Taking 76K to 500K by Year End

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Quote from verbotenlaandia:

Neke, you are a wildman! Can you disclose your average risk per trade as well as some of the indicators you follow?
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In general I can use a maximum of 90% of account value for an intra-day trade. Overnight positions are somewhat less. Even then it depends on the volatility of the stock. Very non-volatile intra-day positions I could use twice that (like MTB in this week's examples), while others like RACK in the example I would commit less. I have no hard-and-fast formulas.

Indicators? I generally do not use any technical indicators for my discretionary trades, just raw gut-feeling from my experience which looks at a whole lot of parameters: the gravity of the news moving the stock, the fundamentals, the surprise factor etc. My automated trades use very simple technical parameters plus a few fundamental criteria, all quantitatively defined.
 
Hi, Good luck in your trades.
I trade only one stock QQQQ and its derivatives and options, mostly.
I am interested in, How you choose your stocks? Scan, news source, internet chat ?

In your non discretionary trade what indicators you use?
TIA.
 
Quote from neke:

In general I can use a maximum of 90% of account value for an intra-day trade. Overnight positions are somewhat less. Even then it depends on the volatility of the stock. Very non-volatile intra-day positions I could use twice that (like MTB in this week's examples), while others like RACK in the example I would commit less. I have no hard-and-fast formulas.

Indicators? I generally do not use any technical indicators for my discretionary trades, just raw gut-feeling from my experience which looks at a whole lot of parameters: the gravity of the news moving the stock, the fundamentals, the surprise factor etc. My automated trades use very simple technical parameters plus a few fundamental criteria, all quantitatively defined.
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2 Important points as far as risk as I see it..

On a weekly/monthly basis you must figure out the maximum drawdown you can accept.
Then take that amount and divide it by the total risk of each trade
Total risk of trade being total $ loss if stop is hit.
From there you can play with the total # of trades and the share/contract size allowed before the maximum drawdown allowed is reached.
Generally unless you are counter trend trading on a large time frame the larger stop width will increase your win %.
The exception to this larger timeframe trend is with individual stocks and news the trend even on a large time frame could reverse fairly easily.
I trade ES/ER where the trends are more reliable.
Never go crazy intraday constantly looking for that reversal after losing and losing and losing.
I think we all realize its that stupid behavior that kills the account ,and if stupid behavior that gets rewarded with a win or stratch is probably the most dangerous thing to ones account..
Pick the spot that looks like the entry ,give it enough room and leave it,anything else is chasing a falling knife.
Enjoying your journal.
 
I think this journal is absolutely crazy

just a guy that gives you all the roller coaster figures at the end of each week without giving you an idea of what he`s doing.
goes to meetings with a big shaky trade on without stop loss I suppose.
dont know what his kick is.
 
I think this journal is absolutely crazy

just a guy that gives you all the roller coaster figures at the end of each week without giving you an idea of what he`s doing.
goes to meetings with a big shaky trade on without stop loss I suppose.
does that sound like somebody who`s trading for years?
come on!

dont know what his kick is.
 
Below is the expected rate of growth of balance on my account to attain the target of 500K, starting from the 76K at the start of the thread (2007-02-25). The implied rate is 4.3548% per week without withdrawals. At the end of week six, the expected balance was $98971,while the actual balance came to $119236, showing I am ahead of target. Each week, I shall include a note whether I am ahead of target or behind. I shall try and keep withdrawals low so as not to impact the attainment of the target.

Code: 
Week	End Date	Opening Bal.	Closing Bal.
1	2007-03-02	76636		79973
2	2007-03-09	79973		83456
3	2007-03-16	83456		87090
4	2007-03-23	87090		90883
5	2007-03-30	90883		94841
6	2007-04-06	94841		98971
7	2007-04-13	98971		103281
8	2007-04-20	103281		107779
9	2007-04-27	107779		112472
10	2007-05-04	112472		117370
11	2007-05-11	117370		122481
12	2007-05-18	122481		127815
13	2007-05-25	127815		133381
14	2007-06-01	133381		139190
15	2007-06-08	139190		145251
16	2007-06-15	145251		151576
17	2007-06-22	151576		158177
18	2007-06-29	158177		165066
19	2007-07-06	165066		172254
20	2007-07-13	172254		179755
21	2007-07-20	179755		187583
22	2007-07-27	187583		195752
23	2007-08-03	195752		204277
24	2007-08-10	204277		213172
25	2007-08-17	213172		222456
26	2007-08-24	222456		232143
27	2007-08-31	232143		242253
28	2007-09-07	242253		252802
29	2007-09-14	252802		263811
30	2007-09-21	263811		275300
31	2007-09-28	275300		287288
32	2007-10-05	287288		299799
33	2007-10-12	299799		312855
34	2007-10-19	312855		326479
35	2007-10-26	326479		340697
36	2007-11-02	340697		355533
37	2007-11-09	355533		371016
38	2007-11-16	371016		387173
39	2007-11-23	387173		404034
40	2007-11-30	404034		421629
41	2007-12-07	421629		439990
42	2007-12-14	439990		459150
43	2007-12-21	459150		479145
44	2007-12-28	479145		500011
 
Thanks for sharing your money management with us.

Hopefully someone can actually get something of value from it, but don't be surprised if they don't post it.

When people get something of value, they usually run with it.

JJ
 
Weekly Update for week 7 ended 4/13/2007

Lots of frenetic trading, but not much to show for it. Began on sad note on Monday losing 10K shorting the biotech craze (shorted 9000 NUVO @ 4.46 covered at 5.16 for a loss of more than 6K, fortunately shorted 4300 of the same stock Tuesday at 6.40 covered at 5.60 for a modest gain. Regret not shorting more and not waiting till Wednesday when that stock tanked to 4.40). Altogether my discretionary trades lost more than 8K for the week, while my automated made 14K, to give me a net of more than 5K.

Code: 
Balance B/F:                   119,236
Profit for the week              5,718
-------------------------------------
Balance C/F:                   124,954
Number of Trades	            34
Number of Profitable Trades    	    21

Since Inception of Thread   2/25/2007 - 4/13/2007

Balance B/F:            	76,636
Net Gain (Less Margin Interest)	61,318
Cash Withdrawal		       -13,000
-------------------------------------
Balance C/F:                   124,954
Number of Trades	           174
Number of Profitable Trades        113

Expected Balance at this time to be on track for Year-End Target : 
			       103,281
Status:			       Ahead of Target

Top/Bottom Discretionary Trades for the week

TICKER,ENTRYDATETIME,EXITDATETIME,QTY,PURCHASE AMOUNT, SOLD AMOUNT,NET GAIN,TYPE
NUVO,2007-04-09 08:16:20,2007-04-09 09:46:33,9000,46170,39940,-6260.6,SHORT
SILC,2007-04-09 10:18:58,2007-04-10 11:22:27,4000,85579.19,90938.38,5307.6,SHORT
 

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