5 Changes I Made That Had A HUGE Impact On My P&L.

lcranston · Oct 24, 2016

humbletrader2016 said:
There is an analogy between trading and climbing mountains. Imagine that you get lost in a jungle and you don't have a clue where you are. The best way is to find higher ground so when you look down, you clearly know which direction you should take to go back. Similar to trading where you get lost easily while focusing on smaller time frames, bigger time frames will help you to figure out market direction, while you use smaller time frames to help you timing entry points and trading along with market direction so that you won't get washed out. Unlike some full-time traders who try to trade both directions within the same day, I stick with one direction which follows market direction and so far, I rarely accumulate any loss trade.

One of the smarter things I've seen posted on this site.

algofy · Oct 24, 2016

humbletrader2016 said:
I rarely accumulate any loss trade.

Are you stating you rarely have losing days or rarely have losing trades?

FreakofNature · Oct 24, 2016

Allow big winners, dont allow big losers, and everything in between, small losses/winners, break even, treat the same.

Rest are clichés.

Gotcha · Oct 24, 2016

humbletrader2016 said:
Unlike some full-time traders who try to trade both directions within the same day, I stick with one direction which follows market direction and so far, I rarely accumulate any loss trade.

No offense, but comments like this on ET are always highly suspect. If you rarely have any losses, you're better than most highly paid money managers. So perhaps you'd like to quantify this is bit. What is rarely for you? Is it over a 90% win rate? What are you trading, and what do you consider a win? You don't sound like you're scalping, more so swing trading, which would make it even easier for you to be a multi-billionaire by now.

Seriously, most professional traders will not be able to say that they rarely have a loss, unless they have a highly skewed R:R ratio, or suffer a huge drawdown when they do have the losing trade.

What you say above would also mean that you almost always get the direction of the market right. Once again, this proposition is highly suspect, so perhaps you'd like to share some details/stats because based on what you just said, you should be better than Buffet.

Thiefty% · Oct 24, 2016

Gotcha said:
No offense, but comments like this on ET are always highly suspect. If you rarely have any losses, you're better than most highly paid money managers. So perhaps you'd like to quantify this is bit. What is rarely for you? Is it over a 90% win rate? What are you trading, and what do you consider a win? You don't sound like you're scalping, more so swing trading, which would make it even easier for you to be a multi-billionaire by now.

Seriously, most professional traders will not be able to say that they rarely have a loss, unless they have a highly skewed R:R ratio, or suffer a huge drawdown when they do have the losing trade.

What you say above would also mean that you almost always get the direction of the market right. Once again, this proposition is highly suspect, so perhaps you'd like to share some details/stats because based on what you just said, you should be better than Buffet.

If you can't beat buffet then you should consider buying some BRKs. Don't waste your time actively managing a portfolio. Open an IB account and manage it yourself but passively. See what I mean ? ET is for active trader ... Low Margin Dumbass. If you can't better him with such a risk profile then ... Must be a problem.

Yeah ... Profits are nothing more than your expectency. Risk is nothing more than the StdDev... It's all about the curve over time. Be statistically passive. Don't try to fix this particular trade ... But to improve your overall Probability Density Function (Payoff over R). A Payoff that looks like a log-normal is a genuine one. You need a simple Edge (Not sayin' easy) & being Secure... Nothing more ... Nothing less.

Now everyone has his own evils...

One who is keen on attaining enlightenment, should first know clearly the impediments that block the path to enlightenment. #Buddha

humbletrader2016 · Oct 24, 2016

1) By admiring Buffet's ROE, it sounds as if your annual return is very low if you think you can't beat his ROE, especially if you are a full-time trader;

2) Selling options premium for livings is what I've been doing full-time for years. So, comparing my returns with his is not appropriate here and yet, you shouldn't sell options premium if annual return for your portfolio is <100% because what you are doing is just helping brokers to get rich, not for yourself. By the way, no need to advise me that I'll blow out my account because I went bankruptcy once many years ago. That said, I've survived both 2000 and 2007 recessions, which I believe most of you didn't;

3) I shouldn't keep saying that I rarely accumulate loss nowadays because it sounds like bragging myself. So, it's normal for you to feel suspicious. However, I want to make it clear that I'm on here to share my thoughts and nothing else. If you or those who think that I'm on here for any financial and other purposes, then you are wrong about me because I'm not a business person where I enjoy trading for myself only and living in a simple life with my gf;

4) Believe me or not is up to you and it's none of my business trying to convince anyone for anything. That said, there has been times that I don't like to come up here to post anything because I find there are many negative people on here. If I don't feel welcome on here, then I should simply disappear since there are many better things to do during my sparing time.

