Quote from RedDuke:
Hi DrawDown,
My risk is minimal. I trade very short term moves. If I have a loosing week, it will be orange alert for me, 2 loosing weeks will be a red alert, where I would stop trading and revaluate what went wrong.
I said that my main goal in trading is to âMAKE MONEYâ, it is not the goal of my life. I have been blessed with great family and great circle of friends and enjoy life as much as possible.
50% a year is difficult, but nothing special if the capital that is being used is small. Paul Tudor Jones said that 100% not too difficult to attain depending on capital involved. Turning 10K into 20K is not impossible, same with 100K to 200K, almost the same with 1 mil to 2 mil. The reason for this is due to most major/liquid markets being able to handle block sizes to attain these returns. Now 10 to 20 mil is a bit different and 100mil to 200mil is almost impossible. Major players these days operate with billions thus 20-30% is very respectable.
Regards,
redduke
Hey RedDuke (I can't decide if RedDuke is a better ID than DrawDown...),
I read somewhere that hardcore investors want someone with
8 to 15 years trading experience before they will invest money with that person (such as with a hedge fund manager), and get this... the trader has to have double digit returns on average for all those years.
If this is true then... it may indicate that even the best traders - ones who can attain superior trading results - end up blowing up accounts prior to the 8 to 15 year mark.
The reality to that may be... there are many guys who can get high returns... for awhile.
Then the market vaporizes them.
I'll have to stick by my 10%+ a year take with lowest risk feasible to make profits continously as being a superior trading system.
Keep in mind though, that it sounds like you and me are not playing the same game time-wise.
Starting in January this year, I chose
not to put in the grueling hours I had previously done that enabled me to book staggering gains.
I think it's better to trade a 10, 15 or even 25 million dollar account... and get a steady check each month for a percent or better of the trading account size - and be able to spend 80% to 90%
doing other things besides trading, than to try to "MAKE MONEY" with an inferior-sized account... at the expense of higher risk.
Albeit, you've indicated that you are able to reach the highest returns using minimal risk.
I take my digital hat off to you. I have not advanced to such levels.
I may be around in 15 years. Whereas those who go for much higher gains may not.
If I can do better then I may see you on the other side of the losers who clutter the markets with their 50%+ gains (for awhile).
This scenario suits me just fine, as I've seen no way to increase profits without severely increasing risk off the scale of practicality.
If I were you, I'd keep my records and in a few years gather some heavy hitter investors to fund an account you can trade - then pad your pockets big time with a hefty cut of the profits you take from the market using their money.
Oh yeah, one other thing... $10k into $20k is feasible and so on, as you indicated, but then you cast doubt on turning $100mln into $200mln, etc., pointing to a lack of liquidity.
I've thought otherwise, seeings that the ForEx market (supposedly) does around 2
trillion dollars a day in volume.
Plenty of liquidity there, I'd think, to continue doubling into the $100s of billions I would imagine.
Regards,
DD
