Taking 410K to 4million by Year End 2010

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Neke,

I hold no illusion you’ll listen to me – but I’ll post my thoughts just the same

Reading over the last several pages– arguably the best, most competent traders – this site has to offer – are posting the same message

If you don’t see it…, if it isn’t registering…, then your ego is amuck and overshadowing your trader sensibilities…

Without exception they have your best interest at heart – it’s reflected in their message

Listen to them – Please…..

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At times we are prone to taking trading too personal – and it is at those times specifically we are most susceptible to doing ourselves the greatest damage

For once trading becomes personal – it is the hardest for us to step back – be objective – and dispassionately assess what we’re doing..., and the results our efforts are having…

Please step back – and objectively assess your results as of late…

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By the very nature of our business traders are a cut throat bunch – but we still have a heart – our heart aches when we see a colleague running headlong into blow up…

You’re not a bad trader – You’re simply trading badly – we all do on occasion – we’re only human

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imho

Even if by chance you recover without modifying your current trading approach – you’re going to be right back in this same situation at some point – it’s inevitable (one of the lessons I took away from Livermore)

Respectfully

RN
 
Quote from konviction:

How do we know if its Neke to blame or the market conditions? Last year his journal did very well. maybe this is just drawdown, and he'll come back and kill it next year...

IMO he does take a lot of risk, but I've read about traders in Trader Monthly that took huge risks, and made huge sums. I personally wouldnt be able to handle it.
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1. '09 was pretty much one straight line up from march lows. You lean the right way with leverage and you're liable to knock things out of the park. I don't know if you can blame market conditions today, but you can likely account for market conditions as a tailwind last year, even if neke is primarily an intraday trader.

2. To quote one market wizard, "There are old traders, and there are bold traders, but there are no old, bold traders." This is the intraday timeframe we're talking about here -- I've never heard of anyone who would increase their leverage based on the open profit of one daytrading position. Blaming volatility for losses is wrongheaded; like many others have mentioned neke is trying to trade a 500k account the same way he traded a 50k account -- you are MUCH more liable to have positions reverse against you the bigger the line you swing, as it is that much more difficult to enter, then exit those positions favorably.
 
Just out of curiosity Neke (or anyone who knows his system)...

Do you use even something as basic as S/R levels?

Do you use simple trend lines at all?

Your leverage example is ludicrous to say the least if even the most basic price action tools are used....
 
neke ,i don't know your age ,nor your history with wealth,but it's very common to shoot youself in the foot to allow your ego to regain control,if its never seen wealth before and has lost control of neke ,or any of us
 
Quote from ammo:

neke ,i don't know your age ,nor your history with wealth,but it's very common to shoot youself in the foot to allow your ego to regain control,if its never seen wealth before and has lost control of neke ,or any of us
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i don't think age is the issue here .. coz neke is not just fresh out of college 21 or 22. I know many good traders that are consistently making millions each year are in their 30+. I believe it's the Character and Attitude (ego) that play very important part in success trading or any fields that we chose to excel in ..

neke is a full-time Professional and part-time Daytrader?... i hope he can do well in both but it's not going to be easy! RN, JustDongIt, lescor, illiquid and ammo give out very good advices to neke and i hope he can at least try to listen to them.. like RN said - They have your best interest at heart.
 
Quote from Red_Ink_inc:

OK this is getting painful to watch.

As per your example, and I realize this is only an example. However it's one you chose as an example of how might operate.

Who in the Hell puts on 60% more size on a short when a stock has just fallen from 120 - 100 (a drop of 16.6%) and then let's it retrace 20 points (a move of 20%)?

I'll tell ya who. No professional trader that I know of but plenty of gamblers would.

Leverage is a very useful tool when used correctly. When used as recklessly as you use it, it leads to financial death. You do realize this is actual money you're flushing down the toilet right?

There's many people on this site who simply have no clue. I believe you actually have some talent. That's why watching you piss it away is so disappointing.
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Yes it was just an example to illustrate my point. Even if you do 102 to 100 to 102 (2%) there is still leverage handicap (much smaller, but compounded over scores of trades, it adds up to a significant draw-down when operating on leverage). Of course the moves doesn't have to be the same stock on the same day, and plenty of trend traders (not gamblers) can short a stock that is already down 2% (timeframe not specified).


