Any daytraders get their numbers Today?

[tiddlywinks]

I was not born with your trading gift. One day, through hard work, and perseverance, I will perhaps get there...

With no intent of playing guru, I offer you this advise...

Discipline is the number #1 characteristic needed.

Within that are line items...

The #1 line item is do not 2nd guess your (proven) systems/methods, which includes adhering to the associated risk management.

Over time, you will discover "inefficiencies". Those inefficiencies will be data based or personality based.
Have the discipline to learn the difference, and understand inefficiencies are not necessary. Losing is NOT inefficient, and for better or worse, losing IS necessary.

Good trading to you!

 

[Overnight]

You had 3.5 million at some point in time. That money was legally yours...

Strangely enough, that loss is not real according to you, it's a fictional loss, it never happened.

Right.

It's NOT real, until you realize it! It's a paper loss or gain until stamp it with a closing transaction!

That's why I hate it when the news says "Oooh, Bezos lost a billion or gained a billion this month because of the stock price movement."

Well, no he didn't, unless he moves to realize the loss or gain!

Look, I am sure you have a portfolio of some sort, and it has an unrealized gain/loss column on your statement. So...When you look at your monthly statement, do you say to yourself..."Damn, my portfolio has lost/gained X% this month"?

Well, that is a trap. It's bush-league psych-out stuff.

Look at my journal dude.

Look at when I entered those trades, and when I exited. When the trades were underwater, was I going "Oh nos, I've lost a grand!" No! Because when I CLOSED the trades, I made 700 bux or whatever.

I did not lose or gain until I closed the trades. Just like your portfolio. You do not lose or gain what you do not REALIZE.

So the billionaire above gained .3 percent unrealized, but closed flat and realized zero %. He didn't make or lose a dime.

 

[Tradex]

Point72 Asset Management!!!

Funny how some of these funds never post their ROI and max drawdown on their website.

 

[tiddlywinks]

You had 3.5 million at some point in time. That money was legally yours.

Heck, you can buy a nice villa in the South of France or Spain with that kind of money, and live like a king for a while.

Unfortunately you manage to lose all that money a few minutes later.

Strangely enough, that loss is not real according to you, it's a fictional loss, it never happened.

Right.

Dude... Until the gain is REALIZED you have nothing!
You can not buy villas or cars or even a candy bar with UN-REALIZED gains.

Giving back gains in real-time is not the same as locking in a price, executing a closing trade, and transferring the money to your bank.

 

[easymon1]

He didn't make or lose a dime.

He did spend the finite asset of a day.

 

[Tradex]

I did not lose or gain until I closed the trades.

So if you experience a 75% drawdown you are still OK, because hey, it's still an "unrealized" loss, right?

Most traders lose their entire life savings with that kind of extremely dangerous "logic".

 

[easymon1]

"How much is too much?"
Somebody start a thread?

 

[tiddlywinks]

So if you experience a 75% drawdown you are still OK, because hey, it's still an "unrealized" loss, right?

Most traders lose their entire life savings with that kind of extremely dangerous "logic".

That's correct... the drawdown does not become a REALIZED monetary loss until a closing trade is executed. THE AMOUNT may or may not be detrimental, but the amount has nothing to do with being realized or unrealized.

 

[Tradex]

Giving back gains in real-time is not the same as locking in a price, executing a closing trade, and transferring the money to your bank.

Are you shitting me?

So a $3.5 million profit is not real because... the trade is still open?!?
It's just monopoly money for you?

Enough of that nonsense, I am out.

 

[tiddlywinks]

Are you shitting me?

So a $3.5 million profit is not real because... the trade is still open?!?
It's just monopoly money for you?

Enough of that nonsense, I am out.

You can buy Boardwalk and Park Place only when the trade is closed (and settled).

I'll gladly pay you Tuesday if you give me a hamburger today. ~ J. Wellington Wimpy