tag:blogger.com,1999:blog-30128229.post6313014674489626480..comments2023-09-30T07:11:55.493-06:00Comments on MarketFN.com: Some Characteristics of Successful TradersInvestment Househttp://www.blogger.com/profile/14771320644915759241noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-30128229.post-79024124944004132912009-08-02T10:34:48.308-06:002009-08-02T10:34:48.308-06:00Hi Judy, and thanks for writing. If there is a &qu...Hi Judy, and thanks for writing. If there is a "magic touch" I think it would be gaining knowledge. There are a number of excellent books available on charting (also known as technical analysis) that I would suggest. Among them are Charles Kirkpatrick and Julie Dahlquist's "Technical Analysis," Martin Pring's "Introduction to Technical Analysis," and Steven Achelis' "Technical Analysis from A to Z." Pring's book might be a good starting point while the others would add to that foundational information. Charting can be extremely helpful in establishing entry and exit strategies.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-83685023788979965192009-08-02T09:27:39.255-06:002009-08-02T09:27:39.255-06:00I really like your column. However, I do not know...I really like your column. However, I do not know how to read charts! Is there a "magic touch"?<br />Please answer if you have time. Thank you.<br />JudyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-3724028327375057152009-08-02T09:20:43.172-06:002009-08-02T09:20:43.172-06:00Thank you for writing, Anonymous. You make an exce...Thank you for writing, Anonymous. You make an excellent point about HOW to cut losses and let profits run. I certainly don't intend to make it a tease since I believe it is one of the most important things successful traders do. I spend a great deal of time with coaching students on that precise issue and there is no single answer. However, the first way I know to cut losses is to have a pre-determined exit strategy. That strategy could be to set a stop loss a specific percentage away from an entry or it could be to exit on a break below a price support or a close below a price support or a break or close below a trend support. Letting profits run can be a more difficult proposition, particularly psychologically for many traders. One way that I describe in "Trade Your Way to Wealth" that you may not yet have read is to use a trailing stop. That is described in some detail in the book. Another might be to exit on a cross over a moving average. As an example, in a bullish play, if I decide to use a 40 day moving average, my exit could be when the stock price crosses beneath the moving average. As the price is going up the moving average line would also be going up, but once crossed, the trader could pull the plug understanding that the MA has been broken. As you can see, there are a myriad of ways to cut losses and let profits run. The important thing, in my estimation, is to utilize one that works for the individual and though you say it would be a cop out to say it depends on the individual, the fact is it does depend on the individual as to what specific discipline to use. For example, I may use an 8 day moving average while you might choose a 50 day because of time we are willing or able to devote or because of personal comfort zones. I may trail a stop at 4% while you might prefer to use a dollar type trailing stop and choose to trail your stop at $1.25. So there you have some examples and as you read "Trade Your Way to Wealth" you will find several others. Thanks, again, for writing, and thank you for getting my book.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-17065732573330940922009-08-02T09:16:24.848-06:002009-08-02T09:16:24.848-06:00Thanks for writing, Rod. Trailing stops can defin...Thanks for writing, Rod. Trailing stops can definitely be an exit strategy and at times a good one. I often use trailing stops myself once a position is profitable or if I am going to be away from the market. In fact, I mention their use in "Trade Your Way to Wealth."<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-51892030851163211162009-08-02T09:15:22.997-06:002009-08-02T09:15:22.997-06:00Congratulations, Lynn B. Glad to hear your trading...Congratulations, Lynn B. Glad to hear your trading is going well and you are back in the game. Thank you for the kind words about my book.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-68696365578046312962009-08-02T09:14:12.592-06:002009-08-02T09:14:12.592-06:00Thank you for writing, Rahul. I'll have to dis...Thank you for writing, Rahul. I'll have to discuss the use of my articles with the publisher. I do own the copyrights, but have an agreement in place with him regarding use of articles and websites. I will get back to you once I have made contact with him and advise whether we have been able to reach any mutually agreeable decision.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-42075120368795115962009-08-01T19:37:02.864-06:002009-08-01T19:37:02.864-06:00Hi Bill,
I have your book, and I must say that a ...Hi Bill, <br />I have your book, and I must say that a good deal of your writing is accurate. I've often wondered, however, why you continue to tease your readers with the old bromide about cutting losses short and letting winners run. Most traders would agree that it's a good thing to do, but I've never seen any description of how to do it. Why not include a few examples once in a while to give people an idea of how it's done. You may say that it depends on individual risk tolerance or trading style, but that's a copout. Your credibility would be enhanced, and you just might help some people who are struggling with this notion.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-14709652949184922302009-08-01T18:50:51.778-06:002009-08-01T18:50:51.778-06:00I've been reading these articles for awhile no...I've been reading these articles for awhile now, and so far have never been led astray. I like this one about entry and exit strategies because it's so easy to jump on a trade without undergoing your due diligence and just as easy to tell yourself when the trade starts losing money that it will come back. I due my fundamental and technical analysis, but my exit strategy involves trailing stops and I'm wondering if this qualifies as a qualified exit strategy?Rod Bollesnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-11449878638544666202009-08-01T17:37:24.450-06:002009-08-01T17:37:24.450-06:00Thanks, Bill. Have read most of your book, and ta...Thanks, Bill. Have read most of your book, and taken an excellent course from onlinetradingacademny.com <br /><br />One of their instructors sounds like he's repeating your book nearly word for word. I lost nearly $47K in Sept. because "It will come back". after taking the course I am back in, and my first trade made 24% profit after commissions in less than 23 hours.<br /><br />Trailing stop really worked and the stock continued to decline after it stopped me out.LynnBnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-36274815270475350432009-08-01T12:35:42.510-06:002009-08-01T12:35:42.510-06:00Hi Bill,
Love your articles ..
Lots of sense ..
...Hi Bill,<br /><br />Love your articles ..<br />Lots of sense .. <br />spoken sensibly too ...<br /><br />Can I post your articles to my list and yahoogroups with your name and website link??<br /><br />Let me know if you would prefer it some other way??<br /><br />You can get back to me at bruntno1@yahoo.com<br /><br />Best regards, <br /><br />Rahul,<br />:-)Anonymousnoreply@blogger.com