Quote from AAAintheBeltway:
Natalie,
I think DT-waw and I are taking a somewhat skeptical view for one simple reason. No one is reporting thekinds of returns implied by averaging one ES or S&P point per day. I have said before that plenty of people can do it for a year or two. I'm not aware of anyone who has done it consistently for five or more years. Even with a relatively small starting equity, the money become astronomical over time.
Why is it so difficult? I suppose an academic would say because of the random nature of markets. Systematic traders are frustrated by changing market environments. Discretionary traders are not machines. In addition to the changing nature of markets, they face personal performance issues. Tiger Woods doesn't win every golf tournament he enters either.
I don't think the "one point a day" limit plays a role for most traders. If you are trying to average one a day, it is silly to quit when you make a point because you will inevitably have losing days. You need to build a cushion.
I think there is an aspect of what you propose that does happen. Personally, I try to be in the green every day. I know intellectually that it is meaningless, that a proper systematic or semi-sytematic approach depends on trading consistently and not modifying my approach to protect a positive day. Yet I do it. And I will continue to do it. It's important psychologically to me, and that is a benefit that you can't quantify.
