tag:blogger.com,1999:blog-30128229.post1563889249520287517..comments2023-09-30T07:11:55.493-06:00Comments on MarketFN.com: The Pace of TradingInvestment Househttp://www.blogger.com/profile/14771320644915759241noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-30128229.post-14896527168916041542010-07-13T23:40:34.481-06:002010-07-13T23:40:34.481-06:00Thanks again Bill
Great information
MorrisThanks again Bill<br />Great information <br /><br />MorrisAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-33976090233626956242010-07-13T08:05:11.365-06:002010-07-13T08:05:11.365-06:00Hi Morris. We have definitely been seeing a retrac...Hi Morris. We have definitely been seeing a retracement from the run-up that began in 2009 as you indicate. Retracements are common and expected. The current retracement has gone to a prior level of support and bounced so I'm not sure that we can conclude that the market is more likely to go down than up. Of course, historically over time markets have gone up overall with periods of sometimes significant drawbacks. Short to mid-term direction seems to me to be dependent on how the market (S&P 500 in particular) deals with the downtrend line on the daily chart that began from the April high. As I write it appears that we are about to see a test of that line. A break through could lead to an upward move while a bounce down off that line could foretell a further retracement.Bill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-68363149761303260002010-07-12T23:01:08.001-06:002010-07-12T23:01:08.001-06:00Hi Bill
I'm looking at the sp500 5 year week...Hi Bill <br /><br />I'm looking at the sp500 5 year weekly it looks to me the bull market from early 2009 has finished and we are now trending down.I would say it is more likely the market continues down than up.This is the first time you could draw a down trend line since the bottom. Is this a reasonable deduction. <br /><br />I understand if you dont have time to answer this question as its not pertaining to this weeks blog.<br /><br />Thanks <br /><br />MorrisAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-57715216906030815132010-07-12T08:41:03.620-06:002010-07-12T08:41:03.620-06:00Thanks for asking about the coaching, Morris. Ther...Thanks for asking about the coaching, Morris. There really isn't some specific level of knowledge required for a coaching session since I tailor each session specifically to the individual student. For example, in your case from what you have written so far, I would suspect we would concentrate on precise ways in which you can create a specific discipline to cut losses and learn specific ways in which to let profits run so that you would be far less likely to fall into the trap of cutting profits and letting losses run that is the bane of so many retail traders. We would also probably begin to look at ways in which options could be used to reduce risk as well as to increase income. I look forward to meeting you when your schedule permits.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-59416699914777647472010-07-11T23:32:16.756-06:002010-07-11T23:32:16.756-06:00Bill thanks for your informative reply.
I think I ...Bill thanks for your informative reply.<br />I think I will stay with equities.<br />Options will come later. <br />I had some big losses early in the decade that I have yet to overcome.<br />I was trading with no training and no rules. I'm slowly getting better,mainly from your books and weekly blog.This year to date I have a small profit in my trading account.<br />I really want to take a 2 day coaching session when I can find some time.<br />Is there a certain amount of knowledge a student should have before he/she attends ?<br /><br />Thanks <br /><br />MorrisAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-66788598624459731082010-07-11T17:39:13.862-06:002010-07-11T17:39:13.862-06:00Thanks for writing, Morris. While straight directi...Thanks for writing, Morris. While straight directional option trades have loss limited to the cost of the option purchased, the other side of the risk coin is that they expire. When simply buying an option, therefore, you need to be right on direction <b>and</b> the move needs to happen relatively quickly. When owning a stock while the dollar risk may be higher, the stock does not expire so you need be right on direction only. As I explain in "Trade Your Way to Wealth," there are a variety of ways to utilize options other than simple directional plays so certain option strategies may be preferable in certain situations. As is so often true, gaining knowledge becomes very important. With options we would likely want to learn both the basic strategy <b>and</b> adjustments in case we may be wrong on direction. Trading stock often may be less complex than many option trading strategies but entails risk equal to the price of the stock at entry if buying and much greater theoretical risk