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wmck6167

Year to Date Profit is 112.2% but Still Fighting

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Hi,

I am new to trader's lab and this is my second post. I am not good in English writing. But just would like make some friends here. I think I am a learner daily in stocks market since I always can learn something new from there everyday. Here is my principles for trading, first, I try not to gambling. I meant I do not place my important trade based on pure guessing. Whenever I conduct a very critical trade, I may ask me if I am gambling? If it is, I will try to look at what kind of risk I am going to bear. Second, from my experience, most of time I found that if I do trade right(what' the righteousness?), then I won't worry too much the risk, but if I do thing wrong(I am still human), then I found that I was in a war! Then I need to set up a strategy to figure out how not to be defeated!

 

Here is what I think, if you look at market, you probably agree that the probability to win and lost is just half and half, but the amount of win is always smaller than the lost generally. I think because when you trade, when price has rising, but you take profit, it continue up, but when you lost, you generally are pushed to lost max. So my strategy to win in market is not on “how you can win”, but based on “how you not to be defeated when you are in war mode!” and control the risk. Then the lost will be smaller than the profit you win and you can continue accumulate profit.

 

Like to learn from you guys if you have different thoughts.

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When I start learn stock trading, I like a kid want to learn a lot of things and believe that I can find some rules to beat the market. Later on, I find a lot of rules; but sometimes work and sometimes did not work. It really confused me and concluded that market is unpredictable. But sometimes I also felt someone is manipulating the market. But, theses factors are non-controllable. How can I beat these non-controllable enemies if I really need to compete with them? If there is really have a 80/20 rules, which meant what shall I do if I was fell into this 80 percent or even 90% category? So I start to focus on controllable factors. Then I need to think about a plan or strategy to let myself not to be defeated if I found that I was against the market. I focus on control the controllable factors(it's me), then I found I can reduce the lost! Cheers.

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I found there is an interesting thing happened in my mind when I purchased stocks. I purchased stock based on expection. The expection is coming from the judgment of tools I used to analyze the stock will go up. The I buy the stock, if the stock price go up, then I may buy more, if jump, I may take profit. This operation mode seems to be reasonable. But you still put your fate on uncontrollable since it dependents on the result you got and you wait for it. Until one day, I changed my way of operation, I do not put my fate to uncontrollable factor. I tried to set up the plan and do a little bit calculations before I decide to purchase stock. Then situation start to change dramatically. I felt that I like a fisher with good bait.

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Hi, MMS,

 

How about yours? I maybe find out something different with mine or learn from yours if you shares. Thanks. Really, I believe that mine is no special compared with tons of books showed so excellent strategy in Amazon book store. I aslo learned from there, honestly.

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Hi, MMS,

 

I think this is one of my strategy, I think. If I find I am kept lost in stock trading, that means I am making action easily fell into the 80% range in 80/20 rule. So the best way to win the game is developing a procedure to “play game against myself”. Then I might have a chance to fell into 20% category. So the title still fighting is meant to fight myself bad habit! Not the market! Glad to hear your any comment.

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112% YTD profits? Wow ... how did you do that? What is your strategy?

 

MMS

 

HI. MMS,

Here is what I think. There are two giants I really respect. One is B. Graham and the other is W. Buffett. When I read master B. Graham book, I was impressed by his diversity on stocks to lower the risks. When I read Buffett's book, I was impressed by his concentration on profitable target. So I think how to lower risks but also concentrate the profitable target? The key words shall be diverse and concentrate. My strategy is diverse my risks, e.g. if I have poor money management, then I diverse my money to lower risks, then focus on the target. I tried to buy stocks "in my risk" is low. Again it's back to safety of margin again, I think.

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