My goal is 15% a year... so what strategy?
- Thread starter SuperBanda
- Start date
I agree with the gist of your post completely, but I would have to say that if you are making just 15% on certain futures markets full time, it's not worth the bother. You MUST be far far greedier when it comes to levered markets, otherwise, you are doing something wrong. In certain markets, no one succeeds "just" making a few hundred dollars a day, or 20% a year etc (again, I'm talking about small individual accounts here). When you are trading a size that has absolutely no impact whatsoever on a high leverage market, aim for those triple digit returns, you will need to in order to survive.
Yeah I agree. I guess my point was that the poster was assuming one instrument was predisposed or easier to make 15% v. the others lol...
That's the thing, it's MUCH easier to get LUCKY and make 15, 25, even 50% in a market like currencies or metals (and I'm talking one month, even one week LOL). The key is knowing that if you're using all the leverage a market offers, what might seem good on paper relative to other markets (equities) could actually be no better than random when you are using 100:1 leverage. Confirmation of this usually comes a few weeks later with a complete account blowout
Quote from SuperBanda:
I am targeting to make a 15% a year on average (some years maybe 10%, other 20%...).
What instrument are you suggesting to trade (options, futures, stocks...)?
What strategy (covered calls, trend following, swing trading ...)?
All your inputs are welcome.
If Drug trafficking is out of you reality (I would not recommend this route)...I would suggest you learn how to trade (you pick the strategy, not random traders on a damn chat room) and worry about the 10, 15, and 20% gains later.
If you enter this game b/c thats where the "big bucks" are, you will be raped and left for dead just like every other new trader who enters the game without learning the rules....Then again, new blood is the easiest to swallow...so by all means jump on in and start scooping up that easy 20%!!!!
p.s.
I would be happy to give you a lists of stocks that I would like you to trade....oh yeah, please buy lots of breakouts!!
This guy is asking a legit question and getting some bullshit.
Phil, you should know better because you're in some position to offer quality advice. Yes Coach, some instruments CLEARLY offer a better return than others. Day trading futures offers a NEGATIVE return for 95% of participants so that's out.
On the other hand there's junk bonds that pay close to 15% without a guy having to know what the hell a CCI divergence is. Those bonds obviously have default risk though. Similarly there's always opportunities for leveraged yield curve trades whether in the fixed income markets themselves or in FX. Same story though. There's risk of sudden changes in relationships. Not life or death if one's trading 1-1 but these strats only offer sexy returns if the heat's turned up a little. Hence most inherent high yield plays are akin to selling an implied put in the underlying. You pick up great premo until your capital suddenly vanishes in one quick move.
Rather than talk about the random performance of speculation or stock picking, methods that are directional dependant, a more worthwhile discussion would be of esoteric fixed income trades along with premium selling ideas.
Phil, you should know better because you're in some position to offer quality advice. Yes Coach, some instruments CLEARLY offer a better return than others. Day trading futures offers a NEGATIVE return for 95% of participants so that's out.
On the other hand there's junk bonds that pay close to 15% without a guy having to know what the hell a CCI divergence is. Those bonds obviously have default risk though. Similarly there's always opportunities for leveraged yield curve trades whether in the fixed income markets themselves or in FX. Same story though. There's risk of sudden changes in relationships. Not life or death if one's trading 1-1 but these strats only offer sexy returns if the heat's turned up a little. Hence most inherent high yield plays are akin to selling an implied put in the underlying. You pick up great premo until your capital suddenly vanishes in one quick move.
Rather than talk about the random performance of speculation or stock picking, methods that are directional dependant, a more worthwhile discussion would be of esoteric fixed income trades along with premium selling ideas.