if you are a winning daytrader(say in ES futures) your returns might be helped or hurt by market conditions but the in the end of the year they have everything to do with the size of drawdowns you are willing to take and the degree of leverage. You could have a 300%+ year if are willing to take high drawdowns(but that don't threaten you ability to keep trading, this point is very important). but if you buy into the 'i can only risk 0.5% of my account per trade' you will settle for mediocre returns while being fooled that you are 'managing my risk'
Is the retail daytrader an endangered species?
- Thread starter Darshan
- Start date
if you are a winning daytrader(say in ES futures) your returns might be helped or hurt by market conditions but the in the end of the year they have everything to do with the size of drawdowns you are willing to take and the degree of leverage. You could have a 300%+ year if are willing to take high drawdowns(but that don't threaten you ability to keep trading, this point is very important). but if you buy into the 'i can only risk 0.5% of my account per trade' you will settle for mediocre returns while being fooled that you are 'managing my risk'
I would not label any return upwards of 50% (with profits withdrawn and not compounded) as mediocre !
candletrader
Maybe 15 years ago i used to trade the End of day charts. I did not do stocks, i did commodities. I named it "MISSIONS 10", FAB 10. I reviewed approx 25 or so commodities futures charts and picked the 10 that pinged my interest for the next days trades.........AFTER.........the mkt opened. I was not into getting nailed by opening gaps in futures.
It was successful but i found the afternoons boring so i migrated to daytrading. The truth be known.... even in daytrading most profits are made in the mornings. In my opinion the technicals are not as reliable in the afternoons. That is not saying some afternoons are not wild since the banks managed to blow themselves up again.
Totally agree sweeping profits out at end of each month, keeps one sharp and consistent. Compounding a daytrading account is a recipe for disaster imo. My thinking is slow and steady, just increase the amount of cars some as you move on but stick to what got you there.
PS: I never got into poker. Have enjoyed watching it when the big tournaments are on. Very good dollar there these days, but like any profession the few get to the top. The draw to poker is kind of like trading..........easy entry. The ratio to real winners in poker compared to trading is probably pretty close. Yes many amatuers get to the big table but the 15 minutes of fame is fleeting. The pros are there more often than not.
Good trading today.
PSS: Sweeping the profits every month protects your money from a broker blowup. Cold day in hell i leave a lot of money in the account. Maybe that is why coumpounding was never a plan.
Maybe 15 years ago i used to trade the End of day charts. I did not do stocks, i did commodities. I named it "MISSIONS 10", FAB 10. I reviewed approx 25 or so commodities futures charts and picked the 10 that pinged my interest for the next days trades.........AFTER.........the mkt opened. I was not into getting nailed by opening gaps in futures.
It was successful but i found the afternoons boring so i migrated to daytrading. The truth be known.... even in daytrading most profits are made in the mornings. In my opinion the technicals are not as reliable in the afternoons. That is not saying some afternoons are not wild since the banks managed to blow themselves up again.
Totally agree sweeping profits out at end of each month, keeps one sharp and consistent. Compounding a daytrading account is a recipe for disaster imo. My thinking is slow and steady, just increase the amount of cars some as you move on but stick to what got you there.
PS: I never got into poker. Have enjoyed watching it when the big tournaments are on. Very good dollar there these days, but like any profession the few get to the top. The draw to poker is kind of like trading..........easy entry. The ratio to real winners in poker compared to trading is probably pretty close. Yes many amatuers get to the big table but the 15 minutes of fame is fleeting. The pros are there more often than not.
Good trading today.
PSS: Sweeping the profits every month protects your money from a broker blowup. Cold day in hell i leave a lot of money in the account. Maybe that is why coumpounding was never a plan.
1--> I don't play tournies!! I play a mathematical short stack strategy in no limit holdem cash games. I datamine my opponents and calculate hand ranges against their raising ranges that are at least breakeven... the strategy is to re-raise my opponents all-in in on statistically breakeven situations, because the fold equity is what makes the profits... and, if they don't fold, I have a hand with reasonably strong showdown potential.... it's not actually poker, but more of being a pain in the ass to the opponents, cos when I double up, I leave the table...
2--> I don't trade during the day... I play poker... I do my "trading" in the evening...
Good trading to you today though!
re: getting nailed by gaps
This is not actually a problem... if it gaps down a bit, I get a better price... if it gaps up, I dont get executed (limits order, not market orders for entry)... if it gaps down below my stop, obviously no loss is taken...