Combining System Trading & Discretionary Trading Into A More Effective Approach - Stock Day Trading

By Frank Miller


New and experienced stock day traders alike grapple with an all important question: Which method is the best approach to stock day trading, a system approach or a discretionary approach? While each approach has its advantages and disadvantages, the correct answer may, in fact, be a combination of the two approaches. System trading means creating a strict set of objective and mechanical rules for identifying if a trade opportunity exists, when should you enter the trade, and how do you exit the trade. The operative words are "objective" and "mechanical". If a set of trading rules can be programmatically reduced to a series of computer instructions, then the rules are objective and mechanical. One of the main advantages of system trading is that it enables you to produce consistent trading results. In other words, your actual trading results should be identical to the results generated by the system. This type of trading requires very little thinking or analysis on your part, and all you have to do is follow the trading system rules without deviation.

The first is that the day trader is less exposed to event risk than a long term trader. I get in and out of the market as quickly as possible. I am in the market during primary trading sessions, so my stops are normally filled at or near the specified price. A long term trader may find that an unforeseen event triggers big moves when primary markets are shut, forcing price to gap way beyond protective stops when markets re-open. Minimizing exposure to event risk while trading leveraged instruments is a key benefit of day trading, and why I think it is one of the least risky forms of trading when done properly. Another reason I prefer day trading is that I can work through losing spells more quickly. All trading methods encounter drawdowns when traders have a losing spell. If a typical drawdown for your system spans a period of 10 trades, and the average duration of each trade is 2 weeks, you face drawdown periods averaging twenty weeks. But if you are a day trader completing one trade each day, your average drawdown period is just 10 trading days. If you complete more than one trade per day, the drawdown period is even shorter. It is never pleasant being in drawdown and it is easier to stick to your system if drawdowns are short. Twenty weeks, or more, in a loss situation tests the resolve of any trader.

Day trading can be considered as an offspring of high speed electronic communication networks. Most day traders today trades markets from a distant location such as their home or work area. They use trading software, the direct access trading platform, installed in their computer connected to internet to execute trades in real-time. In order to qualify for the trades, the trader must maintain a margin in the corresponding market. It is the day trading broker who maintains the margin for the trader and provides the direct access trading platforms. Although there are web-based trading platforms available, they are not suitable for day trading.

Day traders work in short time frames, so trade profits are smaller. Where it might be reasonable for a position trader to target 100 points of profit over a period of several weeks, the day trader may realistically be limited to targets of 5 - 10 points. If trading costs for each trade are fixed at, say, 2 points, you can see that they constitute just 2% of the long term target profit, but may be 20% - 40% of the short term target profit. Unless a market has sufficient volatility for a trader to target profits significantly larger than trading costs, it is not suitable for day trading. Fortunately many such markets exist. Soybean and wheat futures are good examples. Suitable markets often have another advantage. Their periods of volatility frequently occur at specific times, typically short periods near the open and close of trading sessions. For example, I can usually enter my daily trade during the first thirty minutes of the trading session.

As told earlier, there are a variety of products available for day trading. The most popular ones are the stock and the forex currencies. Others include options like stock options and futures options, and futures like currency futures, stock futures, stock index futures and commodity futures. Day trading facility is available for most stock, options and futures market, but note that most brokers offers services for limited markets/exchanges. The trader also must be keen to choose markets according to the product they are trading, their financial status, the brokerage they are affiliated to, the trading system they uses, and their geographical location.

There is a third approach to stock day trading which combines both approaches described above. The hybrid trading approach merges together system trading and discretionary trading. Under a hybrid trading approach, you would employ objective system trading rules for those parts of the decision process that will enable you to achieve consistent results, but discretionary decisions would only be allowed for situations that don't materially affect the outcome of the trade. For instance, identifying when a trade opportunity exists and when to enter the trade would be performed under objective system trading rules. However, discretionary decisions regarding how and when to exit the trade would only be allowed after your first profit objective has been satisfied because the essence of the trade opportunity has been met. A hybrid trading approach can often produce more effective results than either a system trading approach or a discretionary approach by relying on the rudimentary idea that sometimes the sum is greater than the parts.




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The Value Of Headstones Gravestones And Graves Headstones

By Timothy Tree


Headstones tombstones and other kinds of grave markers sometimes conjure up memories of loved ones and that can make you feel sad. However, they also are an important reminder of someone that was very important to you, and that can make you smile and feel warm inside. If you wish to express your true feelings, choose the best gravestones you can find.

Someone is never completely gone because they live in your memory. Perhaps an older friend or relative was a constant source of advice and someone that you depended upon a great deal. When you visualize that person you then can ask what they would do in your situation and gravestones help with the visualization process.
Stone Graves For Mom and Dad Theme


Once people have died you can no longer talk directly to them and tell them what they mean to you. Yet, a lovely headstone becomes a monument to one's life and demonstrates the amount of respect and love that you have. Because no one has passed through death's door and returned, you cannot be certain that the dead are not around to see what you do.

If you have lost both of your parents it can make life difficult. Many couples choose grave sites right beside each other, so they can never be apart again. These people deserve a finely made grave monument that depicts their life together, and this can best be done with a beautiful image of the parents cast into stone. Everyone that visits the grave sites will be impressed.

