2012: The Battle for Survival

[Businessman]

I been trading since the late 90's, i have a larger account than Neke has and i too am in a multi year drawdown. Coincidentally my equity peaked in september 2009.

However my equity bottomed in january 2011, it has not been setting new lows like Nekes' account has.. the reason is simple i cut back my size drastically after a very poor 2010. I developed a new method and began trading it with the same reduced size level.

A good DAY trader should not have multiple years of back to back losses.

If that is the case then it is all the proof needed that something is seriously wrong with the method being used. My method was weak and I only made outstanding profits in 2008 and 2009 because market conditions were good. I was printing money. The lack of robustness in my method was hidden.

Neke needs to stop bleeding.. cut back his size. Then he needs to develop a more robust method of trading. If he cant find anything really good then he needs to wait until we get the easy markets like we had back in the noughties and then he can step back on the gas.

Currently he is just churning and burning his own account.

 

[HurricaneUS]

Quote from Businessman:

I been trading since the late 90's, i have a larger account than Neke has and i too am in a multi year drawdown. Coincidentally my equity peaked in september 2009.

However my equity bottomed in january 2011, it has not been setting new lows like Nekes' account has.. the reason is simple i cut back my size drastically after a very poor 2010. I developed a new method and began trading it with the same reduced size level.

A good DAY trader should not have multiple years of back to back losses.

If that is the case then it is all the proof needed that something is seriously wrong with the method being used. My method was weak and I only made outstanding profits in 2008 and 2009 because market conditions were good. I was printing money. The lack of robustness in my method was hidden.

Neke needs to stop bleeding.. cut back his size. Then he needs to develop a more robust method of trading. If he cant find anything really good then he needs to wait until we get the easy markets like we had back in the noughties and then he can step back on the gas.

Currently he is just churning and burning his own account.

+1


..this is not rocket science...there has been some very good advice here lately......

 

[tenthousandmen]

speaking of easy markets,

someone pushing random buy/sell buttons could of made money since last december

(exaggeration)

Thanks for the great posts. I hope neke won't be the only onw to benefit (scratch that - I'm benefiting! )

 

[leonarda]

Some tips for you neke
1. Number 1 rule is CAPITAL PRESERVATION
2. When your account is trending against you badly, ie.long drawdown, reduce position size until your equity starts to trend in the right direction, then increase size...

Simple as that!
With your current performance i would reduce to trading say a 10k account, put the other 150k or so in a savings account...

 

[tenthousandmen]

Quote from leonarda:


Simple as that!
With your current performance i would reduce to trading say a 10k account, put the other 150k or so in a savings account...

Best post


neke please read

and btw, when you blow out that 10k, you will know what would of happened weeks later with your whole sum. It will be a great way to cut back and focus. do it!

 

[Wide Tailz]

Quote from tenthousandmen:

speaking of easy markets,

someone pushing random buy/sell buttons could of made money since last december

(exaggeration)

Thanks for the great posts. I hope neke won't be the only onw to benefit (scratch that - I'm benefiting! )

The glorious Third Wave....... a sight to behold. I call them tails

 

[leonarda]

Quote from tenthousandmen:

Best post


neke please read

and btw, when you blow out that 10k, you will know what would of happened weeks later with your whole sum. It will be a great way to cut back and focus. do it!

also, see BusinessMan's post above who recovered by this means.
A typical "losing trader" tends to think "...ah but if I cut back my size and I start winning again i'll not get back to profit...". Fact is they go broke instead!! Get back to a winning trend, then increase size.
So tip 3. DON't be GREEDY!

 

[flipside21]

Quote from leonarda:

also, see BusinessMan's post above who recovered by this means.
A typical "losing trader" tends to think "...ah but if I cut back my size and I start winning again i'll not get back to profit...". Fact is they go broke instead!! Get back to a winning trend, then increase size.
So tip 3. DON't be GREEDY!

If the odds are against you, such as when gambling in Vegas, the best strategy is to put everything on one gamble.

If you have a consistent advantage, then you want to always bet a size that doesn't cause ruin.

 

[PHOENIX TRADING]

Quote from flipside21:

If the odds are against you, such as when gambling in Vegas, the best strategy is to put everything on one gamble.

That's the most asinine thing I've read on ET this year.

If the odds are against you don't play JFC!:buy into an index fund and be done.

 

[flipside21]

Quote from PHOENIX TRADING:

That's the most asinine thing I've read on ET this year.

If the odds are against you don't play JFC!:buy into an index fund and be done.

wtf do you know. you're taking your account to zero in n months.
http://www.elitetrader.com/vb/showthread.php?threadid=238148