Quote from Red_Ink_inc:

WRONG your losses are due to crap risk management.

You're batting .523 for the year and you're losing money. That's terrible risk management. You'd need to be over .800 to make any dough with your risk management. So sad. :(
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Leverage is of course part of risk management. So I see no basis for disagreement. Also when I say leverage, I am refering not to the total portofio size, but the percentage of account on a trade. Yes when you use heavy leverage (more than 100% account) on a trade it is inevitable you need much more than 50% batting to break-even. If the edge is there (say 70/30) it could increase the account speedily, otherwise it could batter the account, which has been the case this year. The onus is on me to size down. The original intention was to use big leverage when rare high r/r set-ups show up, but I haven't used it for those: it has been more of impulsive averaging down on mediocre set-ups.



Quote from lescor:

You've found a wordy way to say "I've been killed in the market because I trade with too much size", which is exactly what people have been warning you about going back to last year's journal. I wouldn't trade 1/10th your size with multiples of your account equity. Even your new and improved sizing rules are ludicrous. Just my opinion though, good luck.
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The initial size has never been a big problem for me. It is the averaging down that brings size to levels that shouldn't be. What I am trying to do is size down so after the initial entry, there will be no room for averaging down. I think my ability should be based on how good the initial entry is, not try to turn things around by averaging down: it has been impulsive and it has been a bleeder. My automated trades is currently at about $70K a trade (30% of account, 7.5% of DTBP), my discretionary will be set to about $140K (66% of account, 16.5% of DTBP) for stocks. I do not make many trades a week (average 25 trades roughly evenly split between auto and discretionary, probably average of 3 positions open at any time), so dropping to 1/10 of the size like you suggested would be like ceasing trading :)
 
Neke

I'll refrain from beating the point to death, but please take a step back and reassess everything. A lot of good traders have given you golden advice on here, so as Redneck said, please listen to them. It's the same advice you'll get from any Head of Trading Operations at any firm, except it'll be more of any order than an advice.

You don't come off as a clueless trader, so please do the smart thing and reassess.

I continue to root for you. Best of Luck.

EKO
 
Weekly Update for week 33/50 ended 08/28/2010

Positive week, up 9.3K (4.4%).

Small size plays all week, with decent win rate. Should have capped it up with a stellar day on Friday but it was not to be. Bought 70 SPYSEP 104 Calls @ 2.80 when the market dipped after 10am, but quickly decided to sell when the index rebounded a bit @ 2.98. Made 1.3K, and watched the market tear away all day. Easily left 7K on the table.

Will keep focused on sticking to the sizing discipline for my discretionary trades (Max $150K for stocks, and contracts worth $750K for options).




Code: 
Opening Balance:                	213,404
Net gain for the week 		          9,313
------------------------------------------------
Net Balance:                   		222,717

Number of Trades	            	 16
Number of Profitable Trades    	    	 11


Since Inception of Thread   01/10/2010 - 08/28/2010

Opening Balance:                   	410,000
Net loss(Less Margin Interest)		187,283 (Down 46%)
------------------------------------------------
Net Balance				222,717

Number of Trades	           	1001
Number of Profitable Trades        	 529


BREAK-DOWN BY AUTOMATED/DISCRETIONARY

		Number    P/L          Best Gainer	Worst Loser

AUTO             5       3,314.90      2,685.40    	 -1,121.70       
DISCR           11       5,997.90      3,081.40    	 -1,592.30        


TOP/BOTTOM DISCRETIONARY TRADES

TICKER			ENTRY DATE/TIME		EXIT DATE/TIME		QTY	PURCHASE AMT	SOLD AMT	GAIN/LOSS	TYPE


SPYSEP182010105.0CALL	2010-08-25-09-49-42	2010-08-25-15-39-34	5100	12801		15963		3081.4		SPY CALL
--------------------------------------------------------
SPYSEP182010106.0PUT	2010-08-24-10-30-20	2010-08-24-11-29-43	6000	18540		17040		-1592.3		SPY CALL

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