if shorting. While all the foregoing may not answer the direct question for you, it may help you reach your decision on how to proceed. Whatever the choice, I would suggest paper trading any strategy, including buying stock, before putting real money at risk and see how you are doing. At this point, you write that you are not making money trading stock so you may want to paper trade to see if you can find a way to turn that around. Only when you can see that your paper trading strategy has been working should you consider commiting cash to a strategy and then it is very important to realize that you are likely to find that real money trading adds a dimension of emotion to the activity. It is not unusual that a failure to make money trading is related to emotional reactions to and during the trade. If that is the case, it becomes more important that the trader establish a discipline in his trades in an effort to remove the emotions from the actual trading action.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-53380987691365272142010-07-11T12:20:22.088-06:002010-07-11T12:20:22.088-06:00Hi Bill
I have been studying alot lately on equi...Hi Bill <br />I have been studying alot lately on equity trading, and have yet to become profitable, In your book Trade Your Way to Wealth you write alot about trading options. I feel that I should become a profitable stock trader before trying options,<br />or maybe options are less risky because of the limited loss factor of each trade.<br />Your opinion on this would be valued<br /><br />Thanks <br /><br />MorrisAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-84163557164858253612010-07-11T11:52:43.518-06:002010-07-11T11:52:43.518-06:00Hi Tex. Sorry for the confusion. I mean sell calls...Hi Tex. Sorry for the confusion. I mean sell calls against my LEAPS similar to the way I describe in "Trade Your Way..." I'm really glad you liked the book and that you are enjoying the newsletter articles.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-71442925052400909452010-07-11T11:51:42.525-06:002010-07-11T11:51:42.525-06:00Thanks for writing, Ted. It's great to hear th...Thanks for writing, Ted. It's great to hear that you are comfortable in your trading since that also usually translates into a report of success as well.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-50733857328492041612010-07-11T11:50:14.925-06:002010-07-11T11:50:14.925-06:00To Anonymous who has a trading paralysis: Thanks f...To Anonymous who has a trading paralysis: Thanks for writing. I've had many calls and have coached people with trading paralysis. It is an extremely powerful issue and, of course, results from fear. In general, it is important to realize that some trades inevitably will lose and that is just the way it is so creating a plan to cut losses is critically important. Once that is done, I would suggest you consider trading just one (1) share of a relatively inexpensive stock that looks good to you. See how you handle that pressure and as you feel more comfortable, consider gradually enlarging the position, each time making sure you have a plan in place ahead of time to cut losses.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-26124025803266279992010-07-11T09:53:40.418-06:002010-07-11T09:53:40.418-06:00Bill, Loved the book and your newsletter. I'm ...Bill, Loved the book and your newsletter. I'm confused about the Options Trader FCX trade. You said you owned the LEAPS and then said "I am looking at it as a candidate to add to my existing positions. Once a long position is established, I look for places to sell out of the money calls to reduce risk and bring in income." Do you mean you would exercise your LEAPS and then sell calls, or sell calls against your LEAPS as you describe in Trade Your Way..."? Thanks.<br />TexTexhttps://www.blogger.com/profile/17275611808966792106noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-46039109198432671732010-07-10T16:35:19.393-06:002010-07-10T16:35:19.393-06:00Bill
Another great weekend newsletter.
I love w...Bill <br />Another great weekend newsletter. <br /><br />I love what you say about finding a comfortable trading format, to keep fear and greed to a minimum.<br /><br />I am a long term investor that is comfortable in my trading method and has been able to reduce fear and greed greatly.<br /><br />Thanks<br />TTedhttps://www.blogger.com/profile/08819906293004479883noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-90253143316679605502010-07-10T10:01:20.745-06:002010-07-10T10:01:20.745-06:00I like to read your Weekend Newsletter...and I tha...I like to read your Weekend Newsletter...and I thank you.<br /><br />Two weeks ago you talked about "paralysis".<br /><br />For a period of time, I face this problem. So I have stopped trading. But now I am unable to start over.<br /><br />What do you suggest in such situation ?<br /><br />Thank you !Anonymousnoreply@blogger.com