My job is holding me back

[deaddog]

It isn't about the return rate, why do you guys view things like this? Someone could have a 10000000% return rate who bought bitcoin at the lows and sold at the highs. Or maybe they went all in with their account and can show you a 10000% return rate this year. What does this have to do with day trading in a consistent manner? absolutely nothing. Return rate doesn't necessarily mean anything in a good or bad way, all that matters is your risk of failure.

OK Let's try a different approach. Are you as consistant as you would like to be?

You state that if a trader has a proper edge, they should be able to easily make 6k per day with a 100k account. To someone who is just starting that is a pretty lofty goal. What I'm wondering is if you have developed the proper edge and are achieving that kind of result or if it's just a theory that hasn't been proven yet.

oops!! Missed a post where you answered that question!!

 

[Concinnity]

Return rate is the ONLY way to measure how well or poorly a trader/investor is doing. All that matters is what was your trading account balance on jan 1,2022 and what is it today. Do you think the US Investing Championship uses "risk of failure" to measure how well those traders/investors are doing?

I don't concern myself with "championships" man. Do not mean that in a smart way either. I am using math to determine how aggressively I can trade based on my strategy, stop loss and r/r. That's all that concerns me is the math.

 

[Concinnity]

OK Let's try a different approach. Are you as consistant as you would like to be?

You state that if a trader has a proper edge, they should be able to easily make 6k per day with a 100k account. To someone who is just starting that is a pretty lofty goal. What I'm wondering is if you have developed the proper edge and are achieving that kind of result or if it's just a theory that hasn't been proven yet.

I have the edge for 1-2k a day consistently on 50k I know that. So, I know it's good. Don't completely know if it's just good or really good. I'll find out.

 

[deaddog]

I have the edge for 1-2k a day consistently on 50k I know that. So, I know it's good. Don't completely know if it's just good or really good. I'll find out.

I'm impressed!! Hope it holds out. All the best!

 

[Concinnity]

Return rate is the ONLY way to measure how well or poorly a trader/investor is doing. All that matters is what was your trading account balance on jan 1,2022 and what is it today. Do you think the US Investing Championship uses "risk of failure" to measure how well those traders/investors are doing?

I mention actual math, you mention return rate(which can be arbitrary and irrelevant as I explained) and you mention a championship challenge.

It's better if you could attack my math and tell me how that is wrong. Otherwise what does it matter what language we're speaking if the math is solid?

 

[tomkat22]

I mention actual math, you mention return rate(which can be arbitrary and irrelevant as I explained) and you mention a championship challenge.

It's better if you could attack my math and tell me how that is wrong. Otherwise what does it matter what language we're speaking if the math is solid?

If a hedge fund reached out to you tomorow and wanted to hire you with a starting salary of 300k but first they needed to see how well or poorly you did in 2022 how are you going to show them?

 

[taowave]

I wouksnt call Buffet a swing trader...

Value investor yes,Swing trader No..

I'm on the Kulmagi bandwagon

I did not see it mentioned, but there is a huge difference between Day Trading
and Swing Trading. OP did not actually specify, but seems likely he is a Day Trader.

I find that Swing Trading is much less stressful, but may take time.
And Swing trading requires capital.
The most famous Swing Trader of our time is Warren Buffett.
He started from $0.00.
Can be done, but the OP should know the difference.

 

[Concinnity]

If a hedge fund reached out to you tomorow and wanted to hire you with a starting salary of 300k but first they needed to see how well or poorly you did in 2022 how are you going to show them?

Some hedge funds don't necessarily even require one year results if you have connections, that's neither here nor there though. If I have yearly results sure I'll show them and it will include my rate of return. Obviously they will be looking at both things. This is turning into such a pointless debate now.

Obviously they are both important measurements. But my point is also about mentality, lots of people mention rate of return, the more important part is how you are getting that return. That is my main point. If you focus on the process and risk management, the growth will come. Focus on your return rate is not a good mentality. Let's just say for me personally than as to avoid debate. When I focus on points I have to risk to make money. I do much better as opposed to thinking about the money.

 

[taowave]

I see where you are going,but that is not how hedge funds look at it..

Decent metric,but a small peice to the puzzle...

Go look for money (for shits and giggle),and the first 2 questions asked will be rate of return and worst drawdown( maybe peak to trough)...

It isn't about the return rate, why do you guys view things like this? Someone could have a 10000000% return rate who bought bitcoin at the lows and sold at the highs. Or maybe they went all in with their account and can show you a 10000% return rate this year. What does this have to do with day trading in a consistent manner? absolutely nothing. Return rate doesn't necessarily mean anything in a good or bad way, all that matters is your risk of failure.

It's about failure rate. Not rate of return. If I have 500 points of NQ risk and risk 8 points as a stop loss I have roughly 62 trade before failure. If my win rate is even 58% and my R/R even 1 risk to 2 reward, than my risk of failure is extremely low. That's how you get consistent and sustainable exponential gains. That's day trading.

I am not talking about having a large account, trading relative small size, averaging down, using time and account size as my edge. More power to you guys that have the ability to do that, you've earned it. But again that is the lowest hanging fruit when it comes to an edge in trading and it's pretty difficult to consistently compound your money that way, maybe that is why so many people here view things in a manner of "return rate" as opposed to "risk of failure".

 

[tomkat22]

Some hedge funds don't necessarily even require one year results if you have connections, that's neither here nor there though. If I have yearly results sure I'll show them and it will include my rate of return. Obviously they will be looking at both things. This is turning into such a pointless debate now.

Obviously they are both important measurements. But my point is also about mentality, lots of people mention rate of return, the more important part is how you are getting that return. That is my main point. If you focus on the process and risk management, the growth will come. Focus on your return rate is not a good mentality. Let's just say for me personally than as to avoid debate. When I focus on points I have to risk to make money. I do much better as opposed to thinking about the money.

That's a bizarre way of looking at it,but hey ,you do you.