karennma
8,057 posts
msg #57194
- Ignore karennma |
11/29/2007 7:49:16 PM
maxreturn
maxreturn 11/29/2007 3:16:21 PM
My breadth indicators and technical analysis indicate that we may indeed have put in an intermediate term bottom BUT it would be wise to look for confirmation before you go all in on the long side.
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Hey Max:
Unfortunately, I was looking for a confirmation on the DOWNSIDE, not the upside. I was soooooooooo wrong!!
Today, I posted the calculation on only ONE of his trades ... JUST ONE, .. EXM, which netted him about $45K in profit on an $11k investment . (see options thread) THAT'S a huge profit in 2 days, IMHO. And EXM wasn't the only one!
So, why "wait" for the confirmation and miss out on such huge gains .. when the indicators are screaming "rock bottom"!
Why not jump in at "the rock bottom" and make 300% .. in 2 days!!.
$$$$$$$$$
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karennma
8,057 posts
msg #57195
- Ignore karennma |
11/29/2007 7:56:51 PM
Do you guys ever watch "Animal Planet" or National Geographic?
Or have you ever seen a cheetah hunt it's prey?
M4M's rock bottom strategy reminds me of a cheetah.
Cheetahs wait and wait for the right time to strike ... but if they wait just 1 minute too long .... they miss the kill.
I say strike at "rock bottom". Why wait?
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maxreturn
745 posts
msg #57196
- Ignore maxreturn |
11/29/2007 8:55:12 PM
Karen, I haven't examined his trades in detail but from what I've been able to glean is that he tends to purchase out-of-the-money options which are very low probability plays. Your timing has to be impeccable to make money buying these options because it is very easy to lose 100% of your investment unless the position moves pretty quickly in the needed direction. If you consistently lose 100% you had better hit the occasional 10 bagger or you'll be out of the game very quickly. Like I said before....Mary was wrong quite frequently calling bottoms just about every other day during the two must recent declines. I wonder if he's honest enough to share with you that he probably lost 100% of his investment several times?
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marine2
963 posts
msg #57206
- Ignore marine2 |
11/30/2007 1:08:13 AM
If someone knew the exact bottom of the market each time it slid downward that person would be asking gates and buffett to shine his shoes lol. No one knows or will know the exact bottom every single time. End of speech.
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TheRumpledOne
6,411 posts
msg #57210
- Ignore TheRumpledOne |
11/30/2007 1:47:30 AM
Billionaires don't shine anyone's shoes...LOL!
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EWZuber
1,373 posts
msg #57212
- Ignore EWZuber |
11/30/2007 4:02:26 AM
karennma, if a chart is in a LT downtrend then very often what appears to be rock bottom isn't. Support areas have a high failure rate in downtrends.
I advocate that one wait until there is a show of strength. Even if it is on an intraday time frame, I would say wait for that bounce. Otherwise you are trying to 'catch a falling knife' and that is typically a losing strategy.
Buying at support is fine but only if a stock is in an uptrend. Then support has a much higher success rate.
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traderrmr
7 posts
msg #57215
- Ignore traderrmr |
11/30/2007 8:38:33 AM
Does anyone know where I can get additional information on using RSI (2) as a trading vehicle? Thanks in advance Titan
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petrolpeter
439 posts
msg #57220
- Ignore petrolpeter |
11/30/2007 11:41:04 AM
Create and backtest your own custom RSI(2) filters right here.
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marine2
963 posts
msg #57248
- Ignore marine2 |
11/30/2007 5:15:33 PM
Traderrmr, talk to TheRumpledOne in our forum here. He is the master expert of RSI(2). He has taught many on how and why it works so well.
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rtucker
318 posts
msg #57249
- Ignore rtucker |
11/30/2007 5:27:38 PM
If youre interested, here is a visual display to see when rsi(2) < 5 occured on the best performing stocks in 2007.
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