aussiebear Posted September 28, 2012 Report Share Posted September 28, 2012 http://www.engrish.com/2011/12/misanthropic-mayday/ Sign found in hostel in Fukuoka, Japan. Link to comment Share on other sites More sharing options...
aussiebear Posted September 28, 2012 Author Report Share Posted September 28, 2012 Early openers jumping around: Kiwis +0.8%, Aussies -0.2%, Nikkers flat and Sth Korea -0.3%. Gold +2.7% is the big mover in Aussie sectors with Healthcare -1.3% and IT -1.2% at the other end. Link to comment Share on other sites More sharing options...
aussiebear Posted September 28, 2012 Author Report Share Posted September 28, 2012 http://finance.yahoo...lindices?e=asia Link to comment Share on other sites More sharing options...
aussiebear Posted September 28, 2012 Author Report Share Posted September 28, 2012 http://money.cnn.com...s/morning_call/ http://www.kitco.com http://www.kitconet....ase_metals.html http://finance.yahoo.com/ Link to comment Share on other sites More sharing options...
DrStool Posted September 28, 2012 Report Share Posted September 28, 2012 Been working on cleaning the site. Found more exploits. Now running a security program in the background at all times. I have just rescanned the site and am getting report that it is clean. If you get an antivirus warning please email me at admin at wallstreetexaminer.com. Link to comment Share on other sites More sharing options...
fxfox Posted September 28, 2012 Report Share Posted September 28, 2012 Interesting posts yest about trading and individual trading approaches. Most of that what I wrote comes from personal "day-trading" experience. I bombed several accounts in the past, although I think I have some experience and can read charts, know when there is liquidity in the markets (at what time in the day I mean). My problem was overleveraging and not to use a proper money management. Good thing is that my accounts were never so big that I could say I lost a fortune, but well, it certainly was more than pocket money. Thing is, when you "day-trade" you don't do this for 50 bucks a day. You have to make at least 500. Lets say you trade on 200 days a year, that would be 100k a year, from which you have to pay all expenses, all taxes and all that stuff. Given that, I would say that 500 a day isn't enough, because what do you do if you experiece some kind of big drawadown, which happens sooner or later in every "career" of a daytrader? Fact is that one has to make a 4 digit number on average a day. So lets say you never should risk more than 3% of your account equity, given a 10k account that would be 300 bucks. Keep in mind you have to make 1k each day. For example you trade EUR/USD, when you trade 1 lot, that wouild mean you place your stop 30 pips away from your entry, that are the 300 bucks you can allow, 30 pips is quite narrow, it basically means that the trade should never really go against you, it can meander a bit, but then it has to go in your direction, or you will be stopped out, 30 pips is really not enough to let the market "breath". Also note that you should never take a trade were risk/reward ratio is less than 2:1. Taken that ratio as an example you will make 600, but we said you have to make 1k, so you have to look out for 3:1 ratios, but how often does such a situation occur? I cant tell you how often I did reaqd on forums "I go long 1.5250, tp 1.5300, sl 1.5200", those guys will lose it all, cause they risk 50 to make 50. I even say that such guys don't really use real money, they trade demo accounts, or do paper trading. Given all that, I would suggest that one has to have at least 50k to be able to do a proper money management. How many people have 50k, which they can afford to lose. I say 99% of those who call themselves "traders" DO NOT. Be also carefull with internet forums. There are soooo many whackjobs around who finally found their playground. They will show you all kinds of freaky stuff, the "Quasimodo head & shoulders pattern", 3-armed hanging ape" and what do I know. Many of them are in fact young nerds who sit in the cellar of their parents house and do eat their own boogies all day. Link to comment Share on other sites More sharing options...
aussiebear Posted September 28, 2012 Author Report Share Posted September 28, 2012 Day trading's a whole different kettle of fish. I tried it way back but it was far too stressful for me plus I didn't like being at the computer all day. Doorbell rings, call of nature and bang, there goes the trade. I have known others who thrived on it and did well but it was around the 1999 era .. How much you need to earn depends on debt and lifestyle. If you own your home, have no debt and a modest lifestyle then it's just amazing how little one can get by on and still be comfortable. Link to comment Share on other sites More sharing options...
