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The secret to research the best strategies to make millions

(Last Updated On: May 26, 2010)

Here is a conversation on reddit.com which pretty well inspired me tostart thinking about blending my knowledge of technology and financial investment. This was pretty inspiring where an indie software engineer launched his own business. He is now clearing millions. Source is http://www.reddit.com/r/IAmA/comments/9s9d7/iama_100_automated_independent_retail_trader_i/

THIS IS THE LAST OF THIS SERIES!! THANKS FOR READING

whatswith_this 1 point2 points3 points 6 months ago[+] (3 children)

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EggplantWizard 0 points1 point2 points 6 months ago[+] (1 child)

EggplantWizard 0 points1 point2 points 6 months ago[-]

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What does the beginning of your research process look like? Specifically, what do you see that leads you to develop ideas that can be exploited?

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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This is a very simple example, but a few weeks ago I noticed that there was some very heavy buying activity around the same time daily in one of my staple lower volume equities. I analyzed it, modeled the activity, and determined that it would likely go on for a few more days. I then traded that behavior for another four days before it broke down.

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[deleted] 6 months ago[+] (3 children)

[deleted] 6 months ago[-]

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[deleted]

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mejalx [S] 0 points1 point2 points 6 months ago[+] (2 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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No, I’m not. With the volume I trade, I’ve gotten great commission rates. Note that the 2 cents average was inclusive of commissions.

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[deleted] 6 months ago[+] (1 child)

[deleted] 6 months ago[-]

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[deleted]

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mejalx [S] 1 point2 points3 points 6 months ago* [+] (0 children)

mejalx [S] 1 point2 points3 points 6 months ago* [-]

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There are a lot more factors to consider than just price. Even with just price, think of what you can come up with as far as market neutral strategies goes, possibly combine it with options. I have a non directional mean reversion strategy running on the ES that relies on specific volatility characteristics and I hedge out with options. The strategy works 95% of the time, but the losses are brutal. Therefore the key caveat with this strategy is to contain losses and that’s where the options come in.

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metorical 0 points1 point2 points 6 months ago[+] (1 child)

metorical 0 points1 point2 points 6 months ago[-]

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How did you decide which asset class to trade when you first started?

Have you expanded in to other instruments as you’ve progressed?

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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I started out with stocks because I needed a broad range of issues to trade. I’ve gotten into SIFs, currency futures, and options since.

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freexe 0 points1 point2 points 6 months ago[+] (3 children)

freexe 0 points1 point2 points 6 months ago[-]

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Do you plan on getting out while you are on top and retire early?

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mejalx [S] 0 points1 point2 points 6 months ago[+] (2 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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No. I’m enjoying what I’m doing and I’d like to continue slowly building up my business. Get it, while the going is good.

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freexe 0 points1 point2 points 6 months ago[+] (1 child)

freexe 0 points1 point2 points 6 months ago[-]

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Have you considered putting some of your money into a fund that you can’t access but pays a monthly wage should you hit hard times?

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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No. I stay invested in my strategies, but I take monthly wages anyways. It dampens my account, but it’s a necessary business expense.

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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