Popular daytrading account size

deaddog said:
Sound like the other reason traders fail. Not having a trading plan or not following the plan.
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Yes sir deaddog, You got that part right.

If you do not know how and why and when to Enter and Exit a trade day-to-day, everyday of the year, trading will be very complex for you.

Before I take a trade, I know my risk and I know where I my stop loss will be. And I know how to exit for a profit.

Yes, it is alot of work knowing all that before entry in the heat of the moment. But its better than the Shoulda Coulda Woulda after making a mistake starring at loss too.
 
Evermore2017 said:
I have seen that $100K is a popular/goal/desirable account size among stock daytraders, right? why?
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Evermore2017,

Take the $100K and subtract $98K from it. This leaves you with $2K. Put the $98K in savings.

Use the $2K to trade stocks. Risk 1% or $20 per trade.

Do this until your account balance is $5K.

After that you will know for certain, if you ready to risk $100K stock trading.
 
hafez50 said:
Its funny you say that . In 2001-2002 i had of my biggest yr's ever in a super bear mkt going long 90% of the time . I find it much easier to trade long in bear mkt s as the rally's are incredible .
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hafez50,

A new trader will not know what a bear market or super bear market means day to day.
 
SimpleMeLike said:
hafez50,

A new trader will not know what a bear market or super bear market means day to day.
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I've trained or known 100's of traders over 31 yrs and every single one me included had huge almost career ending loses going short at one time or another . Seriously no novice trader should ever go short and most seasoned traders should not be shorting more than 10-20% of their trades short . Imho on what i've seen over 3 decades .
 
hafez50 said:
I've trained or known 100's of traders over 31 yrs and every single one me included had huge almost career ending loses going short at one time or another . Seriously no novice trader should ever go short and most seasoned traders should not be shorting more than 10-20% of their trades short . Imho on what i've seen over 3 decades .
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hafez50,

What timeframe chart are you trading regarding this discussion?
 
SimpleMeLike said:
hafez50,

What timeframe chart are you trading regarding this discussion?
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I honestly don't use charts as i almost have a photographic memory . Depending on the volatility my trades are usually 5 min's to a few hrs max . Nothing wrong with shorting with defined stops in if your an experienced trader . Unfortunately most newbie traders hate to take loses and as we all know a short can run to infinity ending the career of a small trader .
 
hafez50 said:
I honestly don't use charts as i almost have a photographic memory . Depending on the volatility my trades are usually 5 min's to a few hrs max . Nothing wrong with shorting with defined stops in if your an experienced trader . Unfortunately most newbie traders hate to take loses and as we all know a short can run to infinity ending the career of a small trader .
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hafez50,


A long can also run to infinity ending the career of a trader as well.

A newbie trader needs to understand the math behind taking a loss. They need to understand the probability over a series of trades (100 to 500). Out of that 500 trades, they will not be all winners.

A loss is guaranteed happen and win is guranteed to happen.

The trader must be happy with the loss AND be happy with the win.

If I was mentoring a trader, the first thing I would do is have the trader

1. Flip a coin 200 times.
2. Open a spreadsheet.
3. If heads, write a loss of $200.
4. If tails, write a win of $400.
5. After flipping 200 times and recording the results, calculate the winning/losing performance and expectancy.

From this exercise the trader will see and feel how important the math is in trading.
 
SimpleMeLike said:
hafez50,


A long can also run to infinity ending the career of a trader as well.

A newbie trader needs to understand the math behind taking a loss. They need to understand the probability over a series of trades (100 to 500). Out of that 500 trades, they will not be all winners.

A loss is guaranteed happen and win is guranteed to happen.

The trader must be happy with the loss AND be happy with the win.

If I was mentoring a trader, the first thing I would do is have the trader

1. Flip a coin 200 times.
2. Open a spreadsheet.
3. If heads, write a loss of $200.
4. If tails, write a win of $400.
5. After flipping 200 times and recording the results, calculate the winning/losing performance and expectancy.

From this exercise the trader will see and feel how important the math is in trading.
More...

To extend coin flip exercise, I'd have them:

1. Tell them they'll have to make 2 decisions, as in trading
2. Bet heads vs tails (like long vs short)
3. If they win, what do they do next? Choices = cash out, or try to double/let it ride
4. If they lose do they take the loss and move on (smart) or let it ride (add to loser, wrong)
 
SimpleMeLike said:
hafez50,
***
If I was mentoring a trader, the first thing I would do is have the trader

1. Flip a coin 200 times.
2. Open a spreadsheet.
3. If heads, write a loss of $200.
4. If tails, write a win of $400.
5. After flipping 200 times and recording the results, calculate the winning/losing performance and expectancy.

From this exercise the trader will see and feel how important the math is in trading.
More...
KCalhoun said:
To extend coin flip exercise, I'd have them:

1. Tell them they'll have to make 2 decisions, as in trading
2. Bet heads vs tails (like long vs short)
3. If they win, what do they do next? Choices = cash out, or try to double/let it ride
4. If they lose do they take the loss and move on (smart) or let it ride (add to loser, wrong)
More...

You boys are just cannon fodder.
 
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