Comments on: Protecting the Downside in Trading http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/ Trading blog for day trading, swing trading, and trading psychology Tue, 07 Feb 2012 17:25:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: The Importance of Losing Small | TheStockBandit.net http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/comment-page-1/#comment-139292 The Importance of Losing Small | TheStockBandit.net Tue, 05 May 2009 16:09:26 +0000 http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/#comment-139292 [...] bump or bruise is far easier to overcome than the occasional amputation.  The point is this - protecting the downside offers you a safety net to fall into.  Why not use [...] [...] bump or bruise is far easier to overcome than the occasional amputation.  The point is this – protecting the downside offers you a safety net to fall into.  Why not use [...]

]]> By: 4 Trading Goals You Can Set Right Now | TheStockBandit.net http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/comment-page-1/#comment-108828 4 Trading Goals You Can Set Right Now | TheStockBandit.net Tue, 14 Oct 2008 14:23:59 +0000 http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/#comment-108828 [...] Making sure to update your thresholds either on the weekend or on Monday morning is the best way to stay on top of it. Doing so will ensure that you protect the downside during a tough stretch (as the R dollar-equivalent is reduced), while also maximizing profitability during good stretches of trading (as the R dollar-equivalent increases). The point is to trade smaller when doing poorly, and trade larger when doing well. [...] [...] Making sure to update your thresholds either on the weekend or on Monday morning is the best way to stay on top of it. Doing so will ensure that you protect the downside during a tough stretch (as the R dollar-equivalent is reduced), while also maximizing profitability during good stretches of trading (as the R dollar-equivalent increases). The point is to trade smaller when doing poorly, and trade larger when doing well. [...]

]]> By: TheStockBandit http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/comment-page-1/#comment-7146 TheStockBandit Tue, 01 May 2007 11:49:36 +0000 http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/#comment-7146 When it comes to hedging, you are exactly right Vicente. However, I am mostly referring to just the discipline needed to cut a trade when it is time. Most inexperienced traders fail to set a "get-out" point, but if they would do that then they'd see much better results. Jeff When it comes to hedging, you are exactly right Vicente. However, I am mostly referring to just the discipline needed to cut a trade when it is time. Most inexperienced traders fail to set a “get-out” point, but if they would do that then they’d see much better results.

Jeff

]]> By: Vicente http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/comment-page-1/#comment-7141 Vicente Tue, 01 May 2007 05:43:43 +0000 http://www.thestockbandit.net/2007/04/30/protecting-the-downside-trading-stocks/#comment-7141 I think that the applications of derivatives in the form of options is a venue that should be greatly explored when it comes to protecting your capital from a down side in any trade that will involve more than a single day. Protective puts, married puts, and collars offer good protection. I think that the applications of derivatives in the form of options is a venue that should be greatly explored when it comes to protecting your capital from a down side in any trade that will involve more than a single day. Protective puts, married puts, and collars offer good protection.

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