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My simple, yet profitable trading strategy
- Thread starter traderich
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Hey Bob welcome aboard! lol.
You are correct that averaging $200/day for risking $200k does not sound good.
The thing to realize is that the $200/day is the average over many big days and all the crappy days too. And, as I said before its just a simple method with no real genius analysis or anything.
The other thing to realize is that I am only putting up 50k, so to make 200/day with 50k capital is not that bad. Look at it this way, 200/day is 1000/wk, or about 50k/year. Not too sure, but I'd be willing to bet that not too many folks make 100% a year return! Do you?
Also, this is just a slight edge. There is nothing to say that you cannot increase the lot size to 1500 or 2000 shares and also switch brokers and save on commissions.
This is just a starting point. For many folks including myself, its nice to have a starting point that is shows some promise rather than just winging it out there with trades you think are correct!
You are correct that averaging $200/day for risking $200k does not sound good.
The thing to realize is that the $200/day is the average over many big days and all the crappy days too. And, as I said before its just a simple method with no real genius analysis or anything.
The other thing to realize is that I am only putting up 50k, so to make 200/day with 50k capital is not that bad. Look at it this way, 200/day is 1000/wk, or about 50k/year. Not too sure, but I'd be willing to bet that not too many folks make 100% a year return! Do you?
Also, this is just a slight edge. There is nothing to say that you cannot increase the lot size to 1500 or 2000 shares and also switch brokers and save on commissions.
This is just a starting point. For many folks including myself, its nice to have a starting point that is shows some promise rather than just winging it out there with trades you think are correct!
traderick,
day results
EL +850
GBX -90
SID +680
PPC -1030
SIE +2330
LEV +110
TOTAL $2822
out of a porfolio worth (on paper) around 191 k
not bad for the day, including PPC that at 10 am was out of the top %gains... now if I had only traded with money (and not on paper) it would have been much better
i closed the account at 3:40 just to see what happends in the last 20 mintues of trading ....
cheers
day results
EL +850
GBX -90
SID +680
PPC -1030
SIE +2330
LEV +110
TOTAL $2822
out of a porfolio worth (on paper) around 191 k
not bad for the day, including PPC that at 10 am was out of the top %gains... now if I had only traded with money (and not on paper) it would have been much better
i closed the account at 3:40 just to see what happends in the last 20 mintues of trading ....
cheers
TradeRich, Dustin:
I can't recall if you said how it relates to the overall market but I think it'll be affect by the general market direction.
The top gainers might be even bigger gainers on the UP date on NY, Nasd but might modest or flat if overall market is flat or down.
What do you say? What were your observastations over the years.
I can't recall if you said how it relates to the overall market but I think it'll be affect by the general market direction.
The top gainers might be even bigger gainers on the UP date on NY, Nasd but might modest or flat if overall market is flat or down.
What do you say? What were your observastations over the years.
TraderRich...trying to read this on a blackberry...sorry if I missed it, but are you posting to 2007 Trader P/L? Would be a good place to log your day's action.
TraderRich,
This is very interesting. Did you think about trading options instead of stocks? Of course you would have to filter your stocks to the ones who have options, but it would probably increase your results substantially as it looks like you make most of your money from the big winners.
It is very difficult to daytrade options because of spillage but this could be the exception as these stocks are the big movers.
This is very interesting. Did you think about trading options instead of stocks? Of course you would have to filter your stocks to the ones who have options, but it would probably increase your results substantially as it looks like you make most of your money from the big winners.
It is very difficult to daytrade options because of spillage but this could be the exception as these stocks are the big movers.
Quote from candeo:
TraderRich,
This is very interesting. Did you think about trading options instead of stocks? Of course you would have to filter your stocks to the ones who have options, but it would probably increase your results substantially as it looks like you make most of your money from the big winners.
It is very difficult to daytrade options because of spillage but this could be the exception as these stocks are the big movers.
Don't we all wished options worked this way. Delta of one and lower potential volatility risk trading the underlying in this case.
Quote from jimclark:
TradeRich, Dustin:
I can't recall if you said how it relates to the overall market but I think it'll be affect by the general market direction.
The top gainers might be even bigger gainers on the UP date on NY, Nasd but might modest or flat if overall market is flat or down.
What do you say? What were your observastations over the years.
In my opinion it does affect results significantly, especially the way Rich is trading only long. Overall I'm about 50/50 long/short which I prefer.
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