MightyMouse

Its never simple and its never perfect. However, their markets go up in reaction to ours and visa versa. If the market that is open rallies because of some event. It is a very rare instance when the the others do not immediately adjust. It is so rare that we can safely say it is nonexistent.

I sense a sharp streak of anger at the input of others. Did you say which institution you are in?

In which case, you have to accept that there will be trades that go in your favor that have only 1/3 ( simpled version of your example) of your position on. On the other hand, each stop out will be with your max position. So, your winner is going to have to go 3 times as far as your loser to break even on a day where you have a single scale winner and a max loser. That doesn't sound like love.

There is an arbitrage relationship between the S&P and all other world stock indices. At any time of the 24 hour day, the one with the most volume at that time leads the others.

The only possible instinct that man has is, possibly, the sucking action a baby makes when presented with a breast. I am not sure if invoking that instinct will help if you are in a bad trading situation.

You should only stop trading if you are making mistakes. There are only 4 trading mistakes: 1 Getting in when you were not supposed to. 2. Getting out when you were not supposed to. 3. Staying in longer than you were supposed 4. not getting in when you were supposed to It doesn't matter if you make or lose money when you commit one of the above 4. Losses from trading are not mistakes; they are part of the game. You shouldn't be thinking about your wins and losses when you are trading. If your set up appears, take it as if it were the first trade of the day. If you are affected by wins and losses, your mind is not yet where it should be to trade.

30% is fantastic. A rare bird earns in excess of 100% and it is due mainly to good fortune in his trading. One is daft if they think they can earn in excess of 30% a year with any degree of consistency in any market. They will argue that they can, but never, ever be able to demonstrate it. I'm disgusted by the information given to new guys. If you doubt the difficulty or earning even a positive return, take a look at "The Race" thread and look at how the market humbles participants with grandiose plans. SIUYA, I will bet you anything you like that the traders you know who regularly make 100%-200% a year will not be willing to show you a statement that verifies that. I am do not mean to poo-poo trading, but if you are planning a career as an independent trader you need to have enough capital to make it. Its really like any business and most poeple fail because they do not have enough start up capital going in to survive.

The market chews up and spits out traders who stick to the rigidity of a plan. If you find it difficult to follow a trade plan and recognize why, then you are on the right path to succeeding at this.

Steve, it seems that you put yourself in the group that "get it" who know how to "take advantage" . of the views that you are presenting. Of course, your views need to be correct in order to "take advantage" of the things that you "get." Typically, arrogance and condescension, which your posts are riddled with tend to indicate that there is a separate agenda that you are trying to promote. Out of curiosity, where do you get the idea that people act predictably? Sheep, cows, dogs, maybe geese act predictably. People do not. If anything, they act strategically, but certainly not predictably. So I guess you can argue that it "works for you" to think that people act "predictably" but, then, not everyone else can take advantage of what "works for you". Generally, when someone thinks that it" works for them" they are holding onto a belief that is is unfounded and are one loss or disappointment away from changing what "works for them". In summation, Imho, you fall into the group who think they know what trading the S&P is all about. The market has a way of humbling the egotistical. Careful when you actually put your own money into the market. It loves people who think they are right. Regards, MM

Good to see you back in the saddle.

Someone should tell the hedge funds, investment, and commercial banks that day trading is not dead, so that they stop wasting their time on insider trading, front running, etc. They probably don't day trade because they don't know which is the best time frame to use and which indicators give the best signals. Or, possibly, they are too overwhelmed by fear and greed to trade properly during the day time frame.

It's the friend's fault for buying the system and thinking it was going to work. Hopefully, his mistakes didn't cost him a lot and he learned to not be such a fool.

The belief that huddy calls all trades before they happen, takes small risks, scales out, and has lots of BE trades, can be completely consistent with what swisstrader is stating. The trading scheme or strategy that you all seem to be saying he does will not turn a profit in the long run under a variety of market conditions. if you do the math, you'll see that he probably is at best a long term break even trader, Dependant on how much he pays in commission per trade and Dependant on the size he puts on. Other things to consider are if he enters and exits at market or with limit orders. Somewhere I saw it stated that he takes about 80% BE trades. For anyone not keeping score with real money, each of those trades is a loser. Do not get me wrong, for a new guy, getting to brake even is no easy task so there is probably value there if you are not break even and you want help.

