Here’s an interesting interview with Avery “TheRumpledOne” Horton. I didn’t know anything about him before this. His approach is different than most traders I know. He seems to understand that consistent small wins add up, which was the foundation of my stock trading style. I mean, check out the quotes below about exits and daily profits… it sounds just like something I would say. So, obviously I think he’s a frickin’ genius (although the first quote below makes him sound a little nutty, it makes more sense in the context of the rest of the interview).
TG would say: Go listen to it now. Because I said so!
Some quotes:
put [the chart] on the wall, walk back six feet, take a dart, throw it at the chart. Walk up to the chart with a level, and draw a horizontal line where the dart hit the chart. It’s real simple: if the price comes up to the line, go long. If the price goes down to the line, go short
all the books and people say “don’t trade the open,” but that’s where the easy money is
you could put up a 1-min chart, a daily chart, a 15-min chart… doesn’t really matter what time frame, because I’m at price levels
… there’s probably been about 5 or 6 trades [today] off of AAPL. I mean if you’re trading a thousand shares, and if you just take a dime each time, that’s five or six hundred dollars a day.
See, that’s the funny thing: most people are always asking me about exits and stops and things like that. As far as the exits, it’s like if the price stalls, you get out of the trade. Sometimes you get a little, sometimes you get a lot. It’s just that simple, there’s no reason to take a chance.
i have read in several places that many ES traders are using large contract size for short gains several times per day…if u have a consistent way of doing it, then what may not look like much adds up — especially when trading multiple contracts
I think the dartboard technique’s goal is similar to Richard using those new charts.. get rid of noise to make real decisions. :)
E.
I forgot to thank you for pointing out the Traderinterviews site. Good stuff, I’ve listed to quite a few of the back episodes.
A number of people on PSW use AAPL options as their sole strategy. I understand choosing a volatile stock to scalp. It seems to me that indexes are better suited to market-neutral option strategies, which is what I do–take money from people that want to gamble.
“Because I said so” always works with my kids…
You mean there are people it doesn’t work on?
Let’s just say, I have a very high success rate…
Hi, Tis I, Avery aka TheRumpledOne.
Thanks for the kind words.
You can read more about my Buy Zone method here: http://www.kreslik.com and also download the free indicators.
And I have 2 interviews:
http://www.traderinterviews.com/programs/permalinks/TI_11-29-07_AveryHorton.htm
http://finance.myfoxmilwaukee.com/fox?Account=myfoxmilwaukee&ChannelID=3132&GUID=3900951&Page=MediaViewer
If you KEEP IT SIMPLE and ARE NOT GREEDY, you’ll do fine.
I totally agree with Horton. The only thing that I learned from him is that the price can go up OR down. That’s the only fact that you can take for granted. And it doubles my money every 5-6 months. And normally I donated to his paypal the moment I opened my eyes thanks to him. Programing my own EA was a hole different story.