The Complete TurtleTrader (Michael Covel, 2007)

-

  • Optimal trade
      1. What is it the state of the market?
      2. What is the volatility of the market?
      3. What is the equity being traded?
      4. What is the system or the trading orientation?
      5. What is the risk aversion of the trader or client?
    • Types of error
      • Type I error, also known as an error of the fi rst kind or a false negative, is the error of rejecting something that should have been accepted.
      • Type II error, also known as an error of the second kind or a false positive, is the error of accepting something that should have been rejected.
    • Expectations = Winning Percent x Average Winner - Losing Percent x Average Loser
    • Top 10 hedge fund earners (2005)
        1. James Simons, Renaissance Technologies Corp.: $1.5 billion
        2. T. Boone Pickens, Jr., BP Capital Management: $1.4 billion
        3. George Soros, Soros Fund Management: $840 million
        4. Steven Cohen, SAC Capital Advisors: $550 million
        5. Paul Tudor Jones II, Tudor Investment Corp.: $500 million
        6. Edward Lampert, ESL Investments: $425 million
        7. Bruce Kovner, Caxton Associates: $400 million
        8. David Tepper, Appaloosa Management: $400 million
        9. David Shaw, DE Shaw & Co.: $340 million
        10. Stephen Mandel, Jr., Lone Pine Capital: $275 million
      • Tips
        1. Trade long or short, but not both.
        2. Trade the same number of contracts in all markets.
        3. If you have $100,000 to risk, you should risk $25,000 on every trade. 
        4. When you enter, you should know where to exit if a loss occurs. 
        5. You can never go broke taking profits.
        6. The majority of traders are always wrong.
        7. Average profits should be about 3 or 4 times average losses. 
        8. A trader should be willing to let profits turn into losses. 
        9. A very high percentage of trades should be profits. 
        10. Needing and wanting money are good motivators to good trading.
        11. One’s natural inclinations are good guides to decision making in trading.
        12. Luck is an ingredient in successful trading over the long run.
        13. It’s good to follow hunches in trading.
        14. Trends are not likely to persist.
        15. It’s good to average down when buying.
        16. A trader learns more from his losses than his profits.
        17. Others’ opinions of the market are good to follow.
        18. Buying dips and selling rallies is a good strategy.
        19. It’s important to take a profit most of the time.
      • Ask these questions before making the trade
        1. What is it the state of the market?
        2. What is the volatility of the market?
        3. What is the equity being traded?
        4. What is the system or the trading orientation?
        5. What is the risk aversion of the trader or client?

      Comments

      Post a Comment

      Popular posts from this blog

      Kokology Questions & Answers

      -
      [These are extracts only, to see the full details kindly purchase the original book] Kokology is the study of kokoro (Japanese: 心) which in the aforementioned language means "mind" or "spirit". ... The books were published in 1998 in Japan and became a Japanese bestselling phenomenon. The books were translated and became available in the United States in 2000. Below are some questions and answers for sharing: A Desert Journey Boring class settings, you drifted away and enter the eternal desert... 1. You are riding a camel and you are near exhaustion, what will you say to the camel? 2. Before you die of thirst, a traveler point to you a oasis, who is this person you know? 3. You finally come to your destination which is a town, what is your feeling? 4. After you dismount, another person took over, who is this guy? - 1. What happened when love is lost? 2. Who always help or comforted you? 3. What is your feeling after getting past lost love?...
      Read more

      Neuro-Linguistic Programming Models Summary (02 of 14)

      -
      GeneraliSation The The Meta Model generaliSations make explicit the way we summarise and categorise our experiences. Generalisations are basically the rules we use to manage life. There are usually exceptions or counter examples to rules. These rules and categories create self-imposed or company wide limitations. Examining these limitations is a powerful problem solving strategy. By generalising one or a few experiences, we can figure out what to do in a different experience. We learn to drive a particular car, and then use that experience to drive a new one. If we weren’t able to generalise, we would have to learn how to drive all over again. Problem Solving Examining categories and generalisations is an excellent creative problem solving strategy. What are the experiences that come to mind when you think of money for instance? We typically use an emotionally charged experience to stand in for all our experiences in a category. We generalise and categorise all kinds ...
      Read more

      Neuro-Linguistic Programming Models Summary (11 of 14)

      -
      The Inner Hero Pattern Beat the drum and let the poets speak. This is the day of purification for those who Are already mature and initiated into what love is. No need to wait until we die! There’s more to want here than money And being famous and bites of roasted meat. --Rumi Life can be lived in many ways. You can make it about making money or winning at all costs, or pleasing other people, or perhaps never standing out. Or you can live your life as a great journey of consciousness, one filled with many challenges and surprises, one that makes a positive contribution to the world. I want to talk here a bit about these different paths, emphasising that the Self-Relations approaches of Generative Self and Generative Trance are especially tools for supporting the latter path. Life as a journey has been described by many people, most notably the mythologist Joseph Campbell.  Campbell (1949; Gilligan and Dilts, 2009) studied the stories of many different cultur...
      Read more