Trader P/L 2005

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Quote from FCCT:

Buying power is not an issue in this business...so percentage gain doesnt make sence...and your 500 day is equal to mine or anyones 500 day.
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In the sense that i can take that 500 gain and buy the same things as you, correct. But in trading I would say otherwise. If my 500 gain was from a million dollar+ bond gain and yours was from gambling all of your account at once, it is not. I know those are two extremes, but that is the example of why percentage exists. it exists and is derived from risk...not buying power.


RT

EDIT: also, percentage is the only effective means of comparison between two seperate time frames. If you make $50,000 on your account this year, it is much easier to make $50,000 on that same account in the next year.
 
Ok, so what's the % return of someone who made $500, but has put up no money of their own?

Many prop traders start with zero and trade the companies money. Some put up a token amount. Either way, the buying power is available to trade much much more than their equity balance would indicate. I know for me, I can trade the same size whether I have $10k in my account or $100k.

% return is a meaninless number to prop traders, which comprise many of the regular posters on this thread.
 
Guys,

If you want to further discuss percent return vs. absolute dollar return, or money management, or trading style, etc. please do so elsewhere as this thread needs to remain on-topic. I recommend that if you find those subjects to be of interest then please start your own thread in the Strategy Trading forum. Thanks.
 
Dec 27
Finished 8 AM PST, must go to work

Traded 100 NVLS made $12

Traded 1700 KLAC made $406

Gross Profit $418

Commissions $31, (traded several 100 lots as scaled in/out)

Net Profit $387

New Value of Acct $27808
 
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