LOL At Those Who Try To Get Rich Trading
- Thread starter Fundlord
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Did you blow up again? I warned you about trading with such high leverage. It doesn't work, not unless you are an HFT anyway.
Instead of being an idiot it would be better to first read ALL my postings before making idiot statements.
To calculate how much money you can make you need at least the following information:
1. account size that is traded: this can be an account with reinvestment of profits or an accountant that always keeps the same size as profits are taken out. Not everybody wants to live for trading, many want to trade for a living, especially if they make good returns. It means limit your trading. So first limitation to reach gazillions.
2. maximum size that can be traded: each item has his limit. Examples: you cannot trade 25 millions contracts ES a day or 100 million stocks Apple. So second limitation to reach gazillions.
3. number of products traded: you can trade only one product or you can trade thousands of products 24/24. So third limitation to reach gazillions.
4. number of years that the returns are made: you can be successful for 25 years or you can be successful for 1 year. So fourth limitation to reach gazillions.
5. type of system used for trading: Some systems can be automated, others not. If not automated your room for growing is limited. So fifth limitation to reach gazillions.
To answer your idiot question:
If my account is $2500 and I make during 20 working days net 2.5 points ES a day on 2 contracts, I have a net profit of 200%. And I will not have gazillions. (20*2.5*50*2=5000). If compounded the profit will even reach $12,250 or 490% (12,250/2,500)
If my account is $250,000 and I make during 20 working days net 2.5 points ES a day on 200 contracts, I have a net profit of 200%. And I will not have gazillions.
In both samples I have 200% but in $ the result is completely different.
There is no 1:1 relation between returns and $ profit. You can have more profit with a 10% return than with a 200% return. All depends of a number of parameters, like invested capital, capitalization...
But trying to understand all this is maybe out of reach for you. Because there is a link between intelligence and understanding parameters that influence results in trading.
But you are in the Chit Chat forum, so maybe one day you can get to the real trading level and leave the Chit Chat forum.
So your first lesson should be: high returns are not automatically equal to high profits.
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Man oh man are you trolling here or just plain stupid?
Do you even know how compounding works? $2500 compounded monthly at 200% returns = 1.3 BILLION after just one year, so yes it will hit gazillions in under 10 years if you manage to make 200% every MONTH. Of course there is no such thing as a gazillion (its a figure of speech duh) and strategies are limited by liquidity, but you'd have to be at least a billionaire by now unless you have only been trading for a couple of months, in which case your claims would be invalid because a few months is hardly a long term track record. Nobody cares if you managed to make a 200% returns a month for 3 months, because you are almost certain to fail at some point, trading with that kind of leverage.
There are apparently also a few problems with your reading abilities (or maybe with your huge ego, which can detremental in trading).
In my first posting I said that I make 200% a month.
In my next posting I gave an example to clarify my first posting: If my account is $2500 and I make during 20 working days net 2.5 points ES a day on 2 contracts, I have a net profit of 200%. And I will not have gazillions. (20*2.5*50*2=5000). If compounded the profit will even reach $12,250 or 490% (12,250/2,500)
Proof me where this is wrong. You cannot as it is not wrong. SO YES I MAKE 200% A MONTH.
I daytrade for +20 years by now. To avoid that you will start to make wrong assumptions again: I don’t say, and never said that I was making 200% a month from start (20 years ago). So don’t start to calculate 200% a month for 20 years.
Your next remark: "Nobody cares if you managed to make a 200% returns a month for 3 months, because you are almost certain to fail at some point, trading with that kind of leverage."
This remark is contradicted by reality as I still survive after +20 years of daytrading. I wiped out years ago 1 time, learned my lesson and from then till now my maximum drawdown has always been less than 30% after thousands of trades. I cannot and will never fail for the simple reason that I only use a small amount of my capital. I would never compound the way you do in your assumptions. Even wiping out 20 times in a row will not hurt me anymore. That should be obvious because at 200% profit a month, after 12 months I have already 24 times my invested capital put away for bad times or to diversify my investments. So after 20 consecutive wipe outs I stuill have 4 times my initial capital left over to start again. I explained this already before in a very detailed way. Smart traders will never compound the way you do in your calculations. On top of that my calculations show clearly that I don't compound at all. So your compounding argument is totally irrelevant.
I also wrote: "I can make a living from a $2500 account. Making a living means at least net $5000 a month."
This should be very clear: make $5000 for a living. This means that you take every month $5000 FOR A LIVING. So clearly no compounding at all as you take the profits to live from.
So the question is: who is trolling or plain stupid?
Tell me where my explanation is wrong. But don’t start to make own assumptions out of frustration and manipulate my statements.
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No, even if you start with $100, at 200% per month, at the 12 month mark you'll have 53.1MIL, obviously you don't own all the money in the world till month 18 area LOL
Ofcourse, as the account goes up making 200% is trickier, I've made 200% a few times over the years in a week.
The issue is, your talking about single month, not the long term effect which is well stupid.
Actually, you don't need high leverage to make 200% in a month, it helps, if you day trade you can make 20 trades per day, risk 2% per trade, some will maybe run to 10%, some will lose, some the 2% risk level, it's the quantity of the trades which add up to the big profits.
Ofcourse the amount of trades you make, start screwing up and easily knock 50% of your account with a string of losers.
But worth it to make 200% most months!
QUOTE="Turveyd, post: 4222206, member: 483471"]The issue is, your talking about single month, not the long term effect which is well stupid.[/QUOTE]
Don't agree. The point was what the OP wrote: you cannot make a living from a 10K account.
My answer was related to that statement. I speak about every month over and over again 200%, not just 1 month.
Just to show how stupid this compounding argument is: Renaissance makes around 80% net a year.
So after 20 years with only 100 million starting capital they should have $12.748.236.216.396,10 . They surely don't have this amount of money, not even 10% of it. And their starting cpital was much higher than a lousy 100 million.
Even the 10 year compounded result of $35.704.672.266,24 is still far away from what they have in capital.
So they fall in the same category is me? Trolling or plain stupid?
Renaissance stopped already a long time ago to accept money and they already distributed lots of profits because they cannot handle the money anymore. They confirm that the compounding theory to make gazillions is total nonsense. Only newbies still watch that theory as they are so focussed on trying to become rich. Real professional traders don't focus on becoming the richest man on earth. They are interested in quality of life. But if you are not successful in trading you really need money, money, money to pay the bills and survive. Then you start compounding and dreaming about money.
Don't agree. The point was what the OP wrote: you cannot make a living from a 10K account.
My answer was related to that statement. I speak about every month over and over again 200%, not just 1 month.
Just to show how stupid this compounding argument is: Renaissance makes around 80% net a year.
So after 20 years with only 100 million starting capital they should have $12.748.236.216.396,10 . They surely don't have this amount of money, not even 10% of it. And their starting cpital was much higher than a lousy 100 million.
Even the 10 year compounded result of $35.704.672.266,24 is still far away from what they have in capital.
So they fall in the same category is me? Trolling or plain stupid?
Renaissance stopped already a long time ago to accept money and they already distributed lots of profits because they cannot handle the money anymore. They confirm that the compounding theory to make gazillions is total nonsense. Only newbies still watch that theory as they are so focussed on trying to become rich. Real professional traders don't focus on becoming the richest man on earth. They are interested in quality of life. But if you are not successful in trading you really need money, money, money to pay the bills and survive. Then you start compounding and dreaming about money.
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SAD?
http://www.mayoclinic.org/diseases-...ctive-disorder/basics/definition/con-20021047
Maybe you should shed some light on the problem.
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