How could you do that?"
He was absolutely right. How could I let myself get stuck with such a losing position? It really comes down to being a disciplined, emotionless trader. It's easy to talk about being disciplined and following your rules, but the truth is, it is extremely difficult to do it in real life. One thing I have learned about myself is that it is not easy for me to leave my ego at the door when I trade, or to not feel a range of emotions, from fear and greed to hope and hopelessness. To counteract these very human feelings, I rely on technical analysis, as well as a structured plan that I follow before, during, and after I make a trade. Like an airplane pilot ready to land or takeoff, I have a checklist that I refer to when trading. When I follow my rules without letting emotions impact my decisions, I always do the best.
I have also learned to not berate myself when I miss a great trading setup because another one is always around the corner. In the past, I was impatient, trying to make money every single day. This is possible during trending markets, but when the market starts and lurches, I have learned to patiently wait for the best opportunities. Most importantly, when I miss one good play, I just wait for the next one--even if it takes a while.
One other technique I find useful is to keep a log of my trading mistakes. This allows me to analyze my actions on a regular basis, and helps me avoid repeating those mistakes. Whether you are a novice or experienced trader, keeping a daily trading log can be extremely beneficial. Although it's a lot more fun to write and talk about our successes, recognizing and then removing the trading demons from your life is one of the quickest ways to become a profitable trader. -
Üks lugemine stop-losside kohta.
A Guide to Protective Stop Losses
By Paul Lange, Moderator of Pristine's Educational Trading Room,
and Private Mentor in Pristine's Private Mentorship ProgramProtective stop losses. You have read about them. You have been lectured to about them. You still don't use them properly. What do you do? The purpose of this article is to go into more detail. More than just to say you must use them. I will try to explain why you may not use them properly, and to give helpful suggestions of new ways to begin using them properly.
Let's get a few facts out in the open first. Fact Number One: Most traders do not make it in the long term, especially those who do not get training. Fact Number Two: Most traders who fail do so because of not following their stops. Fact Number Three: Your goal is to get to the point where you follow stops like a reflex, just like you would jump out of the way of a speeding car. There is no in-between. Either you follow them or you don't. I am going to offer suggestions to get to this goal, but they are not substitutes for this goal. You must accept that you have a flaw and it needs to be fixed.
What is a stop loss? It is a line in the sand right? A spot that is chosen to represent the maximum loss on a trade? Well, not totally. Most people don't realize that the stop loss comes from the chart. Depending on the play, some may have tight stops, some may be wide. You really need to know the stop first, so you can play the right number of shares so that your maximum loss on a trade is within the limits you have set out in your trading plan (you do have a trading plan, right?). You can't change the stop, as that would violate the integrity of the play. You can adjust your share size to make the potential loss within your limits. You can pass on the play if it does not fit into your plan. You may not realize it, but this is the first step in following your stop. Have a trade and share size you can live with.
Consider trader Jane. Once upon a time she bought a stock as it broke out from an all-afternoon long base. Her stop was below the low of the base. The stock started up, and then pulled back to the base. Then below the base. Below the stop. In disbelief, Jane just froze. This was a perfect setup; it just can't fail! Now the stock really plummets. She can't sell now; obviously it can't go any lower. She doesn't want to sell at the low of the day. So she hangs on. The stock starts to come back. It rallies back to the base. Then back above. It turns out to be a big winner.
This is a problem for Jane. Oliver Velez in his book, "Tools and Tactics for the Master Day Trader," calls this "winning the wrong way." It does not matter how many times Jane now loses money by violating her stops. She will always remember this one winner. That is the way the mind works; it remembers what it wants. In the Educational Trading Room, we are big on teaching the tracking of trades, and printing charts and identifying mistakes. By doing this you would know that most of the time violating a stop results in more losses. Jane may go on violating stops because she only remembers that one time. The one time her loser became a winner.
