Topic: Goomboo's Journal - page 56. (Read 281462 times)

Agreed man...it's the truisms / wisdom of a field that puts all the other parts into perspective.

I hope you enjoy the book!

Quoted for emphasis.

I'll talk to Jessi about, but he has his hands full with revisions to current Gox Alarm tool, and he is also
prototyping a new Bitcoinica Alarm tool.

Going to dig though my Sierra tool and see what they have.

Sierra Chart does have an event/alarm system, although I haven't one set up myself.

ohhhh that would be awesome!  it couldnt be much harder than http://www.bitcoin-tools.de/ ?

Does anyone know of any BTC trading tools that has alarms for moving average cross-overs? 

Does Sierra Chartfeed have such alarms?

Thanks in advance!

GoomBoo, this is really great information, thank you for sharing.

Tempted to experiment with the GoomBoo System, curious to see what happens.  

If I make any profits, will pass on a 1% donation to you for each successful trade.

Sent you a donation now, because of the quality of trading advice you have provided on this thread.

Please keep the thread going!

That was my trading strategy in highschool for about a year on investopedia, I doubled my fake 100k. Someone needs to setup a fake market for bitcoins sorta like how investopedia has it setup, I'd be willing to contribute to that project.

this is such great advise.  and this thread is epic!

^This.  Which raises the question of the longevity of trades.

The use of hourly data capture predisposes the trading longevity to short time frames (less than a week).
That is what I call "hard trading".   Over exposure to data and the emotional strain make it difficult to sustain.

Instead widen the time..... from hourly analysis to daily.

Hourly with 10/21 over 1 month. (fast)
http://bitcoincharts.com/charts/mtgoxUSD#rg30zigHourlyztgCza1gEMAzm1g10za2gEMAzm2g21zv

Daily with 10/21 over 2 months. (slow)
http://bitcoincharts.com/charts/mtgoxUSD#rg60zigDailyztgCza1gEMAzm1g10za2gEMAzm2g21

I simple trading strategy is to combine the two indicators:

i.e Use the slow indicator to determine your trend and the fast indicator to enter and exit.
When the "slow" is long, take all "fast buy" signals.
When the "slow" is short, take all "fast sell" signals.

The current price action from the 2 indicators suggest a "fast sell" into a "slow buy".  Which is not optimal but a good trader can scalp some change.

Aside:
The phenomenon of the "day trader/tick traders" used to be exclusively the domain of locals (private individuals with full licence to trade) on the exchange. 
The Clinton era bull run brought the concept to the "masses".
Throw in HFT, Bitcoin's true 24 hour exchanges and volatility and the concept of "short time frame" trading becomes normal.

I would just like to remind all new traders that going to sleep with an open position is not meant to be a gut wrenching experience.

Nice find, I'm going to take a look at that while a wait for a hard copy to sit down to read with.  As much as a digital being as I am when it comes to books, I find nothing can replace sitting down and relaxing with a good book and a glass of wine.  It is kind of like vinyl records, I have hundreds of them because for some reason they just feel different and have a certain aura that just cannot be replicated.

Oh and I dig that quote Goomboo.  I certainly understand where you are coming from about the book being more philosophical and thought oriented.  Coming from a political world I understand just how important of a role conceptual concepts have in grasping the bigger picture. After all how are you going to be a successful in the world of politics if you don't have an understanding of the thoughts and actions of not only the politician but also the motives and physiological factors that affect the electorate? Not only that but sometimes just reading through and understanding someone else's thought process can give you a completely new perspective on things, giving you insight into opportunities that were previously invisible to you.

...Anyways little off topic but I think I am going to enjoy this book.

The copyright is expired and the author is deceased.  Project Gutenberg has it:

http://ebooks.gutenberg.us/WorldeBookLibrary.com/confessstock.htm

Thanks for the compliment naima53,

Haha yeah, reading / learning never stops!

Yeah, on the long side, I typically will just straight up purchase bitcoin if it is maxed out.  Having funds at Mt. Gox for longs and Bitcoinica for short is how I play it.

Hi Goomboo, Thanks for the interesting thread, very well written. I hope now more people will follow the trend and increase the "stability" of course. Will be smaller bubbles and unfulfilled hopes. But ... but ... Becomes a little harder to get money now for me personally, because of the fact that all this reading  

Still short here @ 6.28 but lines are closing in. I do see a problem with bitcoinica.
If there is a crossover and I want to go long it will be impossible  to do because of that *
Only option is to exchange your USD to BTC but bitcoinica rates aren't the best.

Just a little FYI:


The * is back on Bitcoinica.  They are maxed out long.  If this trade does go in our favor then we could see some volatility so be sure that you are managing your risk!

"If all I have is ten dollars and I risk it, I am much braver than when I risk a million if I have another million salted away."
-Jesse Livermore

Thank you very much for your kind words buck92,

It really is an amazing book.  It won't teach you "buy green sell red!", but it will teach you the thoughts and wisdom of arguably the best trader who as ever lived.

Here's a good list of quotes from the book (I suggest you read the book first and then keep these as notes):
http://the3500.wordpress.com/2007/02/01/a-stock-operator/

Best of luck in your trading!

+1

Thanks for such a helpful thread Goomboo, while I won't be following along exactly I am going to use your instructions to get better at trading. As a new trader who has been lurking for a few weeks, this is exactly the kind of thread I was looking for, intelligent conversation at its best.  No offense to anyone but I was sadden to find that while there is intelligent conversation to be had on these boards, you must first sift through the endless jungle of memes, ascii penises, and bull vs bear wars.

Also thanks for your book recommendations I will be checking out Reminiscences of a Stock Operator soon, I can't believe I have never heard of it before.