Big drawdowns create drama

Some people are looking to make big money. Some people are interested in big drama. Those who want big drama like the second kind of graph.

They try and swing for fences, blow up and then again go up. Their need for drama is more important than need for profits.

Objective of trading for me is to make explosive profit and keep it. The objective is not to ride a roller coaster. Personally I want smooth returns without much drawdown and without aggressively using margin.

To have good returns with minimum drawdowns you need to approach trading problem differently. One of the reason why most traders ultimately become swing trader (this has happened for 100 year or more) is to manage drawdowns.

Swing trading concept is based on avoiding drawdowns and yet capturing the fat part of the move.

Swing trading is a template for extracting money out of the market with small drawdowns. If you marry swing trading with momentum you can get explosive returns. If you marry swing trading with growth investing you can get explosive returns. If you marry swing trading with value investing you can get explosive returns.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

2 comments:

Mark said...: Enjoying the blog. I am curious to know what range of incomes you've made as a swing trader over the years. Obviously that is a personal question. If you aren't comfortable answering that I would like to know what you believe is possible to earn as a competent individual trader? Also, at what dollar amount do you think performance starts to drop off substantially; Dec 2, 2010, 1:12:00 AM
Pradeep Bonde said...: Thanks.

I have made hundreds of thousand trading in last 10 years.

If you are competent trader you can shoot for 50% plus or higher. Last year I was up 90% and this year as of today up around 75%.

As your account size increases you can use filter to only take high liquidity stocks. For example I look for 25 million plus dollar volume liquidity.; Dec 2, 2010, 10:35:00 AM

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