Read well,but my biggest profits have come trading one stock at a time,mostly numbers,NASDAQ charts...........NYSE STOCKS are on watch list,screens,because had unforgettable ,biggest gain from one NYSE........
Mr. SizeMan ?!?
- Thread starter saschabr
- Start date
The size you trade is very simple.
You should have a big enough trade on to make you want to do nothing else but focus on the screen and the market...and keep you on the edge of your seat...but so big that it will affect your lifestyle or pocketbook overall.
You can't play poker for matchsticks or pennies, and yet you can't risk your home or retirement on a single trade.
You should have a big enough trade on to make you want to do nothing else but focus on the screen and the market...and keep you on the edge of your seat...but so big that it will affect your lifestyle or pocketbook overall.
You can't play poker for matchsticks or pennies, and yet you can't risk your home or retirement on a single trade.
I believe Echo does that. While Echo is a professional firm not a prop firm, and not a true direct competitor of ours, I have to admit that I am very very impressed about the way they run their business.
At the very least, they are the only firm that I know of that post their commission rates up front on their web page. Everyone will get the same rate, same equipment, and if you do this much volume, you get this much discount. Clear, simple and to the point for everyone to see. No dodging bullets, no empty promises, if they have sufficient capital and can survive this tough market climate, this will be a serious competitor to deal with at some point in time.
I know a serious threat when I see one, and I talked to our owner about this up and coming firm many times. Unfortunately being prop with the HUGE advantage of being able to take on people with little to no capital, I don't think he really cares. It is inevitable when a firms grows large, it no longer caters to individual needs (that said, being a team leader it is my job to cater to individual needs).
Never ever underestimate your opponent, because the most prized talents in this business are not rogue traders, they are established veterans with more than enough capital to trade by themselve already bringing home six figures (aka Candletrader), and at this point I simply don't feel Worldco has enough perks to battle Echo for this type of talents. This is not to say that we can not attract all-star players or can not develop all-star players of our own. It is just that whenever I deal with someone from Andover/Schonfeld/Generic/ETG/Hold Brothers, I have this absolute confidence that I will bag that talent for Worldco, provided that they walk through our doors. That aura of confidence is not there when I deal with Echo guys.
With me at the point however, once I have a veteran team I should have a lot more creative freedom, and I will make the wrong things right. One day, if I get that far, I will know that I have proven myself as a true leader when I can attract someone already making 70-80K a year from Bright/Echo.
Let's put it this way, I wish Worldco ran their business with a clear cut formula instead of "everyone's situation is different". I try my hardest to let the candidates know what they can expect before they come in for the interview, but being a straight shooter, I like the up front way of Echo, and it has certain qualities that Worldco and a lot of other firms will never match up to unless they make some serious changes to their business model.
As a matter of fact, as the highest compliment I can give to a firm, if I ever leave Worldco without blowing my account up (highly unlikely), I will be in Echo.
At the very least, they are the only firm that I know of that post their commission rates up front on their web page. Everyone will get the same rate, same equipment, and if you do this much volume, you get this much discount. Clear, simple and to the point for everyone to see. No dodging bullets, no empty promises, if they have sufficient capital and can survive this tough market climate, this will be a serious competitor to deal with at some point in time.
I know a serious threat when I see one, and I talked to our owner about this up and coming firm many times. Unfortunately being prop with the HUGE advantage of being able to take on people with little to no capital, I don't think he really cares. It is inevitable when a firms grows large, it no longer caters to individual needs (that said, being a team leader it is my job to cater to individual needs).
Never ever underestimate your opponent, because the most prized talents in this business are not rogue traders, they are established veterans with more than enough capital to trade by themselve already bringing home six figures (aka Candletrader), and at this point I simply don't feel Worldco has enough perks to battle Echo for this type of talents. This is not to say that we can not attract all-star players or can not develop all-star players of our own. It is just that whenever I deal with someone from Andover/Schonfeld/Generic/ETG/Hold Brothers, I have this absolute confidence that I will bag that talent for Worldco, provided that they walk through our doors. That aura of confidence is not there when I deal with Echo guys.
With me at the point however, once I have a veteran team I should have a lot more creative freedom, and I will make the wrong things right. One day, if I get that far, I will know that I have proven myself as a true leader when I can attract someone already making 70-80K a year from Bright/Echo.
Let's put it this way, I wish Worldco ran their business with a clear cut formula instead of "everyone's situation is different". I try my hardest to let the candidates know what they can expect before they come in for the interview, but being a straight shooter, I like the up front way of Echo, and it has certain qualities that Worldco and a lot of other firms will never match up to unless they make some serious changes to their business model.
As a matter of fact, as the highest compliment I can give to a firm, if I ever leave Worldco without blowing my account up (highly unlikely), I will be in Echo.
That's perfect don. Absolutely perfect. I honestly have no aversion to size. I feel that is the reason that I was able to make over 200% so far this year (don't wanna jinx it with 1 day left you know). My starndard starting position is 1k shares. If I have a hunch I fire it off. Don is right, if there's real money on the line, even if It's just a quarter point ($250). I still feel I focus better on the trade and can get a better "feel" as for the true direction. When I am more confident, that's when I come in there with 5-30k shares. I have tried before to watch a stock for 2 hours trying to find the best time to buy, and honestly, I am too distracted with other stuff on my screen (s) to get it right. That first k is vital. Even if I loose a point, it's not gonna ruin my day and definately not my week or month, but it gets me into the game and of the right mindset.
Once I feel confident, I have no problem throwing size around. I will often go in with 50-80% of my (trading) account. This account is only a smaller portion of my main account, and I don't mind taking large risk with it. I sweep all my gains out of my trading account each month into my main account. In my main account I just play value stocks as long term trades. I feel that size itself isn't ever an issue. My basic thought it so think of the downside that's possible. Say I want to risk 4k on an intraday trade, and I think I can get out -20c, then I have no problem with taking 20k shares. That is assuming that I am correct as to my possible slippage in getting out with market orders. My main concern is always my possible loss in moving size. I don't look to the possible gain ever, cause that will only get you into trouble. If the liquidity is only good enough to move 5k shares up or down 30c, then that's the case, and I won't take more stock if I only want to risk 1500 on a trade. I hope my ramblings make sense to people. Don't look to size, but don't fear it either. Buy as much as you can and still maintain your composure, and most importantly your risk/reward ratio without moving the stock too much.
Good job this year! Take your thinking one step further..and get past the "return on investment" method of calculating success.
If our traders put up $25K and make $250K / year are they getting 1000% ROI?? No, they are simply using the seed capital as a tool to work a job they love in which the upside is unlimited. Granted the use of capital is a big plus, but that is part of the game.
Don't screw it up on Monday!!
If our traders put up $25K and make $250K / year are they getting 1000% ROI?? No, they are simply using the seed capital as a tool to work a job they love in which the upside is unlimited. Granted the use of capital is a big plus, but that is part of the game.
Don't screw it up on Monday!!