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Comment on The More You Trade, The Less You Risk – Week 57 – 4 Minute Drill for Traders by warez

warez — Sat, 19 May 2012 04:28:25 +0000

warez…

[...]The More You Trade, The Less You Risk – Week 57 – 4 Minute Drill for Traders |[...]…

Comment on Managing with Windfall Profits – Week 56 – 4-Minute Drill for Traders by Joe

Joe — Mon, 14 May 2012 14:50:39 +0000

I believe this is very good advice! I know from experience and will adopt this method. Thanks.

Comment on Managing with Windfall Profits – Week 56 – 4-Minute Drill for Traders by Ross

Ross — Sun, 13 May 2012 11:51:14 +0000

Norm.
Why not trail your stop, and lock in profit that way, and if it keeps moving your way, keep chasing it.

Comment on Managing with Windfall Profits – Week 56 – 4-Minute Drill for Traders by fastbucks

fastbucks — Sun, 13 May 2012 10:46:48 +0000

Norm – I am more of a medium term trader, but I don’t agree with taking partial profits UNLESS THAT IS PART OF YOUR SYSTEM. When one analyses ones trades you find that most gains are small except for a few outsized ones that come along. You do not want to cut short those outsized trades as they make up most of your profits! Maybe others will disagree but I can tell you that partial profits or early exits (unless built into my system) usually hurt me more than I gain. I don’t think it is being greedy, its about being disciplined and following ones system…

I do enjoy your drills though, they are excellent value.

Comment on Trade Position Correlation – Week 55 – 4-Minute Drill For Traders by MartyE

MartyE — Mon, 07 May 2012 12:31:00 +0000

Your comments re correlated trades and hidden correlations are right on. What is needed is some practical follow on tips. For example — given equity X how do you find the beta and r^2 of X relative to the SPY, QQQ, IWM, VIX… The r^2 values will answer the question: With what index(es) is X strongly correlated? For those indexes with high r^2 one can then look at the beta to discover the nature and strength of the correlation — strong positive — weak — strong negative. Too often writers fixate on “beta” without clearly stating “beta relative to what?” Also, without examining r^2, one has no idea if the calculated beta is to be trusted.

Comment on Trade Position Correlation – Week 55 – 4-Minute Drill For Traders by pasivaan

pasivaan — Sat, 05 May 2012 13:12:47 +0000

Good advice, but seems to be very hard to follow. I trade various futures (e.g. crude, ES, and a couple of currencies) in intra-day timeframes. Everything seems to be highly correlated in the smaller timeframes (in fact I sometimes use this to confirm entry/exit signals from inter-market signals…). Even if you find something that has inverse correlation (say gold or VIX), it does not mean that it is not correlated. Look for example what CL, ES, AD and EC did on past few days – even on say dailies, these are quite often all moving to same direction. All I can see doing is to diversify systems along with markets rather than hope to reduce risk using the same system in multiple markets… Perhaps you can suggest a set of instruments that you think meet your non-correlation requirement, and state in what timeframe you are referring to.

Comment on Realistic About Risk? – Week 54 – 4-Minute Drill for Traders by Mike E

Mike E — Thu, 03 May 2012 14:03:56 +0000

I wish I had this advice 7 years ago. I had to learn the hard way how much risk there is in overnight positions. Excellent advice. I really enjoy your course and the 4 minute drills.

Comment on Reward to Risk Ratio – Week 53 – 4-Minute Drill for Traders by Oren Shafer

Oren Shafer — Sun, 29 Apr 2012 00:13:08 +0000

Thank you, Norman! That is what I’m working on now: taking full 2 (no more early exits caused by fear) and more (when my rules allow to adjust target), reducing losses below 1 when possible.

Comment on Realistic About Risk? – Week 54 – 4-Minute Drill for Traders by Norman Hallett

Norman Hallett — Sat, 28 Apr 2012 13:41:37 +0000

How ‘tight’ has YOUR capital presentation been lately?

Norman – Administrator

Comment on Reward to Risk Ratio – Week 53 – 4-Minute Drill for Traders by Rod

Rod — Wed, 25 Apr 2012 22:09:06 +0000

Hi Norman, Thanks for this drill. I am certainly guilty of all the issues you mentioned: accepting the full stop-out, reducing my profit target as I become more nervous, and moving my stop too early. However, you have allowed the penny to drop: be patient enough to enter only on trades in which I can see the possibility for a greater target, and don’t dive into lesser set-ups. Of course, the question always is “how do I pick better prospects?”. I’m working on that.
Many thanks again, Norman