anyone of you currently is or use to be a proprietary trader for a broker firm?

How you guys select stocks compare with people outside as every month, you are paid with a % how much money you earn from the market for the broker firm

local brokers earns commission hence they encourage client to trade more, you make money or not, not their problem.

fund manager for institutions get a percentage from profit generated.

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This post has been edited by lihongmint: Jun 30 2017, 02:24 PM

looks like you don't know what is proprietary trader is.

Heard of proprietary day trader in CIMB investment or Malacca securities?

Trade for company and not for client nor manage a fund

i am not a fan of labels, but if the title proprietary trader is what makes a retail trader feels some entitlement or status in exchange of cheaper brokerage fee, by all means, in the end you are retail trader if you trade your own money.

I interested of their trading strategy not brokerage fee...

look like you don't understand the word proprietary.

if you don't know, just leave it....no need to give answer.
Those who interested to share will share...

PDT issit?
depend which broking firm offer better for PDT thn join
tax need declare transparent
depend what kind offer for equities and futures

Why this thread is so quiet lately? No gem found?

@boon3 where are you?

Giv sum tips to revive this thread

I dun have



How are you?

Recently tech plays huh with the likes of jftech tecfast aemulus etc

Me? Cracking my head between these 2 statements :
"Oh the price of a stock that i pick having massive discount, it is great value ! Be greedy when others are fearful! Average down!!"

And

"Oh the price of a stock that i pick went up, i have made a correct decision back then ! Consistent winner raises their bet as their position strengthen ! Average up"

What say u?

Early, early morning got brain twister



For me, if that was me, I bought the stock (which I thought had value) but yet the stock went down, the first and best thing to do is ALWAYS try to look at it with an unbiased mindset. Forget the value thing. Forget the discount. First thing is that the bloody stock went down. Which means is that I have to ask myself if I had bloody well farked up on my assumption of value there. DID I MAKE THE BLOODY MISTAKE IN THE FIRST PLACE? That's what I would ask instead of using quotes like 'BE GREEDY WHEN OTHERS ARE FEARFUL. When we do not analyse ourselves first, that would utterly render that quote useless.

Take that Parkson example again. Take Feb 2012. Profits 100 million plus. NTA 2.39. Parkson price then was 4.40++

So Parkson was tumbling down....

Assuming one spotted it but decided that they would take the good old value+patience approach.

They wait ONE year later before pulling the mighty trigger. May 2013. Profits 70 million plus. Still bloody good ma. NTA increased to 2.59. Price was 3.0+. And they note, got dividend and got share buyback. What can go wrong?

Well profits continued to fall. From 70+ million, profits plunged to 30+ million.'

Now assume this fella did not average down YET.

He/She played the patient game... but come AUg 2015.... profits turned into MASSIVE losses. ...... and Parksom traded only around 1.10++

Hey its NTA still 2.43 wo...

Then came the aggressive AVERAGE DOWN..... how can go wrong? ICAP fella still invested in the stock. Big massive discount now....

Ahhh..... this is where it can get really interesting.

Say initial investment was 3.00. Bought 10,000 shares.

Now price 1.10. Buy how many? Buy 30,000 shares?

Then price dropped 90 sen? Buy 10,000 shares?

Then price dropped 80 sen? Buy 50,000 shares?

Then price dropped 70 sen. Buy how much?

Ooops.... price dropped a lot this year too. Now 55+ sen. Buy how how much?



Now add them up.

What's the average price?



You know... if I throw away all my market knowledge and just analyse these actions.... isn't one BUYING MORE, MORE, MORE of one's initial mistake?

What about averaging up situations..

say like average up but then stock falls so you end up near break even..

But then the stock market is a beast, an unpredictable beast.

So badly and deadly the Parkson example is, there are always exceptions. As we all KNOW, any stocks can be fried up. Good stocks or bad stocks. Doesn't matter. It's just a stock and it all can be fried.

Naturally this complicates and confuses the hell out most beginners.

They will say... ah... Parkson just one bad example.

They would then use maybe Vivocon and throw that share at my face. They will say... see that share use to be 25 sen. So I bought at hald price. 12.5 sen. I was confident. When it drop to 11.5 sen, I sell all my underwear and buy, and buy and buy. When it hit 14.5 sen, I sell all. Now I buy many new underwear.

Yup.

It does complicates things. So damn confusing.

Which one to use?

One thing I do know is..... WHEN you average down and WHEN the stock keeps falling, one is gonna need A LOT, LOT MORE capital just in order to help recover the losses. So do ask yourself, got enough money ah?

There are many published strategies on how to average up. Basically (unlike averaging down) you are NOT ADVISED to 'double up' when you average up. Most suggest that when we add to our holdings, we should not increase our new average price by more than 10 percent. Google it.

Also do note, WHEN to average up is just as important as HOW MUCH to average up.

Boon3 tunjuk ajar

With position sizing & expectancy in placed, we can somehow limit the risk of our trade.

Control what we could control.

YES I do agre . Position sizing & expectancy will help us limit the risk but we still need to do all the little things right.

Why do ppl average down?

Do they average down because they really see that it's an opportunity to make more money?

Or they average down because they want to rectify their losing position?