How about trader John. Maybe you can relate to this. He goes long a stock. It never goes quite right. The futures start slipping. His stock hits his stop. He does not sell it because he feels he is an experienced trader and his stock deserves a "little more room." After all, his stock is holding up well; it is just the futures that have slipped. If they come back, surely his stock will do well. If he sells it now, it is likely to come shooting back and since he is in the trade, it is worth a "little more investment" to "give it a chance." Does this sound familiar? The stock does not come back much, and John starts looking at his stop. He realizes that his stop was awfully tight, and just a little bit lower is a major area of support. So he makes that his new stop. Of course, that stop comes close, and he now looks and realizes that the low of the day is not far below and that will be solid support. That will be the final stop.
Well of course, as that stop gets violated, John starts thinking that he can't sell it now. I can't get any lower and it is "due to bounce." Besides, the daily chart has support in this area. Finally, in some truly sad situations, John may start looking up the fundamentals of the company. He has taken a scalp off of a five-minute chart and now has an investment. How did this happen? Does any of this sound familiar? Looking back, that original stop was not such a bad idea.
So what do we do? First you have a trading plan. You have outlined how many shares you can trade with a stop loss at a certain point. This makes sure that you are trading with a share size that allows you to take a loss when needed.
Second, have your plan and all of your rules in writing. Very specific. Written as a promise to yourself. Your mind responds different to something you write. It does. You must write. Review your rules and keep a top 10 every week. If your rule is simply, "Always follow stops," but this is not working, try this.
1 I will sell all of my positions at my written stop loss every time.
2 If I am too foolish to do the above, I promise I will sell half my position.
3 I will then sell the back half of my position at the next support level that is violated.
4 If I am too foolish to do the above, I will sell the last half at the low of the day.
5 If I am too foolish to do the above, I will sell the last half at the end of the day.
6 If I am too foolish to do the above, I will quit trading.By selling half it lets you get in the habit of doing what is right, while appeasing the terrible spot in your mind that does not want to be a loser. You will find it easier to sell half. Once you sell half, your mind will start thinking properly again. If you cannot get rid of the back half, you must sell by the end of the day. Never never hold a loser overnight. That is a career stopper.
In summary, have a trading plan. Define what you are allowed to lose on a trade. Define what your share size can be on a trade. We have sample trading plans that we use in the Educational Trading Room. Define what your goals are so your subconscious knows what being a loser is. If you are 3 for 7 in winning trades but you made money, are you a loser? Write your rules down and learn to follow them. Sell half for now if you can't sell it all. You must get to the point where stops are automatic and reflexive. Lastly, never, never take home a loser.
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Need rahalised teenused on seal kyll selline mõttetu crap, et lausa jube. Huvitav, kust nad kyll kliente saavad.
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Fit, seda olen isegi vaadanud. Kuid need e-mailid on kohati päris loetavad. Ja kingitud hobuse suhu ei vaadata :)
Aga ilmselt on USAs siiski investoritel/treideritel piisavalt raha, et käia kuulamas Vahemerel kruiisivatel laevadel seminare kauplemise kohta. -
Veidi lugemist QQQ-ga kauplemise eeliste kohta.
How to Beat the Pros: Trade the Q's
By Michael Sincere, author of the books:
The Long-Term Day Trader and The After Hours TraderOne of the skills of a professional trader is to search for ways to make money during any market environment. Although it was easy for people to book profits during a raging bull market, the current indecisive market has been a lot more challenging on a day-to-day basis. That is why savvy traders are always looking for new and aggressive strategies to survive and win in today's market. Although many investors are still relying on the popular buy-and-hold (what I call buy-and-hope) strategy, it has become obvious that this strategy has failed miserably in the short-term, especially when used with technology stocks. Perhaps in five years JNPR, JDSU, CSCO, SUNW and dozens of other beaten-down technology stocks will see triple digits again, but there are no guarantees.
