Thursday, August 23, 2007

Real traders and the CCI........where are they now?


Mittens has registered for the workshop coming up the end of Sept, and is now doing her homework to prepare. Seems the thousands and thousands of emails that have come in telling me what traders would like to hear....well the CCI doesn't seem to be at the top of the list. All I thought was "DANG", those goes the latest research into the Hangin Chad setup that during it's testing it was found to have a winning ratio of 173%. OK, OK, just kidding again.......it was only 170%.

The interesting thing so far, is that people want to understand more about longer terms, stocks, options, timing for options, seasonal of stocks, ticks/tiki/prem relationships, position sizing, ramping it up at the right time, when to trade and why, when not to trade, what is the best setup, best trigger and how to manage the trade to have the best overall return and why and some even want to trade for the entire week.....
A week with me, WOW....now that would take some real stones. My view of the workshop is as always.....simple. I understand, because of having been there, having been run over, stomped on, spit out and chewed up the kinds of things that jam up a trader. I can only tell you how I was able to overcome that crap and move to higher ground, whether or not you can.....well a year from now you can look back and decide where you are.

We can talk about everything and anything.....but one thing is important, all principles of trading should work on all time frames and all markets. It's like your kids, they are all different, but at the same time they are all the same because of the principles that you give them, if that makes sense.

I can't show you how to trade stocks for the long haul like a month or an entire year because we will only be together eye ball to eye ball for a few days. But the ideas that works down on a 144 tick and the price action is the same for long term trading as it is for intra-day trading. The amount of risk involved might be great in the stocks, have you ever owned a stock and something happened just before earnings and it got cut in half.........

I owned the Finished Line, at one time, going into earnings, I had done my research and it was solid (watched my kids spend $350.00 one night), great layout, easy flow thru the store, informed salespeople and so on.......So the day before earnings were to come out I was going to sell the stock and take everyone to Outback for dessert.
Meanwhile, Nike came out and reduced their earnings, said they were closing plants, huge inventory of those 200 buck sneakers and talk about an ugly report......OF course, Nike got it's stock cut in half the next morning....and you guessed it, that was the day I was going to sell my Finished Line....and you guessed it again since 85% of Finished Line product was from WHO???????? We ate dinner at Taco Bell and split a taco.........

SO we will work on these problem areas during the workshop for sure....do I have all the answers, I don't think so. Can I give you comfort from having you tell me your war story.........I guess as long as it doesn't involve a hug or something.......

6 comments:

Anonymous said...

Yes, I must know about Mitten's latest pattern, the shampoo, at the next Trade Along. My money's not leaving my account fast enough :)

Anonymous said...

experienced traders that have been with W a long time know the minimal value of cci but few speak out.Why? Also PFG must know the same so why would they support these trade-alongs? I probably dont want to know why at the risk of being disillusioned about the integrity of people.

Anonymous said...

The value at Woodies is the people and the experience they bring to the party, not the CCI itself which, frankly, is just another indicator. The patterns are breakeven at best and the 'Room' results just shouldn't be allowed to be put forward as accurate.
That said, the lessons learned there can be carried forward into ones own trading and once the real trading journey starts then the trader can prove or disprove things for themselves. Unfortunately Woodies room is full of new impressionable lazy people who believe what they are told and who are looking for the 'quick' way to riches. Dream on.
Its wholly unfair to criticise Woodies room in general and to pick on some of the good people therein. However, specific criticisms are well placed and more than justified. I cannot understand how things have been allowed by the regulators to continue. Education is one thing but self promotion through trading results that are fantasy is purely misleading, especially now that the room has commercialised and wants to start charging for the 'auto traders' at $200 a setup.
The justification is that the hardware has to be bought and supported but its really just an earning opportunity. If 100 people sign up for just one system and they give it just three months then that $60,000. How much of that is really 'support' costs? Woodies is turning into a revenue machine. Nothing wrong with that. Everyone is entitled to earn a buck. But, shouldn't it be declared as such and not hidden behind 'charity' and 'support costs' and 'administration' etc.

Anonymous said...

At least we know that Mittens is innocent!

Miles said...

Hello Dennis,
I found your blog about a week ago and I can't stop reading...good stuff! I was wondering if any slots are left for your workshop next month.
MilesT

Sport said...

There is always room for another trader......:)