you need specialized software to do it in stocks, to crunch the numbers. Then you can flip in and out over months based on criteria in stocks. maximizing returns. Its easier eyeball single derivative charts. But stocks definately offer more opportunity just because of the greater number at different cycles.
Traders Goals
- Thread starter Spectre2007
- Start date
the volatility is not there to signal a top in the sp500.
I figure the ratio of stocks capital application to futures margin application to be about 1 to 50 in terms of return on capital.
Flipping in stocks has a limitation of about 100,000 shares per stream of capital. So after a while you have to run many parallel streams.
When that reaches a capacity based on effectivemenss and efficiency you add another type of block trading called sector rotation where the hold period is 4 to 6 weeks at a return of about 4% a week. This is unlimited, in effect. PVT cycles run four to 8 days each and at 100,000 shares in a position the average partial fills to enter is 20 blocks and the average partial fills to exit or cross over is 30 blocks. The time required (by not exceeding 10% of cumulative volume per day) is about 4 hours of the 6 1/2 hour rth's.
The cars being run in futures varies over about 6 distinct money velocity pace levels. In ES for example a pace of 2 ticks/min allows a person to easily handle 100 car units as partial fills. The technique is to know how to carve the reversal to optimize the loading of the cars. Ordinarily I run my T&S at a 50 contract lower cut off level.
Were one to look at Stevie Cohens operation, and be managing the captial he has in a manner to continually extract capital from the markets, it would take a crew under 20 and probably just 12 or so to continually move his capital unimpeded by trading capacity constraints. It is my feeling that after an strong effort to get everyone on board in this appraoch in 2007, it will be possible to deal with about 25 world wide exchanges and put crews to work with capital to do such things in very independent shperes that are very productive.
Personally, I feel that people of like mind to Yunus, should have the front row seats for using their capital to affect transferring form the conventional pools to the needed pools for solving societal and cultural problems that cause world unrest. You can bet that I am going to live to see this happening. There is no rocket science involved in converting one paradigm for making money to another. You simply use one paradigm to remove the capital from the other paradigm. It is starting out as a very fun game.
Attached is an esquity curve that shows how the application of the tools for gaining effectivenss and efficiency unfold as a consequence of focussing on 8 specific skill development facets that have been proven to be the path to expertise.
At some point is was clear to me that someone such as yourself wouldcome along and begin to articulate just what the potential is for the man in the street to become very wealthy. Naturally, there is no incentive to be vary wealthy through the means of learning to trade effectiviely and efficiently. The conventional orthodoxy precludes this from almost every anlge that is considered. Too bad for the financial industry torch carriers. someone is going to swipe their capital once a critical mass of people get on board with respect to pool extraction. that has happened at this point.
What is the connection between the Net Worth Curves of individuals to the "different derivative bubbles"?
Are you saying that the high networth individuals with their more risk tolerance will have access to those occasional financial bubbles thus, further expounding their wealth?
It also exposes you to a lot of false moves. Its not quite that easy as to understanding the LR.
yes your right, the wealthy become wealthier, but only if they apply proper risk management. There is no difference between some trust fund baby entering the SP pit, versus someone with a small grubstake applying no risk management.
But a small grubstake with proper risk management and psychology can be multiplied by multiple factors.
But a small grubstake with proper risk management and psychology can be multiplied by multiple factors.
Hey Jack, It would be great if you can further explain these two sentences:
1) Just what is the potential for the man in the street to become very wealth? How much money, how fast?
2) Why isn't the man not interested in learning to trade effectively and efficiently even with multitudes of trading programs are offered to the masses. ex: BetterTrades, VectorVest, and other insourmountable amounts of trading school etc.
psychology, plus trying to eke out a living. Feeding the kids, making sure the kids have proper cloths to wear, and having your kids not be teased at school for not wearing designer labels.
trying to do this makes the common man risk averse to the point of avoiding and not being able to quantify it minute to minute.
trying to do this makes the common man risk averse to the point of avoiding and not being able to quantify it minute to minute.
Fear of poverty is a state of mind, nothing else! But it is sufficient to destroy one's chances of achievement in any undertaking.
This fear paralyzes the faculty of reason, destroys the faculty of imagination, kills off self-reliance, undermines enthusiasm, discourages initiative, leads to uncertainty of purpose, encourages procrastination, wipes out enthusiasm and makes self control an impossibility.
Napoleon Hill, Think and Grow Rich
For a common man, how would you define his "success"?
Retirement at what age and approximately how much retirement funds would qualify him as such?