1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

STOCK MARKET: Let's talk stocks and investing

Discussion in 'BBS Hangout' started by SWTsig, Jun 2, 2008.

  1. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    haven't u noticed, in the stock market trading world, nothing is ideal.

    the 20dma and 50dma are also arbitrary tools in the tool box
     
  2. Mr. Brightside

    Mr. Brightside Contributing Member

    Joined:
    Mar 27, 2005
    Messages:
    18,842
    Likes Received:
    1,953
    If you are learning trading, I wouldn't waste my time on lagging indicators such as moving averages, MACD, bands, crossovers etc... The only real leading indicator is price/volume which is used by professionals.
     
    whag00 and saitou like this.
  3. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    ur a professional trader?

    Schwab is my broker; it offers trading classes / seminars to clients, sometimes taught by professional traders, many of whom use the MACD crossover

    btw, that fast MACD line is kinda like a leading indicator


    also, i learn from the pros on using such indicators as a doji candlestick, which i put into good use in
    detecting a trend reversal on SE, when the doji was sitting on the 200MA
    [​IMG]
     
    #10463 adoo, Jun 18, 2020
    Last edited: Jun 18, 2020
  4. Mr. Brightside

    Mr. Brightside Contributing Member

    Joined:
    Mar 27, 2005
    Messages:
    18,842
    Likes Received:
    1,953
    I was a professional metals trader for a bank for over 10 years. Now I just trade my own book of mostly the ES, grains, metals, and some currency futures. I only use candlesticks and volume and so did most of my colleagues who were manual traders.

    Schwab is a good broker on the futures side from my experience. There is a lot of education material online regarding volume as an indicator. It will really catapult any trader to the next level.
     
  5. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    good to know; just for my own edification, when ur trading for the bank, what was the avg winning % for the traders?

    in my mind, professional traders can make a living, even if they're wrong more than right
     
  6. CXbby

    CXbby Contributing Member

    Joined:
    Dec 13, 2002
    Messages:
    6,008
    Likes Received:
    4,500
    Goal isn’t to be right, it’s to make money. Hit% all depends on your strategy. Higher doesn’t make it better, all about risk adjusted rate of return.
     
    adoo likes this.
  7. Mr. Brightside

    Mr. Brightside Contributing Member

    Joined:
    Mar 27, 2005
    Messages:
    18,842
    Likes Received:
    1,953
    Most on the desk were on average around 52%-60% win rate. I think one or two guys had below 50%, but still profitable.The elite ones were above 60%. You can easily make money even if you have a 40% win rate, if you are able to ride your winning positions for a longer time frame. Most hobbyists tend to cut their winners short too soon and hold onto losses far too long. Long term trading and making money isn't even about being right all the time, it's more about money management.

    Reminds me of the story by author Taleb (Fooled by Randomness?) in which he keeps buying out of the money put options and loses on 90% of those trades, but then when the market collapsed in 1987 he made all his money back times 1000 on that one winning trade. He repeated this trade several times since then I believe.
     
    adoo likes this.
  8. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    thanks for the corroboration,
     
  9. AB423

    AB423 Member

    Joined:
    Jun 27, 2008
    Messages:
    2,098
    Likes Received:
    573
    Made a quick buck on CARV today, and damn UONE.
    Anyone know any other African American companies?
     
  10. Dr of Dunk

    Dr of Dunk Clutch Crew

    Joined:
    Aug 27, 1999
    Messages:
    37,256
    Likes Received:
    15,296
    I don't know if this was posted on here, but this is so sad, and it probably happens during every crash. It's kind of more sad to me (maybe wrongfully so) since it was a kid :

    Young trader dies by suicide after thinking he racked up big losses on Robinhood
    https://www.cnbc.com/2020/06/18/you...ing-he-racked-up-big-losses-on-robinhood.html

    20-Year-Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance
    https://www.forbes.com/sites/sergei...eeing-a-730000-negative-balance/#6c632da55928
     
  11. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    let's use a live eg for Kmx, who reports tomorrow before market open, to see if MACD crossover is a good momentum indicator.

