deucy28

Trading / Charts of Note (stock pair trading)

....became de facto my thread, when the starter bailed out early on, and in less than 1 1/2 years after posting my first chart, it entered ET's Hall of Fame.

PRO's: 100% of nominated trades were successful. I expect 70% minimum of trades being gains for a beginner. Style: Simple to understand; simple to trade and manage: no technicals nor fundamentals needed. Does not require intense, daily tracking. Safety: Market-direction-indifferent allows for good mental health & blood pressure.
CON's: Overall success is likely to be modest in gain compared to popular styles with more risk; a normal loss wipes out two gains. Research to find high quality trades can be time consuming but there are short cuts available and programs are within reach. Capital intensive as each trade includes a pair of stocks. Exiting a trade is difficult to determine and is left to the trader to take quicker, modest gains or longer holds to milk the remaining, obvious potential; the former is fine when numerous trade opportunities exist and the latter is good for investments.

First post was Aug 1, 2012 with perfect example, but I recommend Aug 23 to begin viewing because charts became more sophisticated, annotated, and better to view allowing excellent understanding of this simple trade style. There was latitude as when to get into a trade, but I left it to traders' discretion when to exit. (See above paragraph.)

The consistent success of nominated trades drew consistently heavy views and down loads.

This non-conventional manner of selecting trades and the simplicity of that manner by which selection is done was obviously popular.

The follow-on charts from the inception of a trade proved the effective quality of EVERY trade.

Charts are self descriptive with remarks, but larger narratives on many trades are in another thread along with general comments of this simple trading at the following:

Trading for a Living / Journals / Pair Trading Strategy Journal ......

....these narratives can be found there explaining the simplicity of and potential of the trade AND many pearls of wisdom for this simple style of pair trading found by:

http://www.elitetrader.com/et/index.php?search/&type=post
and typing in my user name Deucy28
and selecting FORUMS window: Trading for a Living / Journals
Start with page 6 of the six pages of my posts as it is my earliest post at this forum and is time paired with my posts at Charts of Note.