Consistently Profitable Day Traders
- Thread starter Norm
- Start date
so these 122% a year of what type base is that? i took a 22k account to 2.1 million from 2000-2002. the swings in the market were mind boggling and i had a zero commission gig going on. but obviously the reurns collpase huge with 2 million vs 22k. i can't even come close to using all my money in a semi conservative fashion or a wish not too may be a better term.
LOL
What would you like me to prove and what have you proved to anyone.. ?
I have made several calls before the trade live here in ET do a search ... I have nothing to prove to you or anyone else, when you want to send me your statements first, accounts numbers cut out I will send you mine.
Till then go back to the peanut gallery...
Mike
I write verticals 75% of the time and condors 20% mostly but two or three times per quarter I will buy OEX puts or calls for a straight out play.
I agree with you on a blackbox but so far I have not found anything that I can trust for consistency and my programming skills are zilch.
I think with returns that you suggest, you have no need to consider shorter term trading strategies. However, to answer the question more generically, "Where's the advantage?" => For me, I find that shorter term trading strategies typically offer several advantages versus longer term 'swing trading,' which I might define as average trade durations of 1-4 weeks.
First, successful daytrading offers the ability to better control risk. Typically, longer trade durations require the trader to allow a greater cushion for their stop loss orders. With daytrading, you can have very tight stop loss protection that might typically be impossible in a trade setup for a month long trade.
Also, with daytrading, you have the potential to make higher returns by constantly cashing in your trades and reallocating your capital to new, better opportunities. That said, I am sure there are many swing traders that might have higher returns than I do. The same can be said for daytraders, as well. My goal is not to have the highest return versus others, but just to have a very lucrative, consistent and low risk return for myself.
You mention averaging 8-11% return per month with your swing and option trading for the past 17 years, if I understand correctly. That is very impressive. Starting with a $1000 account, and averaging 8% per month for 17 years, you would now have over $6.5 billion ($1.7 trillion, if compouned at 11%). Very nice! I guess after taxes and living expenses, it would probably be less than that, though. What are the typical percentage drawdowns that you have seen during those 17 years of averaging 8-11% per month?
-Eric
I actually started with 50k but as attractive as that may sound initially I had to pay ALL my living expenses from the get go, so the real effects of compounding where not able to kickin as per your numbers above. I have never had a lose in any month greater then 14% and I run a 70% success rate overall monthly.
Keep in mind that takes into account 4-5 % returns regularly per month and on average 3-4 months out of the year 18-23% returns and very occasionally higher.
I agree with you on the risk control factors with daytrading but keep in mind my options trades are fairly risk free and they can always be adjusted in most cases if I want to work off a loss over time rather then take it on any given month.
I guess the point I'm trying to make is that being a succesfully consistent daytrader is approxamately the same as being the Rolling Stones or U2, very few and very far between.
I know far more swing and options traders that have a lot longer runs.
I DayTrade, using a totally automated multiple strategy systems that change based on 5 to 10 day walkforward analysis. I trade electronic futures on CME and CBOT. I have not had a losing month since I began three year ago. I know another trader with an automated system with similar results. FYI...I am a X computer professional and so is the other trader I mentioned.