Comments on: My Chat with Trader Interviews http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/ A blog about trading, finances, success and life itself Fri, 30 Dec 2011 14:18:33 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: howard lindzon http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16941 howard lindzon Fri, 22 Feb 2008 07:09:28 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16941 thanks for your shoutout. Nice interview thanks for your shoutout. Nice interview

]]> By: JM http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16938 JM Thu, 21 Feb 2008 22:14:44 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16938 Great interview Chris. I too am a fan of the William O'Neil trading strategies. I find at times a little difficulty sticking with the CANSLIM rules and relying more on technical analysis side sometimes but am trying to reign it in. Do you have a preferred stock screening site you use for the CANSLIM screens or are you just a subscriber of IBD? I like the CMG analogy and agree with your take. I think a few MM rallies to dry out the shorts, and it sems a little oversold here but I would agree the trend is surely down from here. Great interview Chris. I too am a fan of the William O’Neil trading strategies.

I find at times a little difficulty sticking with the CANSLIM rules and relying more on technical analysis side sometimes but am trying to reign it in.

Do you have a preferred stock screening site you use for the CANSLIM screens or are you just a subscriber of IBD?

I like the CMG analogy and agree with your take. I think a few MM rallies to dry out the shorts, and it sems a little oversold here but I would agree the trend is surely down from here.

]]> By: John http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16922 John Thu, 21 Feb 2008 03:38:19 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16922 Ah, I see now. I knew something didn't sound right. Thanks for the spreadsheet link. Ah, I see now. I knew something didn’t sound right. Thanks for the spreadsheet link.

]]> By: Jonathan http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16919 Jonathan Thu, 21 Feb 2008 02:02:37 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16919 Good Luck Chris. I'm looking forward to hearing it. Good Luck Chris. I’m looking forward to hearing it.

]]> By: Chris http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16918 Chris Thu, 21 Feb 2008 01:29:05 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16918 Bill, Good to know someone that traded EXTR and admits it! The interview went well and Tim was a gentleman - I hear you may do one as well. It was a lot of fun; now comes the hard part of hearing myself on tape. Bill,
Good to know someone that traded EXTR and admits it! The interview went well and Tim was a gentleman – I hear you may do one as well. It was a lot of fun; now comes the hard part of hearing myself on tape.

]]> By: Chris http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16914 Chris Thu, 21 Feb 2008 01:12:37 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16914 John, You are mistaken in the understanding of 1-2% risk (NOT CAPITAL). The risk is the dollar amount I am able to lose, not the dollar amount I trade or capital as you state. Example: $100,000 account $50 trade 2% risk = $2,000 Stop = $45 Position Size or amount I trade: $20,000 See my category on position sizing to understand and study the equation. Risk to account and actually trade in dollars is completely different. I thought what you thought when I started in my early 20’s. If I change the stop to $47.50 (or 5% stop), the amount allowed to trade will increase to $40,000 Use this spreadsheet I made to help understand, play with the numbers: http://www.chrisperruna.com/wp-content/calcs/position_size_with_stops.xls John,
You are mistaken in the understanding of 1-2% risk (NOT CAPITAL). The risk is the dollar amount I am able to lose, not the dollar amount I trade or capital as you state.

Example:
$100,000 account
$50 trade
2% risk = $2,000
Stop = $45
Position Size or amount I trade: $20,000

See my category on position sizing to understand and study the equation. Risk to account and actually trade in dollars is completely different. I thought what you thought when I started in my early 20’s.

If I change the stop to $47.50 (or 5% stop), the amount allowed to trade will increase to $40,000

Use this spreadsheet I made to help understand, play with the numbers:
http://www.chrisperruna.com/wp-content/calcs/position_size_with_stops.xls

]]> By: John http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16907 John Wed, 20 Feb 2008 22:41:53 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16907 How on earth do you make any absolute dollar returns when you're only using 1-2% of your capital on each stock trade? It seems to me that unless you have an account in the millions you won't make any real money. You'll need 50-100 ideas that all double each year just to make 10-20%, but that can be very hard to do. Futures traders use the 1-2% style successfully but that's due to the tiny margin they put up. Stock trading uses much less leverage so it doesn't seem like you need to as restrictive with your capital. I'm not sure risking 1-2% of your capital on each stock trade will get you anywhere fast enough to overcome inflation, losses from bad trades, etc. Nice interview though! How on earth do you make any absolute dollar returns when you’re only using 1-2% of your capital on each stock trade? It seems to me that unless you have an account in the millions you won’t make any real money. You’ll need 50-100 ideas that all double each year just to make 10-20%, but that can be very hard to do. Futures traders use the 1-2% style successfully but that’s due to the tiny margin they put up. Stock trading uses much less leverage so it doesn’t seem like you need to as restrictive with your capital. I’m not sure risking 1-2% of your capital on each stock trade will get you anywhere fast enough to overcome inflation, losses from bad trades, etc. Nice interview though!

]]> By: Tyler http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16905 Tyler Wed, 20 Feb 2008 18:55:08 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16905 Chris, This is an excellent interview. I have been following your work for years (back to the RDPD Forum days) and I have really noticed a great progression in your work. Your philosophy has resonated with me from day one. Keep up the great work. To your continued success! ~Tyler Chris,
This is an excellent interview. I have been following your work for years (back to the RDPD Forum days) and I have really noticed a great progression in your work. Your philosophy has resonated with me from day one.
Keep up the great work.
To your continued success!
~Tyler

]]> By: Bill Luby http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/comment-page-1/#comment-16903 Bill Luby Wed, 20 Feb 2008 16:50:30 +0000 http://www.chrisperruna.com/2008/02/20/my-chat-with-trader-interviews/#comment-16903 Nicely done, Chris. Not surprisingly, you offer some excellent suggestions. I must say that I roared when I saw your reference to EXTR -- not that it was funny -- but because it was also my own white whale during the same period. When I finally got over that one and forced myself to learn the appropriate lessons, I became a much better trader. So now at least I know I wasn't the only one. As painful as it was, though, sometimes you need to experience the pain and financial horror first hand to really learn the lesson. Cheers, -Bill Nicely done, Chris. Not surprisingly, you offer some excellent suggestions.

I must say that I roared when I saw your reference to EXTR — not that it was funny — but because it was also my own white whale during the same period. When I finally got over that one and forced myself to learn the appropriate lessons, I became a much better trader.

So now at least I know I wasn’t the only one. As painful as it was, though, sometimes you need to experience the pain and financial horror first hand to really learn the lesson.

Cheers,

-Bill

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