In fact, the most difficult part about being a buy-and-hope investor is that even if the market turns around and zooms higher, the stocks you own might go the other way. In other words, you can be right about the direction of the market but wrong about the stocks you pick. Trading has become more difficult because not all stocks are going up like in the old days, and now it actually takes skill to make profits in this market.
One surprisingly effective strategy for both investors and traders is trading the Nasdaq 100 index on the American Stock Exchange, known by its symbol, QQQ. This index consists of the largest and most actively traded stocks on the NASDAQ Many professional traders and investors have discovered the Q's, making it one of the most liquid stocks on the American Stock Exchange.
"The Q's are a wonderful tool that allows traders to play the entire broad trend of the NASDAQ," Oliver Velez says. "I've become extremely active with the Q's because my time frame for individual market trading has become smaller, so I focus primarily on the Q's versus individual stock selection." In other words, if you don't have the time to trade and monitor individual stocks, you could own 100 of the most popular NASDAQ stocks by trading the Q's.
There are other advantages to trading the Q's. Owning the Q's eliminates what Velez calls the unsystematic risk of being in the wrong stock at the right time. The high liquidity of the Q's means you will get fast fills. With just one stock, you are basically trading the entire NASDAQ market and with a lot more control than by owning a mutual fund. And finally, because there is no uptick rule with the Q's, you can short even on the way down.
Are there any disadvantages to trading the Q's? There is one, admits Velez. "Individual stocks move faster and farther than the overall market, so by playing the Q's you give up some of the extra bang that stocks with higher betas will deliver." Basically, as Velez points out, for a little less potential profit you are also decreasing the risk that you will own a loser while the market is winning.
You might wonder why everyone doesn't advise you to trade the Q's. First, this index was unfortunately introduced in early 1999, just at the peak of the Internet bubble, so perhaps the early pioneers of the Q's were scared off when the NASDAQ fell 60 percent and the Q's went from over $100 to $40. Also, it usually takes investors a long time to take a chance on trading something as new as the QQQ (NASDAQ 100), or its relatives, the SPY (S&P 500) and DIA (Dow 30). Finally, many analysts and the firms they represent prefer to talk you into buying individual stocks, and not promote something that looks and feels like a mutual fund.
Let's take a look at how you can you use the Pristine Method™ of trading with the Q's. At Pristine, there are two broad approaches to trading. One is wealth building and the other is income producing. Velez says that you can use the Q's to do both. "One strategy that we taught our traders during strong trending markets is to put his or her entire cash account in the Q's and keep it there as long as the Q's are above or below its rising or declining 20-period moving average. Let's say we are in an up market, as long as the Q's stay above the 20-period MA or 50-period MA, I will keep all my cash in the Q's. You can be pretty sure you will outperform the bulk of the professional community since 85 percent of professional money managers fail to beat the overall market every year."
Velez builds wealth by keeping the bulk of his cash in the Q's and using position and swing strategies. With what money is left or by going on margin, he will use more aggressive guerrilla and micro-trading tactics. Put another way, you can be a long-term day trader (what Pristine calls core trading) by primarily using the Q's, building wealth and generating daily income.
Let's take a look at a one-year weekly chart of the Q's and compare it to the 20-period MA.
You will notice that the Q's broke significantly below the 20-period MA in September and stayed below it as the 20 MA declined. Velez says that as long as the Q's stay consistently below the 20 MA, his traders will primarily stay short. He says his core traders have been shorting the Q's since September, while intra-day they have been going both long and short.
Should you go long again if the Q's go above the 20 period moving average? "No," says Velez. "A trader will go flat until a significant trend to the upside has been established, meaning you enter if the 20-period MA is rising and the Q's stay above the 20." This will allow you to reestablish a long-term core position while still playing both sides of the market on a daily basis.
If you are a new trader, the Q's are a fantastic way of learning how to trade the NASDAQ with a minimum of risk. On most days, the Q's stay within a well-defined trading range, but don't forget to use protective stops. No matter what your strategy or skill level, you could use the Q's to meet most of your trading needs.
