Trader P/L 2006 Questions and Discussion

[Mike805]

Quote from billp:

Mike805,

Is it possible to reveal what is the usual risk/reward ratio that you are looking for before entering a trade? Thanks

You know, funny thing you ask that question at this time.

I am feeling generous so I've attached a typical analysis I do before entering any stock trade. I literally have hundreds of these docs that I create and review on a daily basis before and after every trade. I prepared this one for a friend because he brought PLAY into my radar - I am currently helping him learn some of what I do. This is a good example of what I look for in a stock trade, most of my trade analyses do not go into as much depth but this is the most recent analysis with a reader in mind.

For futures (same analysis as attached although its a 5min chart) its 1 to 3 at minimum R/R (I prefer directional days just for that purpose ~1-5,7,10) and I am very quick to wash a futs trade. Hence my winning trades are about 35%, washes about 25% and losses about 40%.

 

[Rearden Metal]

Quote from marketwhizz:

RM -- how did you swing DAKT to make that cool half mil? Or are you a strict daytrader?

By having a sharp eye for detail, remembering what I've seen, and not asking questions to which I've already seen the answer.

:eek: :eek:

 

[billp]

Mike805,

Thanks. That was very useful. Much appreciated.

Was it a coincidence that I asked this question at this precise moment? Don't know. All I know is yesterday I happened to look at a thread that you participated and before reading yours and other people's answers to a question/chart posted by someone, I already had in mind my answer. I would go long or short (bracket trade) depending on which level price hit first and 1 of my long entry level (scale in) was pretty much like what you mentioned. Today I was looking at another stock, and I papertraded it with a long entry. The scenario was pretty similar. However, I knew that I may not have taken the trade in real live as I was not really sure what the chances of success was etc.

So when you happen to write in this PNL thread today, guess what, I just had to ask you the risk/reward ratio question as this will help me in deciding whether to ever take the above type of trade for real.

Thanks once again

 

[marketwhizz]

Quote from Rearden Metal:

By having a sharp eye for detail, remembering what I've seen, and not asking questions to which I've already seen the answer.

:eek: :eek:

You post 100x a day -- what, you expect me to read it all?

 

[alwayshumble]

By the way, anyone with an echotrade account can manipulate numbers sans photoshop...all you have to do is change the liquidity rebate settings to some high number and the net p/l can be anything you want. e.g., see image below.

...my actual net today was under 1k.

PS - Not saying that RM's or anyone else's numbers are not legit, just that its easy to fake.

 

[Hydroblunt]

Quote from palmbeachdude:

You missed the point completely dude. It is being bitter and judgemental and going on negative rants that is posotively correlated with failure.

Yeah burning out equals failure. So I totally failed when I lost 20 lbs, got more energy, relaxed my nervous system & improved my vision in the last several months. I also completely failed when I looked outside the world of daytrading and realized that there is more out there than daytrading US equities.

And trying to convince someone of your trading prowess by explaining how many monitors you own is just another nail in the coffin.
Quote from maverick74:"The rule at our firm was, the more screens a guy had, the more negative his account was."

Once again you show a sign that you are another wannabe who probably never will have the balls to go in and do it. Maverick is talking about guys who wanted 5-6 monitors for no reason, or brand new guys who wanted more monitors without any true need. Rather, they thought that more monitors would improve their trading unlike traders that need more monitors cause their charts, T&S, IE windows were cluttering on top of each other. But then you do not have the experience to understand what he was talking about.

From the hardware section on this site, which was a useful resource as I was putting the PC together: "Trading with a single monitor is like guarding a prison from a guard tower that only has one window". I went with three because that is what I last used. I mentioned it cause I assumed your brain could understand that I was making an investment in the hardware. And since you keep trying to hint that I am an unprofitable trader, my point is that why would I make that investment and take up the space in my studio when I'm only gonna trade 5-15 hours a week. I guess I just LOVE losing & wasting money.

Motherf**ker, you start insulting me and then act as if I am the total d*ckhead when I respond back with fire. Since you got such an obsession with me, why don't you grab your balls and come say it to my face. Otherwise, STFU and connect with a few other ETers, make a private chatroom and talk about me all you want. Enough of your sh*t, this is off topic and I do not think the posters would be too happy if this gets thrown into chit chat.

 

[ryancohen]

Quote from alwayshumble:

By the way, anyone with an echotrade account can manipulate numbers sans photoshop...all you have to do is change the liquidity rebate settings to some high number and the net p/l can be anything you want. e.g., see image below.

...my actual net today was under 1k.

PS - Not saying that RM's or anyone else's numbers are not legit, just that its easy to fake.

hilarious.

 

[birdman]

Question for high volume, short term prop and retail equity traders:

What percent of your gross trading profits go to commissions?

This should be interesting

 

[JMowery1987]

Quote from birdman:

Question for high volume, short term prop and retail equity traders:

What percent of your gross trading profits go to commissions?

This should be interesting

I only pay .68 cents per-ticket, that's barely anything.

Most of the time I see Red_Ink_inc paying around $50 - $100 per day. I highly doubt it's that much.

I think a better question would be how much do you pay in ECN fee's or how much payout % do they get, as commissions now are getting so low, that the ECN's and payout % is probably more of a significant factor.

So, I highly doubt how much commissions someone pays is interesting nowadays.

 

[Red_Ink_inc]

Quote from birdman:

Question for high volume, short term prop and retail equity traders:

What percent of your gross trading profits go to commissions?

This should be interesting

OK, I guess I should chime in here as my name was mentioned.
I don't mind divulging this information as it's posted on the blotter daily anyway. I have no idea why this would be interesting but here goes.

So far this month commissions account for 5.15% of my gross trading profits.