How do famous swing traders like Dan Zanger size up so fast?

[M.W.]

CB arb, single name and index otc options, dispersion books, to name a few our desk embarked on. Fully bank funded, accountable solely to internal reporting lines. Not stuff retail would get access to, but that was not the point. The point was that just because a few cowboys took insane risk, were bloody lucky in timing and positioning, and sucked the last penny out of the lottery wins through youtube views and merch does not make them long term successful nor great traders. Almost all of them stopped producing after the insane dislocations in the market ended.

You making $30-100 million year after year.

 

[Laissez Faire]

CB arb, single name and index otc options, dispersion books, to name a few our desk embarked on. Fully bank funded, accountable solely to internal reporting lines. Not stuff retail would get access to, but that was not the point.

Okay. So you made $30-100 million year after year within an institutional framework/firm, colleagues and unlimited funding.

That's not even comparing apples and oranges.

Honestly, I think it's more impressive with a retail trader who builds a small fortune completely on his own starting out with small capital and no guidance.

The point was that just because a few cowboys took insane risk, were bloody lucky in timing and positioning, and sucked the last penny out of the lottery wins through youtube views and merch does not make them long term successful nor great traders. Almost all of them stopped producing after the insane dislocations in the market ended.

Honestly, I don't understand your criticism.

Quallamaggie didn't take insane risk from what I understand, but yes, he did exploit a massive bull market year after year and had the consistency to keep increasing his play.

And isn't that what trading is all about? Exploiting the market?

Plenty of institutional traders and funds experienced the same thing, i.e., a strategy stops working or an inefficiency disappears. I don't think Quallamaggie's strategy ever stopped working though. Just see the recent bull run we had off the recent lows. He exploits trending moves which are a fact of the market place. His method would only stop working if the market stopped moving.

 

[M.W.]

You don't accumulate millions of dollars starting from 10k within the span of a few years and don't take insane risk. It's really extremely simple math to prove that point. He blew up his accounts multiple times

Okay. So you made $30-100 million year after year within an institutional framework/firm, colleagues and unlimited funding.

That's not even comparing apples and oranges.

Honestly, I think it's more impressive with a retail trader who builds a small fortune completely on his own starting out with small capital and no guidance.



Honestly, I don't understand your criticism.

Quallamaggie didn't take insane risk from what I understand, but yes, he did exploit a massive bull market year after year and had the consistency to keep increasing his play.

And isn't that what trading is all about? Exploiting the market?

Plenty of institutional traders and funds experienced the same thing, i.e., a strategy stops working or an inefficiency disappears. I don't think Quallamaggie's strategy ever stopped working though. Just see the recent bull run we had off the recent lows. He exploits trending moves which are a fact of the market place. His method would only stop working if the market stopped moving.

 

[newwurldmn]

He either used insane risk, insane turnover, likely both or he got extremely lucky (like buying 10,000 bitcoin for the price of a pizza)

Okay. So you made $30-100 million year after year within an institutional framework/firm, colleagues and unlimited funding.

That's not even comparing apples and oranges.

Honestly, I think it's more impressive with a retail trader who builds a small fortune completely on his own starting out with small capital and no guidance.



Honestly, I don't understand your criticism.

Quallamaggie didn't take insane risk from what I understand, but yes, he did exploit a massive bull market year after year and had the consistency to keep increasing his play.

And isn't that what trading is all about? Exploiting the market?

Plenty of institutional traders and funds experienced the same thing, i.e., a strategy stops working or an inefficiency disappears. I don't think Quallamaggie's strategy ever stopped working though. Just see the recent bull run we had off the recent lows. He exploits trending moves which are a fact of the market place. His method would only stop working if the market stopped moving.

 

[tomkat22]

does not make them long term successful nor great traders.

So what makes a great trader? Give me some names.

 

[hilmy83]

So what makes a great trader? Give me some names.

 

[taowave]

I find in the land of directional bets,risk management is the easiest part..Are you talking derivatives??


Let's forget about the Kullamagi as I agree he's a momo unicorn in the perfect unicorn enviorment.

Before I disagree with "making it" and being wired, we should define making it...

You can train someone to learn the trade but there many traits that can't be learned to be a good risk manager. One has those traits or one does not. You can't magically change a person's DNA makeup. That's not just my belief, thats what every seasoned trader with long term positive track record will tell you and what the original turtles experiment also revealed. Very few who possessed those inborn traits made it, the rest fizzled out and went for other careers.


What surprised me about your post is that you start denying the above but in the latter part of your post say exactly what I just stated. Without being "wired right" you can get all the training in the world but won't make it. Wired up for me means what you are born with, not how someone shapes you.

 

[hilmy83]

Need to support content creators like this

Trading record of others is very hard to get your hands on. Does reading about them in market wizards good enough? particpate in trading competition? broker or tax statements posted publicly? Visit their house and see where they live and ask them to show you their account? Livestream trading on youtube or twitch?

 

[smallfil]

I dont think you know what pyramiding is. Go read Tomorton's comment on the first page of this thread. He outlines it well. Pyramiding should never increase your risk.

When you add monies to any position, you are increasing the amount at risk in that position are you not? So, if you buy 100 shares of XYZ at $10 per share, you had $1,000 at risk, now you pyramid and add say another 100 shares but, now the share price is at $15. Your 2nd investment is now $1,500. Total at risk now is $2,500? Now, you have momentum working for you and the stock can go continue to go higher or it can take out your stop loss. Depending on what price you got sold, you would have either a gain or loss. Nothing is guaranteed in trading. Was just pointing out the increased risk. Like it or not, that is reality.

 

[Laissez Faire]

You don't accumulate millions of dollars starting from 10k within the span of a few years and don't take insane risk. It's really extremely simple math to prove that point. He blew up his accounts multiple times

I think it was more than a few years as he's been trading for over a decade. He did say he blew his initial small accounts starting out.

He either used insane risk, insane turnover, likely both or he got extremely lucky (like buying 10,000 bitcoin for the price of a pizza)

I don't think the Bitcoin analogy is applicable as that's essentially just a single lottery ticket. Quallamaggie was trading frequently, so I don't think it's possible to be that lucky for that long.

We can agree that his method was perfectly suited for the current market conditions which he must have exploited fully. So, in that sense he did of course have a great bit of luck.

Anyway, don't think I'll be spending any more time defending him as I don't have any vested interested in the guy.

As for insane risk, I think I mentioned a few times already a very wealthy trader in Norway (former institutional trader) who blew his entire fortune ($100M) in one single trade. Now, that would be insane risk.