I be grindin' away at pilin' up an insane fortune her

I think he's saying his form study isn't up to scratch, which is fair enough. Rule 4) Know where your strengths lie.

A suprisingly good first point from snapper.

For your average joe who has no inside info then he is 100% correct. He is also correct in that learning to take a loss quickly is the hardest part of trading.

I think he's saying that in the lon run you'll get burned. My point about the long runs of luck is valid. You can have an edge and bet profitably for years, then a long bad run comes purely due to random chance...the bank is gone and you are stacking shelves.

This point applies more strongly to people who are trying to make a living as opposed to those who are merely "investing" and hence can ride out a bad spell much better.

never ye trust a pirate ... aaarrrr

'For your average joe who has no inside info then he is 100% correct'


i am an average joe. i have no inside info. he is 100% not correct.

you sound above average to me then :)

average height, average weight ;)

Avast, tiss a fine sunrise me buckos. hearty thanks fer th' comments. Before we continue to Rule 2)i be needin' to answer a few confusions ye have.

Th' marketis not always right. So thar be "value" in some events.But, it be deadly accurate over th' long run, so tryin' to find that"value" day after day be extra difficult. I don't shout it be impossible, just not extra likely ye gunna succeed.

Rule 2). Stake sizin' be crucial. ye must keep ye trades th' same size, more or less. th' reason be simple, ye small losses have to be covered by a few big wins. Everythin' must be relatively th' same scale.

'tis be what be called "chasin'" - varyin' ye stake size. Again, demandin' that th' lady 'o th' market satify ye desire. If ye give a go' 'n force her, she be goin' to break ye heart me buckos.

So, ye trade to a fixed stake size. When ye reach ye first target (double ye buried treasure, fer example), then ye increase ye stake. In 'tis way, ye increase ye stake 'n ye buried treasure steadily. th' lady 'o th' market gunna gift it to ye all slowly as ye deserve it , 'n never more.

So, off ye be me buckos. jolly luck to ye all. Return fer Rule 3) to'morrow.

Good work, Cap'n....increase stake gradually as bounty grows.

aaarrrr, what kind of self-respecting pirate gets up at 07:24? :)

he'd done a day's plunderin' by 7.24, ta be sure--aaah

posts on here before going shelf stacking

Another good one Cap'n. I'll be aboard again tomorrow, for the morning tide.

Jolly day to ye all. this day I be goin' to gift ye Rule 3) before I run off to plunder th' market.

Rule 3) murder ye losers.

If ye open a trade 'n it goes worng, th' quicker ye murder it, th' better. Why? th' difference in th' long run between a winnin' trader 'n a loser trader be only how fast ye murder ye losers, because th' winnin' trades gunna win th' same amounts if left alone.

Like a bad woman...th' faster ye leave her, th' better. ye find a jolly one 'n keep her around as ye can.

That's all fer this day. bin got to get th' boat out now lads..jolly luck to ye all, remember what bin told ye 'n ye gunna be Ok. Be back to'morrow fer Rule 4).

Be ye all ready fer Rule 4)yet? I woe th' first 3 have helped ye buried treasure to begin to grow. Steadily 'n surely ye gunna begin to grow ye pile. After a year or a pair be gunna be massive. By steadily increasin' ye stake wit' ye buried treasure ye increase ye profits, but not ye risk. Let me be knowin' when ye be ready fer Rule 4). Let's take 'tis slow...lots 'o the hour...

ahg capt. snapper- tell us grog drocklers - what be the 4th rule?

Rule 4: Never get out of the boat...

what about seaman staines?

Now, my friends. Rule 4) Use compounding to build up your bank.

Compounding is a simple, but very effective way to increase your profits over time. Simply by your stake at a fixed amount of your bank will produce a compouding effect over time. What is it? Well, it is simply adding your profits to you bank and re-using those profits. Simple, really.

So, how percentage 'o th' buried treasure be used as stake? Well, that depends on how much risk ye heartly enjoy. I recommend ye use 2% as ye maximum loss 'o a trade. That gunna brin' me to th' subject 'o Rule 5)...which I gunna gift to'morrow.

Excellent stuff, Cap'n.

I'm still tryin to make sense of rule 1.
Why does always trading out of all your positions, good or bad, not constitute gambling ?.
Mathematically it will end up producing the same cumulative result in the long run, as never trading out of any and all positions.

AyeAye captain tis fine advice more captain we rabble want some more??

**LittleBotty!

It be a wee bit different than a straight gamble fer 2 reasons.

1. ye gunna pay less commission than a straight gamble 'n
2. ye be not gamblin' on th' outcome 'o an event, but th' price moves in th' event. th' difference be subtle, but crucial.

Mathematically it will end up producing the same cumulative result in the long run, as never trading out of any and all positions.

Not so, me bucko.

I think you will find you're wrong me bucko.
Closing out positions makes no difference in the long run unless you are getting value odds somehow as a result.
As far as offsetting to reduce commissions, what you gain on the swings you'll lose in the roundaments over a long term.

Cant agree with rule two.

