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As you know, we do not trade one stock alone. So sometimes while browsing you may chance upon a stock with a buy signal but price has already retraced halfway towards your potential stop loss (it could be 1/3 or 3/4 or anything arbitrary). Let's say your strategy that has an edge is a 1 to 1...

The strategy with best returns are pure trend followng...but that is the very long term. In short to mid term you can be losing little/winning little or breakeven in between. Its best to combine with shorter term higher winrate trades to keep your sanity at times.

AI have tendency to overfit and go broke. AI is only good for board games like chess where you can brute force search. Stock markets are way too complex and too large a market to be fearful of AI and length of time in the market can be years compared to few mins a move in a board game so there...

Think of it like this. Let's say we have a stock A buy signal at $50 and it rises a week later to $60 and generates a sell signal. You sell. Price then drops back to $50 but no buy signal is generated. Would you then place a buy because it was in previous week buy zone? Almost everyone would...

Well because when back testing a single stock we do not go back in time and buy again after a sell signal. If the market trend changes causes stock A sell signal, stock B might just be slower to react. Thus, when buying into it because of a past signal we may incur more loss and a higher...

Does it make sense or no? Like if you have a sell signal to sell stock A today, after selling and while looking at the charts there is stock B that has a buy signal yesterday or days ago and the price hasn't exceeded the price when the signal is generated. Would you buy into it? Or do you wait...

Trend following is always alive. Just that it has long periods of mediocrity and drawdowns. Not a method for everyone.

How A Pool Contractor Turned $10,775 Into $42 Million in 2 Years | by M.S. Lane | DataDrivenInvestor

He turned 10k to 18mil in a year and a half (this was audited). Then allegedly he turned that 18mil to 42million in another 6 months (Not audited).

This is 100% true. Some people have better traits for trading and it cannot be taught (Or it is hard for someone not good at it to be very good at it). I won't say its impossible but it takes practice and its hard to change, like for someone introvert to become extrovert or someone bad tempered...

I remembered that he took $10k and turned it into $42m in 2 years. Not sure where you get that 20 years from. As of right now nobody knows how rich or (poor) he is...

I think some of the reasons is that they are some nuances in trading (which add up). Its hard to put into words but a season trader would be able to exploit it while others who just copy trade do not.

Dan Zanger may be a one hit wonder though, after the dotcom boom where he made $42m you never really hear of his further exploits. Did he lose it all? Or is a billionaire now? No one knows... That being said. I don't think they are risking 1% of their account (Maybe per trade but they have...

Think of this, for simplicity sake we make risk/reward 1 to 1 and we risk 10% a trade. If a trade has a 90% winrate but only has say 10 signals a year. After a year we would have 180% times our initial bankroll. How about all equal except with a 70% winrate and 30 signals a year? We would then...

Everyone wants a better life for themselves. There's nothing wrong about dreaming to make big money. This guy at least doesn't come across as snobbish. His friendly, cheerful and has a beautiful wife and baby. Yes, he gets excited talking about his cars and stuff but everyone would be on...

Misleading title though. He said that his largest winning day was $3.8mil a day and largest loss was a $1mil. He makes roughly $1mil a month according to him. Started trading at 19, he did not do so well his first few years but eventually perseverance paid off and managed to be a millionaire at...

Even with AI and "perfect play" there is still room for human traders. Let's say the AI buys stock XYZ at $2 and sells at $10. A human trader can identify the signals buy a bit later at $3 and sell later at $9. Therefore, still making a sizable profit. In games like chess, just following move...

There are several methods that are near holy grail. It's like in sports where you can have different playing styles but still be good in it.

To me BNF the Japanese trader is the best retail trader alive. He turned $16k to $200m in 8 years. $200m to $2bn in the next 12 years.

One hit wonder.