Don’t know as have not even looked at the markets. Been in town doing other things. What do you think?
From Micros to Millions: 2% per day
- Thread starter sstheo
- Start date
Thanks sstheo for the response.
5% is a good approach. This is better than stop trading after fixed dollar amount or XX amount of trades.
Question please:
1. What percent do you risk per trade per day?
2. How did you determine 5% day max daily drawdown? I need to incorporate such a money management in my trading as well.
Thanks,
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You guys are hilarious!!
CME membership non-refundable fee ($2000)
+ monthly lease fee
+ capital gains taxation
- trading business/admin expenses
+ 15.3% self-employment taxation.
Meanwhile, OP hasn't surpassed tier 1 volume, in micros!!
Yea, time for a CME seat lease... LOL
Just looked at ES. No not a small pullback trend day. Spbt are characterized by slow grinding relentless moves bullish or bearish with small pullbacks and generally smaller range bars. It is basically created by program buying. If a bullish grinding trend, every PB is bought, bullish programs control it, and bears aren’t successful pushing it down. Same for bearish but bears control it and bulls can’t push it up.
In bullish (Spbl) price mostly stays above 20 ema but may drop below it on a deeper PB after 1:30 or 2:00 p.m. On Spbr trends price tends to stay below the 20 ema as it grinds south but may break above 20 ema after 1:30 to 2:00. However, there are times price stays above or below the 20 ema the entire session.
You guys are hilarious!!
CME membership non-refundable fee ($2000)
+ monthly lease fee
+ capital gains taxation
- trading business/admin expenses
+ 15.3% self-employment taxation.
Meanwhile, OP hasn't surpassed tier 1 volume, in micros!!
Yea, time for a CME seat lease... LOL
Maybe you need to learn how to read? Nobody said he should lease a seat right now, all we where doing is talking about the advantages of leasing a seat, which could be an advantage to everyone trading higher volume, we were not specifically talking about OP's situation.
Now for the increased taxes, I am not from the USA so all that doesn't matter for me, i get taxed the same rate, retail or professional, seat or no seat, doesn't matter, that is why i didn't bring taxes into the equation since they are different for everyone.
You guys are hilarious!!
CME membership non-refundable fee ($2000)
+ monthly lease fee
+ capital gains taxation
- trading business/admin expenses
+ 15.3% self-employment taxation.
Meanwhile, OP hasn't surpassed tier 1 volume, in micros!!
Yea, time for a CME seat lease... LOL
sstheo seems to be on a very good way. If he keeps going like this, leasing a seat will make sense already within the next 1-3 months. Of course, because of the leasing rate the advantage will be very small at the beginning, but if he keeps growing and growing, this might save him a lot of money.
Why not give him some support and hope and ideas about things that might possibly help him in the near future, instead of constantly repeating that old and boring "no, it is not possible, nobody can do, lol you are a joke, you will regret it, stop dreaming" disk.
Improving and growing as a trader has a lot todo with positive thinking, a general positive attitude to life. You have to program yourself for success, if you want to make it through this yearlong hard and lonely battle.
I prefer to support an uprising trader with some good ideas, hints and positive thoughts rather than constantly throwing negativity at them. We dont have to become completly unrealistic, we should not make false promises or talk crap that is impossible to achieve. But when a glass contains only 50% of water, it is up to you how to look at it. Is it half full or half empty ? I prefer to motivate people to see the positive things, the opportunities.
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And yet everyone OVERLOOKS tax consequences, and advantages, of such a move.
That piece of info should be included in your post on the specific topic. The OP seems to think they(your calculations) are applicable to his specific situation.
If a trader made a 1 percent return every trading day on $100K and reinvested the profits, how much would he have in one year?
[URL='https://www.quora.com/profile/Alister-A']Alister A[/URL]
, Quant & Analyst
Answered June 20, 2018 · Author has 55 answers and 121.5K answer views
If you use 220 working days as a basis then $892,693.20, or nearly a 900% profit, that’s about what we achieve however you have a scaling issue, much to everyones disbelief you cannot just compound ad-infinitum, there are levels in the financial system and once you hit them returns stay static and even fall.
The other problem is that compounding every day causes accounting and psychology trauma, more realistically you keep the profits static on a weekly basis and compound the following Monday, this is what we do. With that method you will generate $703,998.90 after 40weeks, which is how our funds trade, or nearly 700% profit, even though the profits are only 20% lower the psychological levels are 80% less and therefore you are more likely to achieve this.
Most go for the first route and therefore never sustain the profits more than weeks or months if they are lucky and the wind is blowing in the right direction. We have higher daily percentages and lower trading volume, which nets out to 95% reduction is psychological stress, but requires a complex set of dynamics to achieve it.
I do wish him well.
His track however has two major flaws as far as I am concerned.
1) He has failed to scale up his size based ON HIS OWN rules. There is always a reason why he "can't"... He has a fear problem that he must address.
2) He has bailed on the "experiment", for whatever reason, TWICE in the (not distant) past.
I am not seeing much difference this go around.
@tiddlywinks
You are right with this, but we have to admit it is a special year with that Corona crap. He is in the real estate business, and especially in this branch the business has ebbs and flows, the work comes and goes, and when there are opportunities he probably has to take them, to be able to support his family.
I am also somewhat sceptic if he can keep his trading up this time, but just like you I wish him the best, and try to support him with positive input and ideas, and leasing a seat is just one of them. We do not get to specific into this thing here, but I think it is a good idea to talk about it in such a thread. Many guys (and girls ?) here who have probably not heard yet that such possibilities even exist. I have talked with quite a few members on ET within the past few years and it amazes me that many valueable hints that help especially beginning or intermediate traders like leasing a seat or an exchange rebate program are unknown to so many of them. So why not bring some of this stuff up in a scalper's journal, in which a scalper is showing us his work and probably many other scalpers and wannabe(come)-scalpers read. If it helps at least one of them, it was worth writing about it.
You are right with this, but we have to admit it is a special year with that Corona crap. He is in the real estate business, and especially in this branch the business has ebbs and flows, the work comes and goes, and when there are opportunities he probably has to take them, to be able to support his family.
I am also somewhat sceptic if he can keep his trading up this time, but just like you I wish him the best, and try to support him with positive input and ideas, and leasing a seat is just one of them. We do not get to specific into this thing here, but I think it is a good idea to talk about it in such a thread. Many guys (and girls ?) here who have probably not heard yet that such possibilities even exist. I have talked with quite a few members on ET within the past few years and it amazes me that many valueable hints that help especially beginning or intermediate traders like leasing a seat or an exchange rebate program are unknown to so many of them. So why not bring some of this stuff up in a scalper's journal, in which a scalper is showing us his work and probably many other scalpers and wannabe(come)-scalpers read. If it helps at least one of them, it was worth writing about it.