When trading it should be the amount of liquidity which determines stake size. On some illiquid markets smaller amounts make more money than larger amounts.

Make me rich captain more i says more -please dont let me walk the plank captain!!

aye aye captain how much gold ye plundered today??

Agree with lippy, though perhaps the Captain's trading style means he doesn't encounter this problem very often?

**Littlebotty! Let me explain that a wee bit farther.

Imagine ye make $10 in 10 trades on 10 2.0 odds horses. ye pay $0.50 in commssion (@5%).

If ye had straight bet 5 winners 'n 5 losers,usin' $10 each bet, ye would have no profit, but still paid $2.50 on ye winners. th' trader be up $9.50, but th' gambler be below $2.50.

'tis a deadly serious difference. Over the hour it builds 'n builds.

**Lippy!

I be comin' to that in th' rules. ye be gettin' ahead 'o me on th' topic 'o liquidity...ye be correct 'bout liquidity, but ye cannot change ye stake on th' liquidity. A jolly trader only trades th' most liquid markets fer reasons I'll discuss later.

Sorry Snapper, but I must be a bit seasick today, cause I do not understand your example above.
My point is that if you let winning positions run to the final end, the extra you pay in commission is compensated by the extra profit you make, over the long term.
Short term analyses of these situations are very misleading.

The more serious point is that by making two trades or more on any event, albeit in different directions, still doesn't change the intrinsic requirement that you need somehow to create "good value " bets to be a long term winner.
All the points you have made above are sensible money management points but that's all they are.
However, keep making them, as they are valuable reminders, but they are not the keys to guaranteed success.
But you're not claiming that anyway are you ?

the extra you pay in commission is compensated by the extra profit you make, over the long term

'n thar be th' point, me bucko. thar be no such long term profit. That be Rule 1) th' efficiency 'o th' market.

But anyway, jolly questions. Now, onwards to Rule 5.

Rule 5)Win more than ye lose.

Sounds simply, but 'tis not. It means that ye losin' trades have to be covered by winners. fer example , if ye lose 3 trades fer every 1 ye win, ye gunna need a winner 3 times larger than ye losers to break even. A big mistake fer traders be to close out a position at th' first sign 'o profit. A jolly trader lets a winner run as long as possible. yarr, sometimes th' market reverses 'n ye spy wit' ye eye ye profits vanish, but in th' long run it pays to leave ye winnin' trade as long as ye can.

Ye have to be greedy 'n patient at th' same the hour. Not an easy thin' fer most people. Like a beautiful woman, th' market be goin' to check ye patience 'n spy wit' ye eye how much ye want her...Only then gunna she reward ye in full...

That's all fer this day. I woe ye be all pilin' up ye banks as th' days be off by. Rule 6) gunna be to'morrow...

all this is old hat and obvious, are you trying to eventually sell something?

Patience buzzer. Let's wait and see what the Cap'n has to tell us.

I see gold in them hills captain keep em comin i says keep em comin!!

I can't read this tripe.

What you trying to be quirky for you fool?

I can't read this tripe.

It seems you can spend time to post on it though.

a really good thread...much sense from the pirate...should make us all avast profit

Walk ze plank landlubbers, and beware of o mermaids in the sea, they may be the dreaded seahag! :^0

Hopefully the cap'n will give us info on his selection process, as without this nugget the rest is bilge!
Arrgh haarrgh!

Aye, w/o this they captain may be demoted to Stoker.

gambling advice delivered in the style of a pirate.

why has no one thought of this before?

I wonder how Feck would deliver it?

Feck never gives advice, except when he wants you to Feck off.

**all me buckos! thar be a few questions around 'bout "selection" methods. Let's be extra clear.

Rule 1) states Trade, not Gamble, because th' market be so efficient.

But it dont shout WHAT to trade. Why? Get a wee bit closer 'n I'll be tellin' ye all a secret...

.....It be not important what ye selections be (usually) as long as ye be tradin' a liquid market....that be a market wit' lots 'o doubloons. 'tis be important, fer example, in a knife throwin' match - ye be tradin' th' favourite, not th' outsider because thar be more liquidity on th' favourite.

So get it out 'o ye head that ye can figure out somethin' that th' market can't...ye selection method be not important - choose rum leaves if ye want, or astrology.

AAARRRGHH! Captain , on me ship, I've found the Less trading (and more intuitive selecting) I be doing during an in-play session, the smoother a sail that a eve.

And now, on th' Rule 6)...

Rule 6) Trade only liquid markets.

There be 2 reasons for this. First, if a market has more doubloons in it, th' general price trend be easier to see and be smoother.

Second, and more importantly, ye can exit and enter yer trade with ease and without having to pay more than necessary. This means that ye should be trading on th' favourites whenever possible - not because ye think they will win, or they be so-called "good value", but because that be whar th' liquidity be.

Aye Aye me old sea dog tis words of wisdom ye sprout. Captain Cook would be proud. You are king of the high seas i says king of the high seas. I beg you for more i says more!!

captain when next on dry land dont forget ta blow some ov ye plundered fortune on rum an wenches an stay scurvy free arrrrrrrrrrrrrrrrrggggggggg captain!!!

