tag:blogger.com,1999:blog-20374666.post5512316615852279690..comments2024-03-05T07:50:04.017-05:00Comments on Stockbee: Invest in a setup idea....Pradeep Bondehttp://www.blogger.com/profile/16750002566366368685noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-20374666.post-87570469694380178302011-12-07T16:17:46.125-05:002011-12-07T16:17:46.125-05:00I have that book. It has some good setup ideas.I have that book. It has some good setup ideas.Pradeep Bondehttps://www.blogger.com/profile/16750002566366368685noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-54482649633294725682011-12-07T16:16:29.518-05:002011-12-07T16:16:29.518-05:00Hmmm.... Well, I guess that would be Minervini'...Hmmm.... Well, I guess that would be Minervini's proprietary methodology :). However, some very interesting methodologies of analyzing bases and breakouts from them are documented in Dr Samir Elias's book, 'Explosive Trading strategies'. I found it to be an interesting read. Even though i am aware that you eschew classical TA. It still is worth one's time as it throws up a lot of food for thought.<br /><br />Regards,rmikehttps://www.blogger.com/profile/08641714609257287983noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-53595259229535246662011-12-07T16:09:53.319-05:002011-12-07T16:09:53.319-05:00no it is not based on EP. It is a base breakout se...no it is not based on EP. It is a base breakout setup. But the buy point is based on unique patterns he has discovered that show up before the b/o.Pradeep Bondehttps://www.blogger.com/profile/16750002566366368685noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-27675323555005507522011-12-07T16:07:15.500-05:002011-12-07T16:07:15.500-05:00Read up about SEPA methodology since you mentioned...Read up about SEPA methodology since you mentioned it. I may be mistaken, but on the surface it seems to be an amalgamation of Neglect + EP (positive surprise) + Quarterly/ Monthly momentum + PEAD. This kind of a setup can only be traded after the fact based on PEAD and persistence of momentum after the fact of an EP. I guess it would be difficult to build up an anticipatory bias before the fact (of EP) unless one had access to insider info.<br /><br />Regards,rmikehttps://www.blogger.com/profile/08641714609257287983noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-25001549877487584332011-12-07T08:38:08.556-05:002011-12-07T08:38:08.556-05:00Risk management is integral part of these setup id...Risk management is integral part of these setup ideas. Risk management by itself does not lead to superior performance, even though many claim that. All elements of trading, setup, risk management, equity selection, timing are critical to superior performance.Pradeep Bondehttps://www.blogger.com/profile/16750002566366368685noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-32514774124309456802011-12-06T10:16:25.299-05:002011-12-06T10:16:25.299-05:00I hate to disagree with Pradeep because I know he ...I hate to disagree with Pradeep because I know he is a good trader.<br /><br />This over emphasis on finding and mastering the "set up" is missing the point. There are no sure shot "set ups". None. Also, it is not about finding the right set ups. Someone could trade ALL the same set ups as Mark Minervini but still their performance could be vastly different compared to Mark.<br /><br />The best traders (Tudor or Seykota) would probably not right on a trade set up 30 to 40% of the time. No amount of studying set ups will make you more accurate than that.<br /><br />Focusing on "set ups" or being right in a trade is basically equivalent to focusing on wrong statistics the way it was portrayed in the movie Moneyball.<br /><br />The idea is to instead, focus on trading a few patterns, expect to be right only 30% of the time but cut your losses when wrong. The right statistic might be to focus on risk / reward on trades rather than the percentage win number.<br /><br />Just saying...!ataraxia101https://www.blogger.com/profile/17464285238299077659noreply@blogger.com