aussiebear Posted September 28, 2012 Author Report Share Posted September 28, 2012 It turned into a positive (just) day for All Ords, +0.1%. Gold +3.1% held the lead, way ahead of Miners +0.5% and Materials +0.4%. Consumer Staples -0.9% was down the most. Some reasonable performances over in Asia: China +1.5%, Honkers +0.4%, India +1.3% but Nikkers went the other way, -0.9%. On to UK/Europe: Link to comment Share on other sites More sharing options...
tema9 Posted September 28, 2012 Report Share Posted September 28, 2012 Interesting posts yest about trading and individual trading approaches. Most of that what I wrote comes from personal "day-trading" experience. I bombed several accounts in the past, although I think I have some experience and can read charts, know when there is liquidity in the markets (at what time in the day I mean). My problem was overleveraging and not to use a proper money management. Good thing is that my accounts were never so big that I could say I lost a fortune, but well, it certainly was more than pocket money. Thing is, when you "day-trade" you don't do this for 50 bucks a day. You have to make at least 500. Lets say you trade on 200 days a year, that would be 100k a year, from which you have to pay all expenses, all taxes and all that stuff. Given that, I would say that 500 a day isn't enough, because what do you do if you experiece some kind of big drawadown, which happens sooner or later in every "career" of a daytrader? Fact is that one has to make a 4 digit number on average a day. So lets say you never should risk more than 3% of your account equity, given a 10k account that would be 300 bucks. Keep in mind you have to make 1k each day. For example you trade EUR/USD, when you trade 1 lot, that wouild mean you place your stop 30 pips away from your entry, that are the 300 bucks you can allow, 30 pips is quite narrow, it basically means that the trade should never really go against you, it can meander a bit, but then it has to go in your direction, or you will be stopped out, 30 pips is really not enough to let the market "breath". Also note that you should never take a trade were risk/reward ratio is less than 2:1. Taken that ratio as an example you will make 600, but we said you have to make 1k, so you have to look out for 3:1 ratios, but how often does such a situation occur? I cant tell you how often I did reaqd on forums "I go long 1.5250, tp 1.5300, sl 1.5200", those guys will lose it all, cause they risk 50 to make 50. I even say that such guys don't really use real money, they trade demo accounts, or do paper trading. Given all that, I would suggest that one has to have at least 50k to be able to do a proper money management. How many people have 50k, which they can afford to lose. I say 99% of those who call themselves "traders" DO NOT. Be also carefull with internet forums. There are soooo many whackjobs around who finally found their playground. They will show you all kinds of freaky stuff, the "Quasimodo head & shoulders pattern", 3-armed hanging ape" and what do I know. Many of them are in fact young nerds who sit in the cellar of their parents house and do eat their own boogies all day. What about if you moved to Costa Rica or Ghana and did the same thing, would you need $100,000 a year. The per capita income in Ghana is $1200 a year, the per capita income in Costa Rica is $10,000 a year. the per capita income in US is $45,000 What would it be like to live somewhere and earn 10 or 100 times the average? If you lived in Ghana and made $100,000 - $200,000 by day trading you would be in the top 1%. If you lived in Costa Rica you would still be making 10-20 times the average. There are no food stamps, or Obama care in these countries. Costa Rica has no military, you need to look at why you need a $100,000 a year minimum to live in the USA? Link to comment Share on other sites More sharing options...
fxfox Posted September 28, 2012 Report Share Posted September 28, 2012 What about if you moved to Costa Rica or Ghana and did the same thing, would you need $100,000 a year. The per capita income in Ghana is $1200 a year, the per capita income in Costa Rica is $10,000 a year. the per capita income in US is $45,000 What would it be like to live somewhere and earn 10 or 100 times the average? If you lived in Ghana and made $100,000 - $200,000 by day trading you would be in the top 1%. If you lived in Costa Rica you would still be making 10-20 times the average. There are no food stamps, or Obama care in these countries. Costa Rica has no military, you need to look at why you need a $100,000 a year minimum to live in the USA? Of course moving to a other country with much less costs of living is possible. My example was more based on someone who lives in Europe or the US. Say you have a wife, 2 kids and a house. You earn 45k and have a social life, you have colleagues at work, you comute, you do what everyone does. Then you quite your job and start being a day-trader. You loose your social life, you sit in your house the whole day, neighbours ask themselves what "that is that guy doin all day?" and so on. Are you doin all that for 45k? The answer - in my view - is NO. To "trade for a living" does not mean that you just wanna earn what the ordinary J6P earns. Thats not why people start to day-trade. Thats maybe how some will start trading, they are satisfied with making 200 a day.... then - one day - comes the first big drawdown....... Please keep in mind that all I am talking about is "day-trading", I am not talking about following the markets and place a order every few days or even weeks. Thats a whole different story. I see also a big psychological problem with being a daytrader: You are alone. But people are made to live in a community. Thats why "day-traders" visit all kinds of trading forums all day, why they talk via Skype, why they chat via MSN or whatever. They are searching for a social life. While they do that, they lose focus on the market. Link to comment Share on other sites More sharing options...
