Another day trader bites the dust

[SimpleMeLike]

you are a fuckin clown. ITs not PART of the edge either.

Defining your risk doesnt give a you probabilistic edge on if the market will move one way or another (Which is what/how and edge is actually defined in trading imbecile). No matter how much you THINK you are right, defining the risk isnt a fucking edge nor part of the edge.

Please go choke yourself until you understand what has been spoken here you fuckin pleb. because you obviously have no idea wtf is going on.

LMFAO hahaha hahaha lol hahaha haha

Maybe some traders need to understand the trading expectancy formula. Positive equals edge. Negative equals no edge.

 

[SimpleMeLike]

My friend who has been trading for profitably for 6 years moved from position trading to day trading. He got sucked into day trading

This is a guy I spent hundreds of hours a year teaching him the ropes about position trading. He made very good money trading 8 - 10 times a year but he wanted more - he wanted the $10k+ a day big trades. Thanks to falling for the flashy trading literature and false promises doing the rounds everywhere

And so he took the plunge Jan 2019 with his account size of $450k. Less than 18 months everything has gone. Vanished not a dime!

I said it guys no one on this planet and consistently make money day trading. You might have a few lucky years but the market is going to take it all back.

As an ex-floor trader, if you want to be in the day-to-day action, you might as well take the lesser evil and start scalping provided you have the right exchange fees, broker agreements etc. Scalpers don't have to worry about overtrading (The number 1 killer for day traders) and just trade the spread. I only know of 2 former colleagues who were still scalping the bund via Kyte Brokers. But even they have packed it in and gone into property development. They are much happier after saying adios to 30 years of scalping

Sorry to hear about your friend.

But there is no way on earth I have $450k in my trading account and I lose it all to $0.00

Setting a money management rule of 50% or even 30% drawdown of initial capital could have saved your friend a lot of losses. After 30% drawdown, the trader must stop trading that trading method.

It's good to make money, but we have to know when to stop trading too.

 

[smallfil]

Sorry to hear about your friend.

But there is no way on earth I have $450k in my trading account and I lose it all to $0.00

Setting a money management rule of 50% or even 30% drawdown of initial capital could have saved your friend a lot of losses. After 30% drawdown, the trader must stop trading that trading method.

It's good to make money, but we have to know when to stop trading too.

My personal money management rules is stick to the 2% risk per trade. No more than 5 trades on at one time. This reduces the total risk to 10% on a worst case scenario. Most times, your losses will not reach the 2% or total loss. A drawdown of 10% you can live thru and overcome. The larger the drawdown you have say 50% or more, the harder it is to claw your way back up to just breakeven. Do not be deceived by the 2% as not being enough to generate substantial returns. Also, remember to respect your stop losses especially, if you are using mental stop losses.

 

[deaddog]

1% or 3% mean very little if your stops are too tight.

 

[SimpleMeLike]

1% or 3% mean very little if your stops are too tight.

Maybe the stop should be tight per the strategy.

My point is, it does not matter how tight/wide the stops are, after XX% of initial capital loss, the trading the method(s) must be stopped.

 

[SimpleMeLike]

My personal money management rules is stick to the 2% risk per trade. No more than 5 trades on at one time. This reduces the total risk to 10% on a worst case scenario. Most times, your losses will not reach the 2% or total loss. A drawdown of 10% you can live thru and overcome. The larger the drawdown you have say 50% or more, the harder it is to claw your way back up to just breakeven. Do not be deceived by the 2% as not being enough to generate substantial returns. Also, remember to respect your stop losses especially, if you are using mental stop losses.

Thanks smallfil,

I am starting to use 2-3% risk of initial capital as well.

What are your money rules for when to stop trading for the day after losses? I would like to use percent as well.

 

[speedo]

Assuming the story is true and as this is ET, that's a stretch. The guy was not a day trader, the guy was a non-trader attempting to day trade. Any dope can make money on long positions in a bull market.

 

[deaddog]

Any dope can make money on long positions in a bull market.

Exactly... That's why if you can't beat a buy and hold strategy with an index ETF you probably shouldn't be trading

 

[helpme_please]

Exactly... That's why if you can't beat a buy and hold strategy with an index ETF you probably shouldn't be trading

Makes sense but not practised even among top professionals. Most hedge fund managers, many of them very well-paid, lose to a buy and hold strategy with S&P500 ETF during the past decade.

 

[deaddog]

Makes sense but not practised even among top professionals. Most hedge fund managers, many of them very well-paid, lose to a buy and hold strategy with S&P500 ETF during the past decade.

It's an industry.

Convince the public that they are too dumb to understand the market and charge a couple percent to underperform. Nice money if you can get it.

Don't want too much competition. Regulate the industry so that only who you choose can play.