Gotcha said:
No offense, but comments like this on ET are always highly suspect. If you rarely have any losses, you're better than most highly paid money managers. So perhaps you'd like to quantify this is bit. What is rarely for you? Is it over a 90% win rate? What are you trading, and what do you consider a win? You don't sound like you're scalping, more so swing trading, which would make it even easier for you to be a multi-billionaire by now.

Seriously, most professional traders will not be able to say that they rarely have a loss, unless they have a highly skewed R:R ratio, or suffer a huge drawdown when they do have the losing trade.

What you say above would also mean that you almost always get the direction of the market right. Once again, this proposition is highly suspect, so perhaps you'd like to share some details/stats because based on what you just said, you should be better than Buffet.

humbletrader2016 · Oct 24, 2016

Lastly, I strongly believe most of you couldn't afford to buy a single house in an upper class neighborhood by using money that you make from markets. That's what I've been proud of myself and also, my gf doesn't have to work because I've been financially supporting her for years.

lawrence-lugar · Oct 24, 2016

humbletrader2016 said:
Lastly, I strongly believe most of you couldn't afford to buy a single house in an upper class neighborhood by using money that you make from markets
That's what I've been proud of myself

...

...So much for being "humble", humbletrader2016
That's a very tiny, elite club...for a trader to say, or claim, they have made $750,000 from trading.

In my humble, simple opinion...if a trader is ready to make such a bold claim or statement...they should back it up with proof or statements available for viewing. (The validity of those statements, is another story though.) We are assumed to be running on the honor system.

Gotcha · Oct 24, 2016

humbletrader2016 said:
2) Selling options premium for livings is what I've been doing full-time for years.

I don't know enough, or anything really, about selling options premium, so I just cannot comment well enough. But I have been following the thread in the journal section by Sweet Bobby and what I have learned is that doing something like this is very much underestimating the risk that will hit one day. Now I know you say you survived 2000 and 2007 which is reassuring, but once again, I don't know enough about this type of investing, nor do I know enough about your strategy.

But I really do have to wonder how it is that you're producing more than 100% return without taking one huge risk. It just seems to me that this edge wouldn't be that available to you unless you are underestimating something.

I do agree with you that posting things on ET gets difficult at times, but its precisely because anyone just says whatever they want, and they don't back anything up, but rather, fire off with some sort of rant that has nothing to do with the issue. When making extraordinary claims, I think its important to have to go to extra lengths to prove them.

I realize that selling premium probably is an easier way to get a high win rate, rather than trading some instrument out right, but the way you make it sound like, you're getting direction right every single time. With options and selling premium, it seems to me that its a case of you selling insurance that there won't be an earthquake tomorrow, and sure, you can go for years being wrong every single day, but this isn't exactly the same thing as getting market direction right every day. Just based on this fact alone, I don't think its fair to say you're always getting market direction right. All you're doing is making a bet that today, there isn't going to be a monster move in the stock.... is this correct? And if this is correct, then this is a much different thing. I would be willing to bet that tomorrow, the ES will move more than 5 points from the high to the low. Will this make me correct about market direction?

humbletrader2016 · Oct 25, 2016

I chose the word "humble" because I've seen many professional traders fail miserably due to their arrogant attitudes. Yet, continuing learning is very important in this trading business in order to adapt to market conditions.

lawrence-lugar said:
......So much for being "humble", humbletrader2016
That's a very tiny, elite club...for a trader to say, or claim, they have made $750,000 from trading.

In my humble, simple opinion...if a trader is ready to make such a bold claim or statement...they should back it up with proof or statements available for viewing. (The validity of those statements, is another story though.) We are assumed to be running on the honor system.