Originally Posted by
DAL 88 Driver
Scambo,
I didn't mean to "dis" what you're doing. I was just trying to contribute to the discussion. Investing is a topic of interest to me too. And I see nothing wrong with anything you've posted. It's your opinion and it might be really helpful to someone.
I think it's important to note that you and I are essentially talking about two different things... day trading and investing. You are talking about day trading. I am talking about investing for the long term. We both are using risk management techniques. Personally, I'm not big on day trading. I see comparing day trading with a more long term, consistent investment approach as being kind of a tortoise and the hare parallel. But I'm not knocking what you're doing. It's just not right for me... just like what I'm doing isn't right for you. It's up to each individual to find an investment/trading method that is a good fit for their objectives, time horizon, temperament, and tolerance for risk.
Thanks for the discussion. Whether you and I agree or not, I think it's a topic of interest to many here. I don't think any of us want to see the "Latest & Greatest" turn into an investment forum. But don't stop posting on this topic when you have something to say.
Are we cool now?
What's this MD 88 Driver thing? I bet your license says DC-9. Now that we've covered airplanes, let's talk trading
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Investing/money management is actually a valid topic at L&G given that each of us is now responsible for the performance of our retirement accounts. 88 Driver has mentored a lot of guys. I imagine Scambo1 has had a conversation or two on the flight deck. I know I have.
88 Driver, there is more to it than investing or day trading. What you are doing is investing using a bullish trading strategy. The projected timeline for your positions generally ranges from 3 months to as much as 4 years. Day trading is usually opened and closed on the same day or within 24 hours. You are correct, it is extremely difficult to do consistently.
There is a middle ground. It's called trading. You do it when the opportunity presents itself and the probabilities align with your trading opinion. That's what Scambo1 is doing. Most of these strategies have a life of 2 weeks to 2 months.
I do both investing using the exact same method as you and trading like Scambo1. They are not incompatible. They are just different. When I trade I do defined risk strategies. I never trade naked. I trade high proability strategies. I sell premium. I don't need stops because I define my risk from the outset. I use TNA as one of the mainstays of my trading. But, I am an experienced trader. It's not for a beginner. It's not dangerous if used properly.
Here is my prediction. Now that the market has gone up in a dramatic fashion, the probabilities are beginning to shift the other way. It's not quite time, yet. But, it if the S&P goes up closer to 1300, it will be time to short. I have closed many of my bullish trades in the last few days. My trading powder is dry and I am waiting for the right entry point. Yes, you can make money both ways. You just have to be flexible. This has been a great trader's market. Not so good for the buy and hold guys.