Jetlag Posted September 28, 2012 Report Share Posted September 28, 2012 Interesting posts yest about trading and individual trading approaches. Most of that what I wrote comes from personal "day-trading" experience. I bombed several accounts in the past, although I think I have some experience and can read charts, know when there is liquidity in the markets (at what time in the day I mean). My problem was overleveraging and not to use a proper money management. Good thing is that my accounts were never so big that I could say I lost a fortune, but well, it certainly was more than pocket money. "Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors" http://faculty.haas....mance_Final.pdf "We document that only the 1,000 most profitable day traders (less than 1 percent of the total population of day traders) from the prior year go on to earn reliably positive abnormal returns net of trading costs in the subsequent year." http://papers.ssrn.c...tract_id=529063 Link to comment Share on other sites More sharing options...
aussiebear Posted September 28, 2012 Author Report Share Posted September 28, 2012 I see also a big psychological problem with being a daytrader: You are alone. But people are made to live in a community. Although not a "problem" per se I did go through an adjustment period when I started on the trading thing. After decades of being part of a team all of a sudden it was just me. Actually the positives came to the fore almost immediately: no more boring meetings, rules and regulations, no more having to put up with difficult colleagues, no more rigid time constraints, etc. On the social side of things, none of my friends are interested in shares/trading/economics so instead of watching their eyes glaze over I can come here and indulge myself.. Link to comment Share on other sites More sharing options...
rdkyote Posted September 28, 2012 Report Share Posted September 28, 2012 Although not a "problem" per se I did go through an adjustment period when I started on the trading thing. After decades of being part of a team all of a sudden it was just me. Actually the positives came to the fore almost immediately: no more boring meetings, rules and regulations, no more having to put up with difficult colleagues, no more rigid time constraints, etc. On the social side of things, none of my friends are interested in shares/trading/economics so instead of watching their eyes glaze over I can come here and indulge myself.. Ha! Ditto. Link to comment Share on other sites More sharing options...
Trader Joe Posted September 28, 2012 Report Share Posted September 28, 2012 MSM.... Fiscal Cliff Fiscal Cliff Fiscal Cliff Fiscal Cliff Fiscal Cliff Fiscal Cliff Fiscal Cliff Fiscal Cliff Fiscal Cliff Fiscal Cliff ________ Ugh STFU already Link to comment Share on other sites More sharing options...
JonLaw Posted September 28, 2012 Report Share Posted September 28, 2012 Although not a "problem" per se I did go through an adjustment period when I started on the trading thing. After decades of being part of a team all of a sudden it was just me. Actually the positives came to the fore almost immediately: no more boring meetings, rules and regulations, no more having to put up with difficult colleagues, no more rigid time constraints, etc. On the social side of things, none of my friends are interested in shares/trading/economics so instead of watching their eyes glaze over I can come here and indulge myself.. My wife was the one who inflicted actual knowledge of the stock market upon me. She insisted I do her financial project for her. I had to analyze KO. What's a P/E, I said? Earnings? Huh? It was painful. It hurt. I mean, I knew that you could make a bajallion dollars in the stock market, but I didn't know anything about it except that you got 8% compounded returns and only needed to invest about $4,000 per year to retire as a bajollionaire. Now, since I had majored in chemical engineering, I kind of looked under the hood. "Uh...we are in trouble, I said." That was 1999. Which has led me, inexorably, here. Link to comment Share on other sites More sharing options...
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