Taking 76K to 500K by Year End

johnpinochet · Jun 3, 2007

Quote from Futuresscalper:

Neke you can do it I posted this on another thread it applies here and its just my feeling, but the only thing I didnt disclose is what I started with and what I trade. I started with 20k got it to 75 and I was also taking money out throughout all of this. I also only trade and scalp energy futures, I have a strategy that works for me and wont get into because it would just be to much to post, but like I say below 500-1000 a day and Im a happy camper!
I have been scrolling through these posts for sometime now and have never registered until about a month or so ago. The reason I use to browse was to look at software reviews, broker reviews etc. And I would eventually look for other info on specific news sites etc. But let me tell you, it seems this site is the most negative thing I have seen. I trade futures full time with a 75k account and make 500-1000 dollars a day bar none that is my average when stopped or not for the last three years now. I have been averaging about 150k a year. And I do it quite easily so I laugh at all this analysis and the bullshit posted on this site. Because I think it is quite easy to make this amount if you are disciplined. I wake up at 5 am and begin, as soon as Im up 500 or so I turn the computer off and do whatever else I want to do that day that is it!! Its that easy, but you know what? Most guys cant shut it off thats why they lose. The market gives you a chance to make that "little" money that I make as long your willing to accept that and do other things in life. I come from a place that knows to get a job somewhere making a 100k with a masters youll work your ass off so when Im up 500- even 400 sometimes I shut it off and smile because I know no one will pay me this amount in the work force with this freedom. Many of you will think Im small change, because we seem to have many big players here LOL! But its all discipline and all the charting and books and posting in the world cant teach that. It comes down to just accepting a certain level of profit and shutting off and being content. That is why there is a 95 percent failure rate.

Adios

Your post is a keeper. You detail a key factor in succeeding at this. Perhaps even the only key factor.

Thanks!

neke · Jun 3, 2007

Quote from mschey:

Neke,

My best advice to you, stop this journal, get back to basics, focus on your core strategies, and get yourself back to profitability.

A journal, IME, acts as a powerful magnifier. When you are trading well, it can boost your profits, when you are trading poorly, it will help you lose money faster. When you are being watched and monitored, you are under pressure to perform. When your system is doing well, you do much better, because, in general, you are being more aggressive, you are trading bigger size, etc. However, when you are doing poorly, the pressure to perform is even greater. As a result, you often take mediocre trades, revenge trade, etc.

I have been through many ups and downs as a trader, I'm still here and still profitable! I attribute this to the fact that when trading is tough, and I'm not making money, or not making the money I want to make, I work harder, I go back to basics, focus on my only the best of my strategies, and only size up when I regain profitability. Once I am trading well, I step things up, and take my trading to new levels.

Step down, regain your confidence and profitability, then step back up when you know you are on track. And don't be afraid to dump this journal, trading is your business, put your business first.

Good luck!

Thanks for the advice, mschey. However, I think a journal makes me realise my wrongdoings faster, not magnify them. The sense of having a goal, and having people watch me on that journey, keeps me constantly evaluating what I am doing on a weekly basis. The only pressure I feel is the sense of urgency to automate my core strategies and reduce the discretionary aspects to a bare minimum. Things like determining optimum leverage for a trade (based on volatility or others), determining stop loss or exiting non-performing trades, doing preliminary checks to make sure the trade is proper (not a revenge trade, no chasing). If I develop my trading platform those are things the computer would do and reject an order when it does not conform to some simple rules.

michaelscott · Jun 3, 2007

Neke,

I sure wish I could say a few encouraging words, but all I have is discouraging words.

These high margin/high risk lotto ticket trades will get you into trouble. Your lucky you only lost 16k, it could have been a lot worse.

I kindly ask, why not re-think this strategy?

Code:
Quote from neke:

Weekly Update for week 14 ended 06/01/2007

Pathetic. My resolve to hold to rules lasted less than two weeks. Really bad trading lately. Shorted 2000 JOYG on Tuesday at 49.20 on cursory look at earnings release, added 2000 more at 50.80 and covered at 53.80. Total loss nearly 16K. Need to do a better job of analysis before acting. Same day chased NOVC on the short side on the way down, and suffered a painful covering at a bounce towards market close. My discretionary trades have lately turned into impulse trading.

Automated trades were at break-even this week. So since inception of thread, discretionary is now barely positive, while automatic has made about 33K. Spending a lot of time now trying to automate more strategies, and reducing discretionary trading to bare minimum. Ideally I should only do discretionary trade swing-style on stocks or options, having more time to look before I leap. Trying to make instant decision on stocks at work is not a good idea: there is just not the time to do a better job. Hopefully by mid to end June should have added two more strategies to my automatic arsenal: right now I have only one.

Code:

Balance B/F: 110,951 Loss for the week -19,385 ------------------------------------------------ Balance C/F: 91,566 Number of Trades 16 Number of Profitable Trades 6 Since Inception of Thread 2/25/2007 - 06/01/2007 Balance B/F: 76,636 Net Gain (Less Margin Interest) 33,930 Cash Withdrawal -19,000 ------------------------------------------------ Balance C/F: 91,566 Number of Trades 368 Number of Profitable Trades 228 Expected Balance at this time to be on track for Year-End Target : 139,190 Status: Behind Target Top/Bottom Discretionary Trades for the week TICKER ENTRY DATE/TIME EXIT DATE/TIME QTY PURCHASE AMT SOLD AMT GAINS TYPE UKORB 2007-05-31-12-14-21 2007-05-31-13-51-57 10000 15500.00 18500.00 2819.73 OPTIONS CIEN 2007-05-31-11-56-28 2007-05-31-15-41-55 2000 66540.00 68500.00 1938.97 LONG NOVC 2007-05-30-14-24-33 2007-05-30-15-58-24 3000 44986.00 39322.00 -5684.65 SHORT JOYG 2007-05-30-09-32-07 2007-05-30-11-18-36 4000 215556.00 200000.00 -15589.08 SHORT

mde2004 · Jun 3, 2007

In order to make above average returns you have to take above average risks. This is what Neke is doing and I admire him for it. If you have extra money laying around that you can afford to lose this is a good place to start. Some will make it big while others will put their money in mutual funds and be content with 6% per year after fees.

