Frank had a lot of refreshing takes in this episode, I love the focus on studying year-to-date winners and looking for stocks just starting their moves. What were your takeaways? Any notes that you came away with? Leave a comment below.
@marcostrujillo26172 жыл бұрын
Great episode, but Frank really lost me at not believing in R/R ratios 🤔... this is very puzzling because that only works in moves that "don't look back", or you would have to put a stop loss at the very entry price, or doing something dynamic like putting a trailing stop (even here you need some bearings), but obviously any of these options would SEVERLY limit your trade opportunities. If you don't size the drag-down that you are willing to take in each trade and make it proportional to your profit expectations you are bound to lose money in the long run... that's just simple mathematics. I've thought a lot about this and really can't find a way around it. Let's say that the very moment you put the trade the security moves up a little bit and then starts dragging down into losing territory: what do you do? how do you know how far to let it go down? I can understand the time limitation part and say "well after my trade horizon period of time has elapsed I'm gonna take the money out of the trade regardless", that I can understand better, but again this doesn't invalidate my point. The way he talks makes it look as if the majority of trades he gets in have little to no drawback "into the red". I've considered strategies such as "reassessing the R/R ratio" at intervals during the trade and adjusting accordingly given how the price action/trade context has evolved in the interval, but this would exponentially complicate each trade (unless done automatically). He says that "targets are made up", well yes, obviously they are and that's why you want to do some technical/situational/historical analysis to have a rough idea. This holds true even in automated algorithmic trading. Then he says "and I also believe that the R/R ratios are also made up... kind of"🤔... R/R ratios are intrinsically related to targets which by his philosophy would also need the "kind of" qualificative then. What does he mean by "kind of"? If anyone could illuminate me in this regard I would really appreciate it.
@figgy1632 жыл бұрын
This stands out as one was one of the best interviews I have watched, absolutely superb, mindset, execution, precision sizing, etc...excellent. Thanks to your both.
@TradeRisk2 жыл бұрын
That's awesome Tony! Glad to hear it, Frank brought his A game and it shows.
@skrillawins27782 жыл бұрын
New York State of Mind! Love this guy! Thank you both.
@TheStrataminor2 жыл бұрын
After having traded for quite a while, Frank is right, it really is an individual process that you simply have to work out for yourself. Yes, get education and learn how to stop losing money unnecessarily but as for something that will work perfectly for you, you really have to mould whatever method to yourself or develop your own, but as Al Brooks says, 'One of the greatest things a trader can do is learn to not take bad trades / spend all day weeding out bad trades' (something like that). Great episode!!
@TradeRisk2 жыл бұрын
Well said! Glad you enjoyed the episode.
@IIIKingsMedia2 жыл бұрын
Fantastic Interview Ev & Frank! Keep them coming!
@TradeRisk2 жыл бұрын
Thanks and will do!
@gardnerdavis2 жыл бұрын
A lot of great advice.
@michaelnelson79822 жыл бұрын
Thank you, amazing show!
@TradeRisk2 жыл бұрын
Glad you enjoyed it!
@nukelaloosh47952 жыл бұрын
right right right
@jasonoliver79742 жыл бұрын
It wasn't clear to me his correlation between year to date winners and picking stocks... Could you clarify please.. He talks about year to date winners that are beaten up. How does that make sense...? I just did a search on stocks up 300 to 800% for the year... Now what ? Its easy to find the hottest sectors
@TradeRisk2 жыл бұрын
Hi Jason, I don't want to speak for Frank or put words in his mouth, but as I understand him, you want to look at the top performing stocks within your time-frame and analyze what they looked like before they became the best performers. Can you narrow down common characteristics or patterns so that you can identify future winners before they move, is ultimately the goal.