Kiwi, I am usually pretty skeptical about things I read about trading, but seeing all these positive responses to the channel trading room made me curious so i signed up and, its hard to believe, but since this morning I have lost 5 pounds of weight and no longer have the urge to smoke cigarettes. Thanks Hud! You may want to open up your mind too. MM

My opinion is, of course, biased. But, it does concur with what you said about the room.

if they are putting up 9 dollars for every 10 that you trade, then what, in your mind, would be a fair split of profits and losses? it may look like it is just a desk, but it is probably about $1000 or so a month or more. If they charge you $2 per hundred shares and you have a $10,000 account that they leverage 10 times for you and you trade 5 trades of 500 shares of NFLX at $170 a share per day. Your trade cost with no profit or loss is 100 a day. Their cost per trade is probably around 60 cents per hundred shares so they are making $1.40 per hundred on your trading. So, they are making about $70 a day from commissions on your trading. So, 70*20 trading days is $1400 a month if you break even and they have a cost of your "desk" of $1000. And, that is if you make those 5 trades a day. I am probably missing some costs too, but only trying to tie some numbers to the "just a desk" and that speaks nothing of the cost of the time and effort and materials to try to train the trader. This is why I said you have to be real. it is not emotion and it is not just a desk. Its admirable that you want to warn people of the "dangers" of a prop shop. The point is that you are probably getting more than you think when you join a prop shop. If you are going to succeed, you are probably better off there, than on your own. If you did a swing trade on NFLX and and you made $20 a share on 500 shares, you doubled your $10,000 account. If you were on your own you would have been able to buy about 100 shares on margin and you would have made $2000 instead of $10,000. That's worth something isn't it? Regards, MM

They are taking risks. If you can't see what they are, then contact a real estate broker and find out how much it costs to rent space for, say, 3-5 years, then contact an office furniture dealer and technology firm to determine how much it cost to furnish it, wire it and furnish it with workstations. The costs associated with setting this up are very real. If you can trade or learn to trade, then the added leverage they are giving you will make it very worth your time. You will earn 4-20 times what you would be able to do on your own. Is that worth it? if a business earns X dollars of net profit per employee, do you think, they keep a small piece and divide the net profit up and give it to their employees because they are the ones who did all the work?

It was a day trade (if it was a real trade at all) and it turned into a I-do-not-want-to-admit-that-I-made-a-mistake-trade. 90-95% of all trade plans have provisions for a trade like that. In fact, most trade plans have failure built into them other than the above trade, which for most market participants, makes having a trade plan and not having one indistinguishable from each other in the long run. regards, MM

I think you guys need to get real. Do you expect some firm to rent space, furnish and equip the space, and then pay you money as a draw or a salary as you learn to trade and give you the money to trade and then eat the losses as you learn? You are going to begrudge them and call them scammers if they want to charge you a fee? Besides which, you seem to be missing the point of the capitalistic nature of the markets with your socialistic desires.

I don't trade stock anymore, but you are making me want to short GE until you get out.

MM, Since the first stocks were traded under the buttonwood tree ( buttonwood?) the majority of companies that went public ceased to exist or merged. You could, then, say that buy and hold never worked if you are in the wrong stocks. Buy and hold does not eliminate the need to diversify and it does involve the need to do the unthinkable and add to a position when it is down. The difference being that you are not expecting it to go up in the next 5 minutes and you don't add when it is down 1 point. If you buy Q's' and add to them and sit patiently, you'll be fine. Nothing dies, its just sometimes easier than other times. Regards, MM

Well it certainly is a rare event when I meet someone who is so selfless.

Buy and hold is not dead at all. Buy and hold is as valid a stategy as it ever was.

Ok, so where do I find a student of this method who has received a degree like a med, or law student eventually receives and is achieving success the way a lawyer or doctor does? The sources you provided seem to have students and no degreed traders achieving success. Are you trading it successfully or are you just the president and not a client?

The question was directed to the followers.