Down to about $90k, where would you park it if your trading skills were trash?

DepthTrade said:
Realistically, the best one could do is make that loss back in 1.3 years. But, one would have to be trading it every day with perfect risk management and obviously a profitable edge. You would also need to be trading using x10 leverage, so your average ongoing average daily total Position Value would be $900k. Your equity draw down could be expected to be at -10% at times, for up to a couple days.
Your best bet is to probably walk away, and never look back.
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he could trade a 1mm paper account and earn less than the risk free rate. At least he could claim to be a great FX trader.
 
alistera said:
This is what will happen next, as you expose your capital in recovery you will at some point (months maybe quarters) experience a loss event from trying too hard along with market cycles, this will take your recovery profits back to zero.

At which point if you don't liquidate and start again at base capital slowly building up, less is more when starting out, you will inevitably expose your remaining capital to the markets, this usually doesn't have a happy ending.

Taking $90,000 capital at 25% per year, which couldn't be achieved, at non-compounded would take close to 6years to recover back to parity, compounded it will take 4years, this is your baseline.

Hence why when you hit a combined loss of 20% of account balance you liquidate everything and take a very long pause, I've come across people who did exactly what happened to you, they took the same self recovery road, however I will explain simply how it works as there is no one else on this site that can.

A standard hedge fund targets 15-20% per year profits (crypto is 70-100%), these require mostly accredited investors who are essentially millionaires, there are over 40million millionaires in the world with a planet of 8billion people.

That is circa 0.5% probability of 15-20% per year, if you want to target 25% per year then you need to target probability below 0.5%, unfortunately the world is told in the financial markets anyone can succeed, and they can, but only within that probability range.

Go back to retail (3-5% per year) or affluent (7-10% per year / mid management), you will experience more success, obviously your recovery to parity will increase with most choosing to recover the capital the same way they created it, outside of the markets, it is what it is.
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your math makes no sense. Anyone who read it is now dumber. I am going to buy an extended warranty now.
 
long said:
Again, no disrespect to OP. What you say is nonsensical. You make it sound like they would prefer hiring a trader with a losing record.
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No it's not like they prefer but it's just they don't care. They are just not that particular.
 
zghorner said:
Yea so I don't have an edge and just lose money constantly. Execution is solid, psychology decent, edge is poop.

Looking to just put some cash in longer term spots. VOO will probably get a portion of it but where else should I look? Any book or resource recommendations on liquid allocation? Not really interested in single company investments.

S&P made around 25% last year...did your trading account do better? Legit question if anyone outside of maybe Des and a few others are generating alpha....if my tradong account would have grown 25% last year I'd be pumped.

Thanks.
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buy s-p-y.
Have Diamond hands forever
Relax and enjoy.
 
Kevin Schmit said:
Then you path forward is simple:

Find. An. Edge.

Many edges have been posted here on ET. You just have to pay attention.

Someone posted a method and edge last Nov 11th. Would earn you at least 2% a day, trading a fifth of your account size (but probably not scalable, so you couldn't compound past low double digit millions). Little risk.

No one was paying attention though, post got no replies, no likes.
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I found the post guys link below

https://www.elitetrader.com/et/threads/?v=dQw4w9WgXcQ
 
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You can consider becoming a trading mentor so you don't waste your trading knowledge. Less pressure and riskfree too. But you have to be great at sales and marketing of course.

But 40k is hardly an expensive tuition. decade ago when there's no micro contract, newb could lost this amount in just couple weeks. If you like to continue, maybe start over by trading some micro contracts and work you way up.
 
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