But that is not being rich. Saving has its purposes but its outcomes are -
1. your income has not increased
2. your material consumption has decreased
How do I get rich from trading?
- Thread starter nwoptions
- Start date
But that is not being rich. Saving has its purposes but its outcomes are -
1. your income has not increased
2. your material consumption has decreased
1. Unrelenting discipline
2. Aggressive money management
3. Some form of trading edge
Keep in mind that Marcus traded for Commodities Corp, who were pioneers in the commodity trading business. He spent his days surrounded by some of the top minds in trading at a time when financial news took 3 days to reach the dentists of the world....as a result, moves played out much slower, and trading was much easier for the smart guys/informed.
Couple the above with inflationary period of the time, and it wasn't uncommon to see commodity futures locked-limit up for 6 or 7 days in a row. Very fertile ground for trend/breakout trading, for those using quant methods at a time when very few others were.
Yes I have found this too. I have tested a few systems using pullbacks compared to just jumping into a rising trend, and have never found the pullback option to be better. This goes against prevailing wisdom I know. It seems possible that the advantage of buying a bit lower on a pullback may be outweighed by the chance that the pullback is actually a trend breaking down. The potential advantage of entering without a pullback seems amplified when shorting as the moves tend to be faster and easy to miss if you wait too long.
I buy before it is high and sell higher. You cannot beat that as I do what you do but always have a better entry. If you cannot find the point where the market turns you have to wait and buy high.
But even buying high has risks as you might buy just before the reversal and then you are toast.
My long term commodities model, based on so many years looks for price entering near extremes then trade counter to trend and hedged. Might taken days or years to reverse, but hedges take care of loses most of the time. Some years over 100% and others 10%. Have to be consistent, once new trend starts, more added on on pullbacks which also hedged.