The problem with leverage is it is a two-sided sword. Yes, the business is theoretically scalable, but at what risk-adjusted return. In an intraday timeframe, a smaller number of participants can greatly affect your outcome more frequently. Think about institutional orders bidding up or down to find liquidity. On a longer timeframe, the effects of short term movements are reduced and then it comes down to your ability to trade your convictions. If I had to start over today I would skip them entirely. You can have the same impact and scalability trading multiple longer timeframe setups as a portfolio across multiple classes of instruments than concentrating risk on a single leveraged intraday position. Take my advice for what it's worth, I just couldn't sleep after reading your post as it will send others down a path of blowing up.
Intraday or long term
- Thread starter trader1974
- Start date
The problem with leverage is it is a two-sided sword. Yes, the business is theoretically scalable, but at what risk-adjusted return. In an intraday timeframe, a smaller number of participants can greatly affect your outcome more frequently. Think about institutional orders bidding up or down to find liquidity. On a longer timeframe, the effects of short term movements are reduced and then it comes down to your ability to trade your convictions. If I had to start over today I would skip them entirely. You can have the same impact and scalability trading multiple longer timeframe setups as a portfolio across multiple classes of instruments than concentrating risk on a single leveraged intraday position. Take my advice for what it's worth, I just couldn't sleep after reading your post as it will send others down a path of blowing up.
no problem to have very different views.
You can't sleep with very high leverage.
I can't sleep with very low leverage.
The higher the leverage, the better I can sleep.
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The truth is once your trading account grows to six figures, you know damn well that you can't afford to just go all in and all out in one trade. The reason being is that once you are a successful trader, you've learnt enough about risk management stuff that would prevent you to take such risky trades.
If I were you at that point, I'd begin to "invest" into tangible assets like real estate (not right now since the cycle is about at peak.) That's what I exactly did about 7-year ago. I hunted and bought residential real estate one by one that was way below market value and renovated by myself so I could rent them out to make extra income while waiting for the right moment to sell. Fast forward to the present while real estate cycle is reaching maturing cycle, I sold them one by one within last few years to make excellent money while paying zero taxes.
My point is that if you really want to be rich or acting like the way Warren Buffet did, you got to know how to invest money to make money by thinking outside a box. Profits from trading alone might allow you to live a comfortable life, but not a luxury life if your goal is to get rich since you have to pay high taxes and you can't go all in and all out. I'm in my 40s now and I can bet that I've been doing way much better than many of you with a couple of millions bucks sitting in high interest saving accounts, while I keep pouring money in from trading. Unlike others, I STILL trade small and a couple hundred of $$$ from trading profit per day is all I'm happy to live with. No need to trade big for me since capital preservation is on top of everything in my trading business.
In the meantime, I wait for housing market collapse in the next few years so that I'd begin to "invest" some of my money again. Yet, money sitting in my bank account keeps growing through GIC investment on those index linked instrument with 100% principal protection.
THAT'S HOW I REACH FINANCIAL FREEDOM
If I were you at that point, I'd begin to "invest" into tangible assets like real estate (not right now since the cycle is about at peak.) That's what I exactly did about 7-year ago. I hunted and bought residential real estate one by one that was way below market value and renovated by myself so I could rent them out to make extra income while waiting for the right moment to sell. Fast forward to the present while real estate cycle is reaching maturing cycle, I sold them one by one within last few years to make excellent money while paying zero taxes.
My point is that if you really want to be rich or acting like the way Warren Buffet did, you got to know how to invest money to make money by thinking outside a box. Profits from trading alone might allow you to live a comfortable life, but not a luxury life if your goal is to get rich since you have to pay high taxes and you can't go all in and all out. I'm in my 40s now and I can bet that I've been doing way much better than many of you with a couple of millions bucks sitting in high interest saving accounts, while I keep pouring money in from trading. Unlike others, I STILL trade small and a couple hundred of $$$ from trading profit per day is all I'm happy to live with. No need to trade big for me since capital preservation is on top of everything in my trading business.
In the meantime, I wait for housing market collapse in the next few years so that I'd begin to "invest" some of my money again. Yet, money sitting in my bank account keeps growing through GIC investment on those index linked instrument with 100% principal protection.
THAT'S HOW I REACH FINANCIAL FREEDOM
Knowledge expands through time, you learn to adapt and take advantage of opponents lack of knowledge. Even in the oceans.
It is a brilliant idea...Until all the fishhuggers complain about how it will destroy all sealife as we know it, destroying the food-chain and thus ending life on earth as the ecosystem collapses. There is no renewable solution that will be accepted, ever, because it will always impact animals in some way, or impact the "view" or "lifestyle" of the zero CO2 fags.
They will not allow solar, wind, wave, geothermal, nuclear, bio, etc etc ad nauseum because it will either affect their own comfort, or the flora and fauna of the earth.
So we have to come up with something that will fulfill those needs. And the biggest CO2/environmentalist wackos to oppose these ideas will be the ones who drive to their town halls in their gas-guzzling SUVs to voice their opine about how the world is not doing enough to stave off the CO2 problem.
You know, the same ones who drive 2 miles to their gym in those same SUVs to ride on a stationary bicycle for an hour.
LOL Quality Rant, I always walk the 1mile to the gym, makes it part of my training, I'll use car if driving by, quite frequently wake up the next day and where the hell is the car LOL
Algae farms in the desert, problem solved, all stop worrying and melting.
Planet just needs about 90% less people on it, they'll it'll be sustainable, which this will create, the world will find balace, humans myself included are expendable.
Yes I can, then lose 85%. You have a poor grasp of randomness but you're not alone.
I prefer my dad's logic. "Windmills ruin my view of the sea so let's keep using oil shale to pollute the groundwater, at least it's far from where I live".
If the planet had 90% less people on it, then the infrastructure would be unsustainable.
It would mean everyone would have to work. lol!
Sorry, I just realized this is not the right thread to get into it. Start a new one in chit chat if you want, but this distracts from the trading theme here. Apologies for the rant people. Sorry. Very sorry. I thought this was some other thread.