End of the year P+L
- Thread starter Ivanovich
- Start date
Whoa there, I really didn't mean for you to take things personally, my comment was on the realized/unrealized differentiation which ALL of us could improve by dispelling, because there is no difference between the two at all -- ie, not closing out or reversing a position just because an open loss exists, where one would act differently if he or she were flat. That is all.
I noted your year-end results earlier and gave you kudos you deserved. But I don't post stupid comments to be stupid and meant what I said; the more readily we drop the "unrealized" qualifier to any losses the better. Good trading and hope your new year brings the same.
Quote from illiquid:
Whoa there, I really didn't mean for you to take things personally, my comment was on the realized/unrealized differentiation which ALL of us could improve by dispelling, because there is no difference between the two at all -- ie, not closing out or reversing a position just because an open loss exists, where one would act differently if he or she were flat. That is all.
I noted your year-end results earlier and gave you kudos you deserved. But I don't post stupid comments to be stupid and meant what I said; the more readily we drop the "unrealized" qualifier to any losses the better. Good trading and hope your new year brings the same.
So, ALL of us could improve by dispelling the realized/unrealized differentiation? And drop the "unrealized" qualifier? Ah, not so fast. I must disagree with such sweeping generalizations.
If seeing "no difference between the two at all" works for you, great. More power to you. In my trading business, I am always keenly aware of a very tangible difference between realized and unrealized P&L. Here's a simple example: one of my forex strategies is based on a key, experience-derived belief that, given sound, high-probability entries and proper position sizing (read: modest leverage combined with scaling in), I am consistently able to extract profits (as in realized P&L) by cutting profits short and letting losses run.
Please read the last sentence again -- that's not a typo there. Yeah, it's the opposite of that beyond-heavily-promoted mantra we've all read a million times and can recite in our sleep... And I guarantee you that I am far from the only forex trader holding -- and practicing -- that belief. (Anyone interested to learn more can read "Bird Watching in Lion Country" by Dirk du Toit, for a different, unique perspective on forex trading.) Relatively substantial unrealized P&L on individual entries from time to time is an integral part of that strategy. It works.
Quote from illiquid:
Whoa there, I really didn't mean for you to take things personally, my comment was on the realized/unrealized differentiation which ALL of us could improve by dispelling, because there is no difference between the two at all -- ie, not closing out or reversing a position just because an open loss exists, where one would act differently if he or she were flat. That is all.
I noted your year-end results earlier and gave you kudos you deserved. But I don't post stupid comments to be stupid and meant what I said; the more readily we drop the "unrealized" qualifier to any losses the better. Good trading and hope your new year brings the same.
I understand why you posted what you did - even if I don't outright agree with you. But comparing anyone - whether directly or indirectly - to Coinz/Skalpz is insulting. You wouldn't like being compared to him.
Quote from late apex:
So, ALL of us could improve by dispelling the realized/unrealized differentiation? And drop the "unrealized" qualifier? Ah, not so fast. I must disagree with such sweeping generalizations.
If seeing "no difference between the two at all" works for you, great. More power to you. In my trading business, I am always keenly aware of a very tangible difference between realized and unrealized P&L. Here's a simple example: one of my forex strategies is based on a key, experience-derived belief that, given sound, high-probability entries and proper position sizing (read: modest leverage combined with scaling in), I am consistently able to extract profits (as in realized P&L) by cutting profits short and letting losses run.
I'm not sure how you've actually managed to rationalize open losses as "integral" to a strategy; I'm guessing you come from the 'It's impossible to time a random market so why try' school of thought and all the weirdness it entails *grin*. But I've no doubt that whatever strategy you use, you can achieve better results once you discard the crutch of open vs closed gains and losses.