Turning $58 into $5,800,000
- Thread starter exaltedangel09
- Start date
this thread is most likely going to turn out to be one of our resident multi-alias basement dwellers.
cold/c-kid/Jasonn is the front runner for OP, but there are a few other psychotics also starting these kind of threads.
cold/c-kid/Jasonn is the front runner for OP, but there are a few other psychotics also starting these kind of threads.
How many people get into trading thinking it easy money only to learn its alot more than work than any 9-5 job.Would you start any other business with $1000? This is the mindset of alot of people I can trade for a living with minamal start up cost.This is just my observation of people being led to believe you can turn $1000 into 1 Million . This is why trading has a 95% failure rate and we see so many snakeoil salesman.Once you realize this isnt a get rich quick scam and alot of work 75% quit .I dont want to be negative if the op is legit but these kind of threads are very misleading and dont actually show the true nature of trading as a bussiness . Sorry for going on like this I just get tired of this bullshit.
Phil
Phil
exaltedangel09
Guest
Phil I agree with you 100%.
However, My trading strategy is not short term in nature. Just to let everyone know my strategy has been backtested from 2007,and so far its returned 380% with options and a 5% DD from the time period july09-dec09.
My system only generates 10 good 3% signals a year. 20 2% mediocre ones and 40 0.5% signals/year.
fyi
I work full-time as a scalper and I know how hard it is to be a trader.I hope I don't mislead anyone. I still believe stead, consistent ,small profits is the way to success..
I've been through trading struglles..I've been stuck in 10000 shares of a NYSE VERY ILLIQUID dollar stock and had to liquidate my position after-hours. As you know the nyse book closes close at 4:00:00 and nothing trades in these illiquid stocks. I was going to have sell 10,000 shares at pennies!! I told my friend to create the spread to save my ass to prevent me getting fired + losing thousands of $. I'm lucky the SEC didn't call me up for washtrading.
The only reason this thread is alive is because I want to show people that consistent compounded profit in the end is crazy. I returns 24% a year with <10% DD and I wanted to see what would happen if I levaraged everything AND compounded my returns. So far I am up 380% since June with levarage and this was only on 25% call leverage. Imagine going 100% leverage with calls on every trade? You only need to be right 17 times before $58 turns into 5.8 milllion. Statistically p(market goes up is .5)so 0.5^17=1/131072 = 0.000007629%
So I have statistically a 0.000007629% chance of doing it.
Still better then lottery tickets
...
Trading System
My trading system only gives me 3-4 trading signals every 6 weeks but their profitability is 2-8% with drawdown of 2%. With options I can get gains of 50-200% in 1 trade but suffer 30-75% DD if I get stopped out. This strategy is very profitable w/ equities however I want to push it to next level.
My strategy is quantitative in nature and has a lot to do with time series data and forcastability. Note it only works in a trending market. Anyways let's see how far I go. If I get stopped out on trade 1 it's really not my fault. my trade setup was on nov.30th to buy.. however I was too busy to POST so I bought on friday (30+points up later--thats a 100% move with calls--and I would only need to be right 16 more times..
but my system still points even higher in the markets so why not buy 58$ of calls?!).
S&P Target 1130-1155 by December16th-December 30th (huge std.deviation error in this time series forcast)
Trend Change from up/down is a break of nov27/30th swing low.That's where my stops are sitting leaving me with $6
Exaltedangel09
Nothing against you. I just see alot of these threads and finally had to say something. I started as a broker in 93 then a otcbb MM in the late 90s finally trading on my own in 2004 . It has been alot of work as Im sure you know.I hope you have a legit system that works and you post your trades for others to learn from.I dont want to distract from what your doing . Its just that you see about 20 of these threads started every week and gone in a week. Good trading to you and I look forward to updates on your trading.
Phil
Nothing against you. I just see alot of these threads and finally had to say something. I started as a broker in 93 then a otcbb MM in the late 90s finally trading on my own in 2004 . It has been alot of work as Im sure you know.I hope you have a legit system that works and you post your trades for others to learn from.I dont want to distract from what your doing . Its just that you see about 20 of these threads started every week and gone in a week. Good trading to you and I look forward to updates on your trading.
Phil
$58 is not a lot of money. If the OP loses that, I am sure he could make it back in a job within a day.
This would be a good learning experience for the OP regarding leverage.
PA
This would be a good learning experience for the OP regarding leverage.
PA
Exalted - I'm interested in the part about getting fired. I read online that at one firm traders are put on probation if they lose 8% of the money the company gives them to trade. They are fired if the loss grows to 12%. If you can say, are these numbers for trading losses that can have one in trouble in the ballpark?
exaltedangel09
Guest
If anyone can share light on this, I'd like to know too.
I'm a scalper so naturally my losses are inherently small. My firm has my daily stop loss set at 0.1% of my full BP, (I usually only utilize 1/15th to 1/5th of my BP so my real daily stop is 0.5-2%/day).
Losses are pretty natural in the biz.
However. a 8% loss of my entire account would equate to almost 40% of my bosses annual salary. yikes. he wouldn't like that. Those numbers seem a bit high too me. Then again I don't day trade, I scalp so what do I know?!
Unless you are trading a small amount, I don't see why any firm would keep someone taking 8% losses of their account. Then again if you put up your own money, I don't see why NOT you can't take big losses..it is essentially your own money.
Can anyone share their experiences ?
Please excuse TZ,,,he is not feeling well at the moment....he tried to trade this week
