Trading, Taking and Income, and Capital Requirements

vanzandt said:
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Try cookie dough if your tooth hurts. Put it in the microwave with a bowl of vanilla ice cream and have at it. You'll never look like that Freddie cat up in Canada that posts here though eating that bs.
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I wanted you to admit that the RAvAR thing was funny, in a weird way, and to acknowledge you owed me a cookie. So I will still demand my cookie from you.

You are becoming less fun as you age, Mr. V.

And what I am saying is, we had positive GDP through Q4 2018, but we dropped 20%, all because of some fed rate raising, maybe? Just imagine what might happen if we DO get 2 quarters of negative GDP? Game over man!

 
Overnight said:
I wanted you to admit that the RAvAR thing was funny, in a weird way, and to acknowledge you owed me a cookie. So I will still demand my cookie from you.

You are becoming less fun as you age, Mr. V.

And what I am saying is, we had positive GDP through Q4 2018, but we dropped 20%, all because of some fed rate raising, maybe? Just imagine what might happen if we DO get 2 quarters of negative GDP? Game over man!

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Cake's out in the rain.

 
raVar said:
So as to not derail the thread ( https://www.elitetrader.com/et/thre...egy-trading-journal-that-shows-profit.337303/ ) where this topic came up? I thought I would start a new thread here.

When it comes to the topic of Professional Trading? Inevitably, the topic comes up ...

How much capital do you need? To live on, and still trade?

A few key posts from folks in that thread ... to this particular topic ...

In the whitepaper in that thread, it states:

"Earning an income from trading a smaller retail account, will require a much different approach than say, growing an account with a single intra-day trading process. Of course, that would require that new retail traders understand that mathematically, they will never, ever be able to pull in a living-income from a small $25,000 trading account. We have found that many refuse to accept this truth. And it is truth. It is not opinion. It is mathematical fact, that has been proven time and time again that you cannot pull a living-income in from a such a small retail trading account."​

To that statement? The following replies are key ...



As well as ...



As I stated in the other thread? I think this is a fantastic topic. And excellent points made by both of the posters above. I'm really glad they said the above, because it's critical for aspiring traders who wish to trade from home as their sole income (Professional?) to understand.

So again, so as to not derail the topic in that thread too much? Let's discuss it here.

So here's the points that I would offer for consideration.

1) Discipline and a great strategy do not matter. $25,000 is too low, for the best traders on this Planet ... because

2) Of Drawdown. Even on the best, of best strategies.

When Drawdown enters the picture? Which every strategy on this Planet experiences ... it quadruples the problem.

So you can have a fantastic strategy. A BEAST of a strategy, that beats most traders on this Planet. But each strategy has a Drawdown Metric.

Every.

Single.

One.

And if you have to take a living from a strategy? A "Draw"?

Then, when you experience inevitable drawdown? Or even a flat month, or two flat months in a row?

You are automatically exercerbating your problems of taking a draw.

That's before we even get to Taxes, Slippage, and Commissions.
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Good post, worth thinking about. Contains typical myths about trading regarding size of account etc.

All the stuff people say is wrong imo.

Find what works for you and do it. Who cares what some dimbulb journalist writes.
 
I can't remember when this guy added any value whatsoever. I am a stinker oftentimes but believe I add a fair portion of original thought and content and help out when I can. When did this guy add anything of substance? Must be before I joined. I am sure he will respond to me even though he has me on ignore, but he loves to log out and see what others write about him. A really weird creature.

themickey said:
The door's open but somehow you don't have the urge to leave. :banghead::banghead::banghead:
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