Ony way to make the buckets for most of the lousers on here would be to hoist the colours and rob a monet transport i am afraid.... ;)

is it just the 6 rules then snapper...

OHH ARRGG has captain fell over board??

Maybe he's just having a day off.

Ship**!

double shifts at the suprmarket on the run up to christmas, more parrot talk when work permits

OK me buckos. 'tis the hour fer Rule 7. I woe ye have all had a chance to give a go' out th' first 6 rules.

Rule 7) Be prepared to downsize in bad times.

What 'tis means be that if ye lose 50% 'o ye buried treasure, ye need to scale ye stakes below by 50% as well. ye gunna get inevitable losin' streaks. Indeed, ye gunna lose more often than ye win. What ye have to do be protect ye buried treasure at all costs, 'n 'tis means that from the hour to the hour ye need to scale below, just like ye need to scale up in jolly times.

Cap'n. I like t' cut o' your jib! I been followin t' rules and making a pretty penny.

Rule 3) murder ye losers.
If ye open a trade 'n it goes worng, th' quicker ye murder it, th' better.

Could you be more specific?
Just like leaving a woman after the first row, laying Federer after he has lost his first serve may not be the best strategy...

walofs

**Edison, A jolly inquiry that be.

What I mean be that ye have to have a stop loss, 'n hold tightly to it. A simple method be to define an acceptable loss fer a trade, fer example 2% 'o ye buried treasure, so that if th' trade costs ye 2%, ye exit.

Another method be by usin' a fixed number 'o ticks, shout 5 or 10 to exit. Another way be usin' a fixed odds limit to be reached to trigger ye exit.

ye don't need to get too technical 'bout it, just remember...murder th' losers fast 'n get out. On to th' next trade.

the book is out!
http://tinypic.com/view.php?pic=ff6av6&s=6

Now that be really hardyharhar!
I'll have to scribe a book one day!

Captain any more pearls of wisdom for your fellow seamen?? we need some treasure!!

It's my guess the captain won't be replying till racings over for today. He's probably busy trading away having washed up at the port of Wolverhampton

Avast me harties.

Wer be de venrable Cap'n Snapper?

Be his parrot be sick and be he sick as his parrot?

Be me needing to bulk up me treasure trove. :(

**me buckos! 'tis the hour fer Rule 7)

Rule 7) Be a contrarian or trend follower accordin' to ye temperment. ye have to understand that contrarians (back high, lay low)win more trades, but have lower profit. Trend followers (back low, lay high) win less often, but win more doubloons in th' long run. If ye be not a patient person, it be best to be a contrarian trader.
.

If ye find yourself gettin' angry extra often, or frustrated, it be a signal from th' lady 'o th' market that ye change ye style. Persoanlly, I prefer trend followin' 'n th' satisfaction 'o ridin' a big trend, but thar be times when I would like to be a contrarian. ye can change back 'n forth, but remember that each has 'tis own jolly 'n bad sides.

Neither be better than th' other, but one can be better fer ye at that the hour

Ha Haarrggh.Looks like rule 7 be identifying me trading style.Must be contrarian to be backing low and a laying high as me doubloons seems to be sinking to bottom o' ocean.

I think he might have meant back low lay lower, maybe? Any more tips?

I admit I'm puzzled by rule 7.

Think he might mean "laying low and backing high" I've a feeling he's been at the rum and grog barrels again and doing a little laying low himself

Maybe he be laying wenches or sailors??

" ---or sailors " ?
Oh dearie me.

The wildest and most unwarranted speculation, imo.

Come on then Cap'n Its more flesh on the bones of Rule 7 thats needed. Us landlubbers be a little confused

I was referring to this "sailors" business.

**me buckos. thar seems to be some questions regardin' Rule 7. 'n th' difference between contrarians 'n trend traders. If ye oppose th' trend, ye be a contrarian - ye back only when th' price be high 'n ye lay when it be lower, 'n vice-versa. If ye be a trend follower ye be grog-filled happy to back low prices ( 'n lay it again lower later) 'n ye be grog-filled happy to lay high prices ( 'n back them even higher later).

In my early days as a pirate I turned $40 into $4000 within 3 months being a trend follower. Then I did the same in 3 months being a contrarian.So, it seems that both styles are valid and it only matters which you prefer.

Is the captain still grindin away ??? or has he jumped overboard??

I fear he sailed too near those Somali pirates whose trading strategy consists of stealin' yer ship and demandin' ransom

Perhaps he just finished outlining the rules.

he'll be back when he gets paid. Swabbing the decks is not a great earner

**me buckos

.Lots 'o a ruckas this day as me buried treasure has grown by 15%. In fact, i reckon that ye can reasonably hit 10% per day. If ye be compoundin', 'tis gunna double ye buried treasure in 7 days. Always think in terms 'o percentage profit 'n concentrate on doublin' ye buried treasure.

how u getting on snapper,update plz

ship sunk ?

surely not