If you are looking for something that is moving and impressive, consider headstone art. Skilled craftsman mold beautiful images of cherubs, angels, and many other things into stone. You may choose special monuments that come with built in flower vases. This makes bringing flowers to the grave, easy and convenient.

No matter what ideas you have for gravestones you can realize those dreams with a custom built headstone. Perhaps you want something to mark your eternal resting place and you can have a marker created exactly to your specifications. You also can include any type of design or images that you like.

It is hard to place a value on a beautiful and well designed headstone. You can check into Headstones Tombstones, and all kinds of beautifully crafted markers from the comfort of your home. All you have to do is visit the website of a trusted online monument service for the details.




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Learning Ways On Protecting In Ground Pools For The Cold Season

By Eugenia Dickerson


In ground pools Atlanta should be prepared now that the winter is coming. You will need to protect it in order to save yourself from a lot of work at the end of the season. Thus, here are tips to help you.

The first step that you must be making is to have knowledge about the appropriate time of the year wherein you will start doing this kind of task. Usually, people will prefer doing this during fall and you will have a clue that you are in the best timing when it is already cold to swim therein. Also, this time is critical because of the falling autumn leaves which lead to serious damage and clogging of filters.

The next thing that you must be concerned with is the ascertaining that you have already obtained all of the supplies as well as the equipment that will have to be utilized together with the chemical products to complete the work. These products have a different formula with those that are appropriate for summer. These has to contain ingredients to keep the balancing of pH and to keep the water algae free.

Another matter that you should also have in mind is that there is no more need to be turning your heater on but you may turn it off. Although this step might seem to be negligible, this is also crucial because this appliance would be consuming much of your energy or fuel supply and you will end up having higher utility bills. Well, you need not heat the water during these months especially if its outdoors.

One more step that you have to take is to clean all the components which is very crucial since this will have to sit for a long time. Have some time off in order to accomplish this as it would be needed at least to scrub the walls. However, if you have those types which are made up of metal, do not scratch them because they will rust when you accidentally remove the coating.

Moreover, after you are already done with the cleaning and in the adjusting of the pH, there are still other things that need to be done. You are already aware that it will be laid to rest for a long time and thus you should be pouring extra amount of the sanitizing chemical that you are currently using. You should also add solution that can kill algae.

If there are also tables, chairs and other devices you should be gathering them up. Then make sure they have been cleaned before you will be putting them on storage which could be in your pool house, garage or shed. This is necessary to protect them form the environmental elements that might damage them.

Furthermore, you also have to give care to the pump and in beginning to do it, you should disconnect it from its electrical lines and then tidy up the parts. The skimmer baskets together with the filters should also be pulled to get rid of the debris they caught. Any installations such as ropes and ladders floating freely should also be removed.

Finally, the step that is yet as need to be done to prepare in ground pools Atlanta for winter is to use pool covers. Be sure it is enough for the entire surface. Have it secured safely.




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Tips For Choosing The Best Used Office Furniture

By Eugenia Dickerson


Whether you are starting a new business or you already have an established one, buying office furniture is a good way to keep your office organized and manageable. Just the same way you should exercise caution when buying a secondhand car, it is the same way you should do when purchasing used office furniture. You need to be careful not to waste your hard-earned money on useless furnishings.

Secondhand office furnishings come in different types, styles and shapes. The market is full of these products. These may include chairs, desks, dividers, cabinets, and sofa sets. You should explore the market well to find honest dealers. Beware of unscrupulous dealers who sell secondhand items that are completely used up. Such dishonest people want to make a lot of profits by selling useless furnishings to desperate buyers. You need to choose wisely so that you do not dish out your money on useless items.

Choose furnishings that have no signs of decay. Note that some individuals sell their used furnishings because they have started to develop signs of decay. Avoid furnishings with split wood, the ones eaten by parasites like ants, or those that water has been poured on them. Thoroughly inspect the furniture to make sure that they are perfect.

Find out whether there is any unpleasant spell coming out of the furnishings. The smell may be due to the items being kept in a damp place for quite some time. This may have led to accumulation of mold and other rotting substances. If you notice this kind of smell, check whether a little fresh air can make any difference. If there is a deeper problem, you need to look elsewhere.

Safety should always be given the first priority. You need to be concerned about the safety of you and your employees. Consider looking at all the supporting areas on chairs and sofa sets to make sure that they will not collapse when someone sits on them. Consider giving chairs a sit test before you leave the shop. Check to see that all the areas have the necessary screws and are not rusted.

You should not concentrate much on how these products look like. The appearance is not that important. The beauty should be the last thing to consider when buying these types of furnishings. What is more important is the durability and safety of the pieces of furniture. Make sure that the items you are going to buy will serve you for the next several years.

Price is another important aspect to look at. There are many dealers out there that sell these items at affordable prices. Look for a dealer whose prices are reasonable. Do not be attracted by the lowest prices in the market. This is because the items could be of very low quality, or they might have been used exhaustively.

Try to exercise a little patience when searching for used office furniture. Remember that these are items that have been used elsewhere and might have a lot of defects. Take your time to inspect the pieces well before you make up your mind. Always purchase from established dealers in your location.




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