Comments on: Interview with Trader-X http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/ Improve your trading! Fri, 19 Feb 2010 19:36:43 -0800 http://wordpress.org/?v=2.9.1 hourly 1 By: jason http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-21373 jason Mon, 13 Aug 2007 11:03:23 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-21373 X,thanks a lot! why i can't get through your BLOG? X,thanks a lot! why i can’t get through your BLOG?

]]> By: stocktickr blog » Blog Archive » Interview with Richard Todd http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-221 stocktickr blog » Blog Archive » Interview with Richard Todd Tue, 01 Aug 2006 17:15:52 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-221 [...] Read on for more about how Richard trades, how he controls his risk, and his advice on making the jump to start trading for a living. Like Trader-X the other day, Richard has agreed to answer questions in the comments, so ask away. [...] [...] Read on for more about how Richard trades, how he controls his risk, and his advice on making the jump to start trading for a living. Like Trader-X the other day, Richard has agreed to answer questions in the comments, so ask away. [...]

]]> By: jay http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-209 jay Mon, 31 Jul 2006 03:20:26 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-209 X, I am curious how your $risk per trade compares to the %capital risk approach. Would it be fair to ask what your $risk has been (roughly) over time in terms of a %capital range? For example, if you started out with a $50K account and your $risk was $250 (250/50K = 0.5%)... and your account grew to $100K and you were then using $1.5K risk (1.5%)... then the range of %capital would be 0.5-1.5%. Thanks. X, I am curious how your $risk per trade compares to the %capital risk approach. Would it be fair to ask what your $risk has been (roughly) over time in terms of a %capital range? For example, if you started out with a $50K account and your $risk was $250 (250/50K = 0.5%)… and your account grew to $100K and you were then using $1.5K risk (1.5%)… then the range of %capital would be 0.5-1.5%. Thanks.

]]> By: Trader-X http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-207 Trader-X Sat, 29 Jul 2006 12:42:22 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-207 Dave, I use RealTick as my trading platform and charting software. With RT, you just pick the high and low and their Fibonacci tool automatically plots the retracements and extensions. It literally takes 2-3 seconds for each chart. RT is the only platform I have used...I have been using it since the 90's. I am not sure about the capability of other platforms, but I assume they have similar tools? It would be interesting to hear from others who use differnt software. Dave, I use RealTick as my trading platform and charting software. With RT, you just pick the high and low and their Fibonacci tool automatically plots the retracements and extensions. It literally takes 2-3 seconds for each chart.

RT is the only platform I have used…I have been using it since the 90’s. I am not sure about the capability of other platforms, but I assume they have similar tools? It would be interesting to hear from others who use differnt software.

]]> By: Dave http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-206 Dave Sat, 29 Jul 2006 11:01:40 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-206 Hey, X. Just as an experiment, I've been trying to overlay the fibonacci extensions during my chart scans during the day. It seems very time consuming! I'd love to see how you are able to overlay them while looking through dozens of charts during the day without it bogging you down. Hey, X. Just as an experiment, I’ve been trying to overlay the fibonacci extensions during my chart scans during the day. It seems very time consuming!

I’d love to see how you are able to overlay them while looking through dozens of charts during the day without it bogging you down.

]]> By: Trader-X http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-196 Trader-X Thu, 27 Jul 2006 15:25:07 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-196 Hey James- I don't trade options. I think they have a place in an experienced trader/investor's toolkit, but not for me. The problem with options is that most new investors/traders use them as a cheap proxy to trade stocks, and they usually don't have a good understanding of the core principles such as time decay. As a result, many "newbies" lose a ton of money on options. Sadly, a lot of the "services" and "gurus" out there tout options as a way to make a lot of money starting with a little money, and they really compound the problem and losses. If you know what you are doing and you use options as a hedge or trade them as a very small part of your overall portfolio, more power to you. But, if you don't have a lot of money and are just looking for cheap things to trade, I suggest just adjusting your postition size in stocks (ie - buy less shares). With a sound strategy you will build up your account slowly but steadily, with a lot less risk (than trading options). Hey James-

I don’t trade options. I think they have a place in an experienced trader/investor’s toolkit, but not for me.

The problem with options is that most new investors/traders use them as a cheap proxy to trade stocks, and they usually don’t have a good understanding of the core principles such as time decay. As a result, many “newbies” lose a ton of money on options. Sadly, a lot of the “services” and “gurus” out there tout options as a way to make a lot of money starting with a little money, and they really compound the problem and losses.

If you know what you are doing and you use options as a hedge or trade them as a very small part of your overall portfolio, more power to you. But, if you don’t have a lot of money and are just looking for cheap things to trade, I suggest just adjusting your postition size in stocks (ie – buy less shares). With a sound strategy you will build up your account slowly but steadily, with a lot less risk (than trading options).

]]> By: James http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-195 James Thu, 27 Jul 2006 13:15:18 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-195 Trader-X, Thanks for your contributions. You mentioned about trying a lot of things, penny stocks, options etc. Can you elaborate about your experience with options and your advice about it ? Do you still use options ? And if positive, which kiinds of options ? Thanks for your feedback. Trader-X,
Thanks for your contributions. You mentioned about trying a lot of things, penny stocks, options etc. Can you elaborate about your experience with options and your advice about it ? Do you still use options ? And if positive, which kiinds of options ?

Thanks for your feedback.

]]> By: Trader-X http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-185 Trader-X Wed, 26 Jul 2006 16:12:46 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-185 Mike - as I said on my site (and the interview), I have a set $ amount I risk per trade...so, if that amount is $500, then I take the risk from my entry to my stop (for this example, let's say it is .50) and I come up with my position size (in this example, 1000 shares). To answer your question, the dollar amount I risk is what I feel comfortable with. I tend to be a little more cautious, even as my account gets bigger. But it has risen as my account grows, and more importantly as my winning % grows. For years I kept is steady at a lower amount because I hated losing more on a trade...but I also realized I was capping my profits by limiting my position size. Regarding pulling money out of my account - I take a set amount out every month (equivalent to my base salary at my last job - maybe it is time to adjust for inflation!). Mike – as I said on my site (and the interview), I have a set $ amount I risk per trade…so, if that amount is $500, then I take the risk from my entry to my stop (for this example, let’s say it is .50) and I come up with my position size (in this example, 1000 shares).

To answer your question, the dollar amount I risk is what I feel comfortable with. I tend to be a little more cautious, even as my account gets bigger. But it has risen as my account grows, and more importantly as my winning % grows. For years I kept is steady at a lower amount because I hated losing more on a trade…but I also realized I was capping my profits by limiting my position size.

Regarding pulling money out of my account – I take a set amount out every month (equivalent to my base salary at my last job – maybe it is time to adjust for inflation!).

]]> By: Michael http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/comment-page-1/#comment-184 Michael Wed, 26 Jul 2006 13:28:50 +0000 http://blog.stocktickr.com/2006/07/26/interview-with-trader-x/#comment-184 X, A question on your risk per trade/position sizing. So how do you decide the dollar amount to risk per trade? Does it chage as your account size grows or is it just a number that you feel comforable with? Also, do you let your account grow or do you pull all of your profits out? X,

A question on your risk per trade/position sizing. So how do you decide the dollar amount to risk per trade? Does it chage as your account size grows or is it just a number that you feel comforable with? Also, do you let your account grow or do you pull all of your profits out?

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