    [​IMG]

    the fast MACD line has just crossover the slow line, and the RSI is in the 60s;
    on this basis, i'd buy a Jun 26 98.5 strike CALL, the bid/ask mid-point is $4.5

    let see what'll happen to the bid/ask mid-point tomorrow
     
  12. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
  13. CCity Zero

    CCity Zero Member

    Joined:
    Nov 28, 2014
    Messages:
    6,786
    Likes Received:
    2,999
    Yes, this is really sad, what's worse I think is if this wasn't an actual negative balance like perhaps if he was trading spreads and and he got stuck in an unfavorable spot or maybe he didn't know the other party could exercise the option early etc. And RH would have it fixed the next day (assuming it wasn't some mess in ah/pm after the other party exercised the option and his spot hedamw worthless in comparison to the amount).

    Regardless while RH does suck, I think it's interesting that they're stating they will review this process, as far as I know most brokers allow you to answer a simple questionnaire with really basic questions and open you to options that can get you in trouble fast. I also don't think the brokers (clearly state the full risks) ie the other party options early and your position tanks so your max risk is now extremely high and not just like $50/difference between strikes + your premium - but can go very high depending on what you're selling.

    Like safest for new options traders is to have stuff covered and also plans on how to minimize risks but I'm sure RH was stating the max loss of each spread was nothing, so like $500 or something etc. I mean the only time that's the guaranteed max is buying them and moving them or having supercconservative limits set.






    Regardless, still sad to hear especially when someone is so young, and then from the other story how he was always saving money and not known to do this stuff. I wish he could get a do over and I also think RH and other brokers should highlight how at open this should be corrected/spots the risk can go a hell of a lot higher than just the difference from the strikes + premium paid .
     
  14. AB423

    AB423 Member

    Joined:
    Jun 27, 2008
    Messages:
    2,098
    Likes Received:
    573
    Anyone get lucky with UONE? It’s crazy
     
  15. whag00

    whag00 Contributing Member

    Joined:
    Jun 19, 2003
    Messages:
    4,420
    Likes Received:
    1,448
    Big sexy knocking on 200 this AM.
     
  16. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    i think mr. softy will close above 200 today

    • index funds get to re-balance their holdings starting today, until end of june
      • many will buy more msft for window dressing purposes

    [​IMG]
     
    #10476 adoo, Jun 19, 2020
    Last edited: Jun 19, 2020
  17. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    what's happening w the MACD cross-over candidates?

    • CRM is popping
    [​IMG]
    • IBB is inching upward towards all-time high, could use more volume


    [​IMG]

    • KMX just reported; being punished for not beating earnings expectation for Q1
    [​IMG]
     
  18. CCity Zero

    CCity Zero Member

    Joined:
    Nov 28, 2014
    Messages:
    6,786
    Likes Received:
    2,999
    No I kept thinking I missed, but I did get in on BYFC, unfortunately didn't buy much, but profit is profit... Covered some of my risky calls.
     
    AB423 and noscrusir like this.
  19. adoo

    adoo Member

    Joined:
    Mar 1, 2003
    Messages:
    6,658
    Likes Received:
    3,560
    add BX to the MACD crossover watch list,

    [​IMG]
    in addition to the fast line moving up, nearing the crossover, BX has several things going
    • re-established an uptrend, ready to protrude the purple trend line
      • strength behind this move is evidenced by the 50MA crossing above the 100MA
        • provides the tailwind to close that 60.5 - 62 gap

     
    CCity Zero and noscrusir like this.
  20. whag00

    whag00 Contributing Member

    Joined:
    Jun 19, 2003
    Messages:
    4,420
    Likes Received:
    1,448
    A lot of green to red reversals out there...Manage your risk and have your stops in place.
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now