Mental Ceilings and self fulfilling prophesies
- Thread starter Girlpower
- Start date
We are not talking about a mere one day, dude... we are talking long run averages... try and comprehend the mathematical implications of your 4-6 points per day per contract as a long run average, or forever be stuck in a delusional world...
Hi Candle
Please clarify below, as I am confused as well.
If a trader keeps using one unit of contarct in and out many times (say 10 times), (not Bruce' case since he sometimes has 2 contrcats outstanding) whether he's got 8 points per day.
Or the trader has got just 0.8 points per day.
(Assuming the trader can repeatedly attain the same performance for many years)
Candletrader,
As i see it with my limited expirience of this business
you shouldhave the following:
1. A technical plan for your trading.
2. A mentality plan for ýour trading.
3. A moneymanagement plan for your trading.
4. A follow up plan of your trades where you analyze
your executed trades.
But if no. 1 is bad it`s not a good start.
As i see it with my limited expirience of this business
you shouldhave the following:
1. A technical plan for your trading.
2. A mentality plan for ýour trading.
3. A moneymanagement plan for your trading.
4. A follow up plan of your trades where you analyze
your executed trades.
But if no. 1 is bad it`s not a good start.
Quote from marketsurfer:
after perusing this thread, perhaps the following book would be a good start to recognize the glaring issues with the topics discussed:
http://www.amazon.com/exec/obidos/t...002-4281573-2491253?v=glance&s=books&n=507846
enjoy,
surfer
It's at times like these when simply using someone else's punchline is apt...
Quote from OddTrader:
I don't fully understand the above calculation/maths of 1.44 pts.
When using one contract (in and out) to gain 8 points within a day, I would evaluate it is 8 points on that day. I would call you an 8-poniter on that particular day. Why not?
I know I might be wrong. That's why I need to ask MarketSufer for more maths books.
Sorry Bruce, I've just found out you use two contracts a few times.
I'm too tire now. Better go to bed.
Quote from OddTrader:
I don't fully understand the above calculation/maths of 1.44 pts.
When using one contract (in and out) to gain 8 points within a day, I would evaluate it is 8 points on that day. I would call you an 8-poniter on that particular day. Why not?
I know I might be wrong. That's why I need to ask MarketSufer for more maths books.
No, you're confusing that day's performance with my average over those 9 days. That day after expenses and losses amounted to $384.80. Divide that by $50 and you get a little over 7.5 pts.
Somewhere in this thread I posted Vic Niederhoffer's estimate of his own success: roughly two million contracts traded during 15 years and a profit of $70 per contract. Keep in mind he was trading full-size contracts...if you just assume the big S&P's at that time (he traded lots of bonds, too) were $500 a point and then just $250 a point you can see how incredibly hard it is to trade profitably. On those 196 trades I averaged $13.99 per trade.
Looking back at my data, commissions are my biggest obstacle. That and staying away from trading when I'm not in sync with the market.
Bruce