Originally posted by Miki
"I intend to sit in a comfy chair, push some buttons, and make hundreds of thousands of dollars a year!"
Hmm, two out of three â I think I made it!
So you too don't have a comfortable chair?
Hello!.... Hey, watch this trick!
- Thread starter futurecurrents
- Start date
So you too don't have a comfortable chair?
Dear "Bungrider",
this is in response to your question "How is success defined?"
The perception of success is very subjective. I.e., if you feel successful, you are successful.
To objectify success, we must quantify it, which can be based on the professional background and previous or current earning power of the trader, and measured by "opportunity cost".
Following is an excerpt from my business plan for a trading business, which I wrote as part of my MBA thesis:
Loss and profit phases
From a âprofit and lossâ standpoint, there will be four phases in the trading business (these phases could be partially overlapping):
Phase 1: loss phase
Phase 2: break-even phase
Phase 3: opportunity cost coverage phase
Phase 4: profit phase.
1. The âloss phaseâ occurs due to small share sizes (for training purposes) and lack of experience. This phase is a natural part of the learning curve, but often psychologically difficult to pass through. It is expected that initial losses will be between $2,000 and $5,000.
2. The âbreak-even phaseâ occurs as the traderâs skills improve and share size increases; profits and losses are at equilibrium (P&L = $0).
3. The âopportunity cost coverage phaseâ occurs when the traderâs profits are approximately equal to his / her opportunity cost. The opportunity cost is the income that the trader foregoes by trading, e.g. his / her income from employment. In the case of this trader, the opportunity cost is $300 per day.
4. The âprofit phaseâ occurs when the profits exceed the opportunity cost.
Hope this helps. "Good luck" in your trading.
this is in response to your question "How is success defined?"
The perception of success is very subjective. I.e., if you feel successful, you are successful.
To objectify success, we must quantify it, which can be based on the professional background and previous or current earning power of the trader, and measured by "opportunity cost".
Following is an excerpt from my business plan for a trading business, which I wrote as part of my MBA thesis:
Loss and profit phases
From a âprofit and lossâ standpoint, there will be four phases in the trading business (these phases could be partially overlapping):
Phase 1: loss phase
Phase 2: break-even phase
Phase 3: opportunity cost coverage phase
Phase 4: profit phase.
1. The âloss phaseâ occurs due to small share sizes (for training purposes) and lack of experience. This phase is a natural part of the learning curve, but often psychologically difficult to pass through. It is expected that initial losses will be between $2,000 and $5,000.
2. The âbreak-even phaseâ occurs as the traderâs skills improve and share size increases; profits and losses are at equilibrium (P&L = $0).
3. The âopportunity cost coverage phaseâ occurs when the traderâs profits are approximately equal to his / her opportunity cost. The opportunity cost is the income that the trader foregoes by trading, e.g. his / her income from employment. In the case of this trader, the opportunity cost is $300 per day.
4. The âprofit phaseâ occurs when the profits exceed the opportunity cost.
Hope this helps. "Good luck" in your trading.
"Nothing recedes like success."
-Walter Winchell
-Walter Winchell
bung leave it to you to dig out old worthless threads and waste everyone's time :-/
Thanx Chisox and all. There is probably a reason this thread has been resurrected. Perhaps a public display of my weaknesses is good for me and maybe others also.
I must say these first two months trading have been manic. The month of May I did well and the month of June I traded like a Dickhead. It's probably fair to say that June was a fairly atypical month for the market but... basically straight down. My shorts did ok early in the month but toward the end I guess the shorters were covering causing more of my buy stops to be hit. The lack of profitability and setups under my method made me bend my rules and do other stupid things. I tried forcing it. My patience tested me and I failed. I gave back all my June profit and now I'm back to where I started.
These are some of the things I wrote in my journal: Don't get nervous.....Follow rules......Be clear on rules......Be there.....Get alternate broker (datek server breakdowns screwed me again...minus $750)....Be careful with executions....Follow rules...Don't get nervous...stay with the rules.....don't make half assed new rules in the middle with no testing history......don't get selective, either trade or don't trade don't half ass trade...FOLLOW RULES!!
I'm starting to get an idea about how to trade well. Something about discipline or rule following or being emotionless...........Nah, that can't be it!
*************************************************
"All miseries derive from not being able to sit quietly in a room alone."
- Pascal
I must say these first two months trading have been manic. The month of May I did well and the month of June I traded like a Dickhead. It's probably fair to say that June was a fairly atypical month for the market but... basically straight down. My shorts did ok early in the month but toward the end I guess the shorters were covering causing more of my buy stops to be hit. The lack of profitability and setups under my method made me bend my rules and do other stupid things. I tried forcing it. My patience tested me and I failed. I gave back all my June profit and now I'm back to where I started.
These are some of the things I wrote in my journal: Don't get nervous.....Follow rules......Be clear on rules......Be there.....Get alternate broker (datek server breakdowns screwed me again...minus $750)....Be careful with executions....Follow rules...Don't get nervous...stay with the rules.....don't make half assed new rules in the middle with no testing history......don't get selective, either trade or don't trade don't half ass trade...FOLLOW RULES!!
I'm starting to get an idea about how to trade well. Something about discipline or rule following or being emotionless...........Nah, that can't be it!
*************************************************
"All miseries derive from not being able to sit quietly in a room alone."
- Pascal