michaelscott · Jun 4, 2007

Im not sure what mutual funds you have, but here is a 5 year return for the ones at Vanguard:

This the average return annually averaged over 5 years:

Total International market index: 17.81%
Energy fund: 26.91%
Strategic Equity Fund: 15%

Here is a sampling of some of the 10 year returns, meaning the returns include the tech crash:

International Explorer: 17%
Precious metals and mining: 17%
Capital Opportunity: 17%

Here are the longest best returns:
High yield junk bond fund: 9.28% since 1978
Wellesley Income fund: 10% since 1970
Famous 500 index: 12.36% since 1976
Windsor fund: 12.69% since 1958
Windsor II: 13.33% since 1985
Primecap: 15.43% since 1984
Healthcare fund: 19.27% since 1984

Most of Vanguards funds are up by at least 10% or more with the precious metals fund being up by 24%. The funds are already heavily discounted so you dont really pay high fees.

Quote from mde2004:

In order to make above average returns you have to take above average risks. This is what Neke is doing and I admire him for it. If you have extra money laying around that you can afford to lose this is a good place to start. Some will make it big while others will put their money in mutual funds and be content with 6% per year after fees.

jtnet · Jun 4, 2007

Code:
Quote from neke:

Weekly Update for week 12 ended 5/18/2007

Awful! Awful!! Awful!!!

I am still trying to figure out what hit me this week. Never did I expect this type of drawdown and this sudden. Made all the mistakes I have warned myself against: averaging on losses, chasing stocks, subjecting myself to be whipsawed. Just summoned up enough courage to post an update here.

On monday chased CRTX, buying it near the top (2.99) and selling much lower. Monday after hours bought a bunch of shares of ICFI after earnings release, thinking the figures and projection were good. Saw it low pre-market tuesday; instead of finding out why, bought a whole lot more at an average of 25.3, sold at 20.10 towards the close of market: Tried all day to sell at a bounce, no bounce came; the little bounce that came I put a limit order to sell 9000 shares at the less than bid, all bids keep disappearing. Never seen such a bagholding. Friday whipsawed on VCLK in premarket for a total loss of about 25K. Back to where I was on March 23 + withdrawals.

No more doing any discretionary trades for some time. I have to address the devils mentioned above: confidence extremely low right now. My automated trades will continue; should spend time trying to automate more things. Got to go.

Code:

Balance B/F: 184,581 Loss for the week -94,211 ------------------------------------------------ Balance C/F: 90,370 Number of Trades 28 Number of Profitable Trades 12 Since Inception of Thread 2/25/2007 - 5/18/2007 Balance B/F: 76,636 Net Gain (Less Margin Interest) 32,734 Cash Withdrawal -19,000 ------------------------------------------------ Balance C/F: 90,370 Number of Trades 327 Number of Profitable Trades 207 Expected Balance at this time to be on track for Year-End Target : 127,815 Status: Behind Target Top/Bottom Discretionary Trades for the week TICKER ENTRY DATE/TIME EXIT DATE/TIME QTY PURCHASE AMT SOLD AMT GAINS TYPE CPWR 2007-05-16-12-02-41 2007-05-16-15-59-41 16000 171110 175274.3 4111.6 SHORT TBSI 2007-05-17-09-40-16 2007-05-17-09-57-36 4375 88633.13 91933 3278.5 SHORT CRTX 2007-05-14-14-08-38 2007-05-14-15-59-02 90000 257030.1 239802.5 -17291.3 LONG ICFI 2007-05-14-18-41-26 2007-05-15-14-50-18 9000 228084 180793.7 -47363 LONG

laugh, just started reading this thread, i predicted this from the begining, just from reading the first few posts. your head is full of Ego, "oh i coulda made this much, i shoulda done this". All the winning luck ran out.

mde2004 · Jun 4, 2007

Quote from jtnet:

laugh, just started reading this thread, i predicted this from the begining, just from reading the first few posts. your head is full of Ego, "oh i coulda made this much, i shoulda done this". All the winning luck ran out.

This is not funny and you should be ashamed at yourself for making fun of someone who lost half their money in one week. How would you feel lowlife.

polpolik · Jun 4, 2007

Quote from mde2004:

This is not funny and you should be ashamed at yourself for making fun of someone who lost half their money in one week. How would you feel lowlife.

It's really jealousy. It hurts him to see someone do so well so there's a sense of satisfaction for him when someone fails.

jtnet · Jun 4, 2007

Quote from mde2004:

This is not funny and you should be ashamed at yourself for making fun of someone who lost half their money in one week. How would you feel lowlife.

You and the OP don't understand its not YOU who makes or loses you money. it's the market.

you are just a follower of the market, stop trying to be a leader. you cant control what the greater power will offer you. saying im trying to reach such and such a goal is somone full of EGO. and you will lose, you will break your own rules/laws, just a matter of time. one of the posts on the 1st page said somthing like i bet the account liquidation in 6 months, couldnt be truer.

henry76 · Jun 4, 2007

it hurts when you lose a lot , but he's still ahead , quite a bit actually , so he's not doing so bad , may i ask if you have high gearing /margin and where you get it?