My account value reaches $600,000 for the first time; launching incubator hedge fund

[BIDUbandit]

?

 

[newwurldmn]

Quote from dwpeters:

Well drawdowns are a fact of life for traders, but a hedge fund that has a drawdown 3.5 worse than the market is going to have trouble attracting money. But what do I know, Victor Niederhoffer lost 100% and was able to attract money for another fund (which did well for a few years before it lost 75% and was closed).

Lazar, sorry to hear that you had such a setback. My advise is the same as it was. If you can find stocks that outperform on the long side, you should be able to find stocks that underperform as well, and then you can short these. Returns will not be as spectacular on the upside or the downside but they can be more reliable. Isn't that what investors want? I know it's what I want - that's why I trade.

Apparently the LTCM guys have done the same thing over and over again.

My understanding is that while Niederhoffer lost 100%, his investors ended up okay. While he was making money, he was returning all the gains back to them so they might have lost their "principal" they reaped massive coupons which made up for it.

 

[bbk]

Quote from Bowgett:

This is not track record. This is bragging

I started with 26K in Oct. 2008. I have 850k now after paying 150k tax for the last two years. I have to pay about 200k tax this year for the profit I made this year so far. haha

 

[falconview]

I find this interesting. As a small retail trader, option indexes this year, can´t say I´ve made consistantly any money yet. Still dithering around trying things. One point though, if I do show a profit for the end of the year, how do I calculate the tax on option trading profit.

I´ve read 30% to 40%, but never ever found a definitive number from anybody on the internet. Could you be so kind as to advise?
Congratulations on doing something right though That is wonderful news.

 

[bbk]

Quote from falconview:

I find this interesting. As a small retail trader, option indexes this year, can´t say I´ve made consistantly any money yet. Still dithering around trying things. One point though, if I do show a profit for the end of the year, how do I calculate the tax on option trading profit.

I´ve read 30% to 40%, but never ever found a definitive number from anybody on the internet. Could you be so kind as to advise?
Congratulations on doing something right though That is wonderful news.

Short-term gain is taxed as regular income. Long-term gain is fixed rate 15%. If you trade index options which can be treated as commodities, it should be 40% short term and 60% long term.

 

[pattern43]

Don't start any type of fund to further shed blood and destroy other innocent traders' accounts. Those who tread on this path (personal trading and corporate hedge funds alike) walk towards perdition.

 

[falconview]

Thankyou for the 40% number BBK.

 

[virtualmoney]

Quote from Peternam:
What is your track record ?

I bought lottery tickets consistently $50 a month for 6 years. I won 1.5 Mil last month.
I would consider my % return track record quite good but I do not brag about it.
Are there any well known lottery hedge fund globally?

 

[falconview]

Heck let him brag. I would too!

Big congratulations in a very tough racket.

 

[7out]

Quote from lazar206:

MONTHLY UPDATE AUGUST 31

• Personal account values as of today’s close is $549,593 The account value in the beginning of the 2011 was 569k, a loss of around 19.5k year to date which is around 3.5% loss year to date. Below I have also included the monthly results since I started this thread.
Value as of,
Today, Agust 31 -$549,593
July 29 -$680,626
June 30-$728,489
May 31 -$732,387.00
April 30 -$711,869.00
March 31 -$645,827.00
February 28 -$616,668.00
End of 2010 -$569K.
• Incubator hedge fund: values as of today’s close was $96,747 which is a $18,353 loss since fund inception (April 1st). (The total amount includes the 100k initial deposit plus the 3k "monthly" deposits.)
Value as of
July 29 , 111,519
June 30, 111,824
May 31 was 110,231
April 30 was $107,030

I hope to have a longer post next week discussing some strategy and performance and "some strategy adjustments I will be doing."
Looking forward for your comments and advice.

Anyone know what happenned to this guy ???? Wondering how he weathered the summer storms and if he continued trading. Seems weird that comments just die off and no body asks this question.