Question by a DreamTai member:
What was your return for the year using dreamtai? Your trading results with the software and stock picks you use can give us something to go by. Thanks for your reply
Hi!!
I am not allowed to state my returns or claim that DreamTai produces X and Y returns.
I am NOT an Investment Advisor as per SEC rules.
I am a software developer with a regular day job as my main source of income.
I do not want to make extravagant claims that DreamTai will make you millions and help you retire.
If you notice, I have put disclaimer everywhere that DreamTai is to be used for educational or entertainment purposes only..
The common investor focuses on how much money he can make in the stock market.
For trading experts, the focus is on managing the trade and how much money is at risk at any time.
DreamTai serves as a framework which can help you to decide for yourself whether to buy or sell, rather than trading on your gut feeling or trading just because some analyst recommended a stock.
Using DreamTai, there is a structure in your trading. You know when to enter and when to get out. Your maximum losses are fixed.
You know by Power Ranking, which stocks in your portfolio are bullish and which are weak.
For any trade, the exit is more important than the entry.
You can look at the past picks in the blog, you will see that some have fared well and some have fared horibbly.
But, if you had followed your sell stops, then you would be out of those stocks with minimal losses.
DreamTai does not work properly in flat markets ( Too many whipsaw trades. A market is flat when the dotted moving average is flat At that time, just stay away from the market)
Here is what I suggest:
Read about DreamTai's inner logic at the following link:
http://www.dreamtai.com/trial/ebayvdo.html
Read about how REAL MARKET GURUS trade in the following book:
"Market Wizards" by Jack Schwager. Borrow it from a library or buy it.
Focus more on their trading philosophy rather than their trading systems.
Another good book is "Trading for a Living" by Dr. Alexander Elder
Look at all your past trades. Do not worry about if you have made profit or loss on each. Look at whether you have entered at the correct time (buying when the market is trending up) and whether you have exited at the correct time and whether the loss was less than 2 percent of your overall equity.
Place more emphasis on how you have MANAGED your trades. The profits will take care of themselves.
I know, this whole thing sounds counter intuitive.
Suppose you are a manager and have an employee who fails in his duties 50 percent of time and the remaining fifty percent of time, performs his duties really great.
You would fire that employee!!
But in stock market, you can have string of several losses followed by 3 or 4 HUGE ten-baggers stocks making lots of profits.
Under these conditions, you just have to maintain your calm, handle each trade properly because you never know when you have a huge winner. That is how the real pros handle it.
