The Pro-fundity Page Daily Trading Tip

"Profound Ditties!"

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3/11/05
Paper Trades

"The Pro-fundity page is designed to stress the importance of Paper-trading to provide experience in many strategies. One gentleman I worked with years ago paper-traded with diligence for over a year before he invested his first dollar. He was manager of a grocery store at the time, he now trades for a living. I know, many market pundits pooh-pooh paper-trading, saying its not the same as investing with real money. Guess what, nothing is the same in practice as the real thing. But does that mean we should never practice first? Give me a break!

So, what does the Pro-fundity page offer in this regard? Firstly, 30 picks each week as potential trading vehicles, in three different categories; Main-picks with sound fundamentals and near-term technical support, screened to avoid any bad market news, Breakouts with the same fundamentals criteria as the main picks, with interesting momentum price patterns, and Quick-picks chosen strictly on the basis of technical price patterns for near-term buys. Additionally, 100 optionable potential rollers are included as a resource for options picks and other trading strategies. 130 selections each week on which Pro-fundity members can exercise paper-trading skills or invest real money. These picks are not repeats each week but screened so they do not show up closer than six weeks. Additionally, a money-management tool named Sell Point is available to place the decision, "When to Sell?" in the hands of the program, leaving our focus on the selection of stocks, allowing us to buy low and sell high!

It has always been Pro-fundity’s mission to help, to provide an internet forum for individual investor improvement; making picks, sizing and placing orders, exiting gracefully (profitably!), and managing holdings. Our picks have never been recommendations. Rather, they provide a training ground where members can create setups, consider risk/reward ratios, exercise trades with different stop levels and help find a system they find comfortable. The ideal Pro-fundity member will study the picks each week, highlighting those that appear to them ready for action, while others need to move a bit satisfy risk/reward levels or to other meet entry criteria."

”Pro-fundity!”

6/11/04

“One thing we should all remember. None of us sets a loss-cut (stop-loss) expecting it to be violated. We set it in a frame of mind much like that when we buy life insurance. This is why some feel “double crossed” when a loss-cut point is violated. The better picker is going to have fewer loss-cut violations.
Another thing to be aware of. I call it the “loss-cut paradox.” The more latitude you allow a stock – that is, the further from your entry point you set your loss-cut – the greater the percentage of winning tickets you will bring to the window. BUT the more frequent will be isolated BIG losses. Tight loss-cuts insure no calamities (well, almost), but there will be more losers in relation to the winners. To set a very tight loss-cut, you must be quite confident that you are getting it in at exactly the right spot – and you must have reasons for that confidence. Otherwise you will be taking small losses repeatedly, even when you're right. And small losses add up.”
Don Worden - The Worden Report

6/09/04

“In everyone’s trading experience there will be losses right along with the wins. That is true of the most experienced professional as well as the greenest novice on the globe. Even the snake oil vendors who promise trades “worth $150,000 with a 30 minute effort one-night a week,” admit to something less than 100% success from their systems. We will have losses, I will have losses, you will have losses! Additionally, we never know where or when they will show up. Unless we understand and accept that as truth, we shall never achieve the distinction of being called a trader.”

6/07/04

“ It is a rare trader who isn’t forced to struggle with the problems of fear, greed and denial. These demons seem to be an inherent part of trading and, unless they are acknowledged, confronted and defeated, defeat is inevitable."