I like those kind of calculations ....Quote from DT-waw:
Of course it's BS. There's a lot of BS on this board recently... thanks to mrmarket, longshot/fpc/gekko/rocksolid, murray t turtle, harrytrader
Let's calculate: with 1.5p avg/day x $50/p = $1,500/month/contract. With $10k per 1 contract your monthly return is 15%. With compounding, your acct grows x5 in 1 year.
When I put together a ratio of contract size to the amount of capital used in average, my per contract profit of course shrinks to an average below 2pts per day per contract, even today. However, that to me means 1-2 pts per every 10k in my account, making me a gain of approx. 530% p.a in theory. However, when you consider commissions, it becomes less than 300%. Subtract education, datafeed, software, seminars, travel etc from that.
I consider this OK, but I'm definitely striving to improve...
I could definitely (probably) make a lot more if I maxed out my account to 1 contract per $5k or less, but then the drawdowns could become significant, besides the inherent risk of a complete blow-out...
I don't generally go for the kind of drawdowns candletrader seems to like (i.e. 20%), however I will take high risks if I consider them worth it for the potential gain.
Have a look at the robbins world trading cup - the current leader is up over 500% for the year already in futures...
If I look at their returns, I'm still quite far away from elite...
Besides, don't get me wrong - But I'm absolutely obsessive about the markets or whatever it is I'm doing.
Since somebody just PM'd me again regarding what I'm doing, and how I do it, here a little summary:
4 Years ago, I was nothing but a POS, I was a highschool runaway and had essentially nothing to look at, except for my then germinating determination to live a better life. I was living in northern Europe, essentially on the street, and I had f^% all.
I was a -LOSER-. Period.
Well, I believed that determination is all I'd need to succeed. The next thing that happened is I moved to Australia, a much nicer and warmer place. Then (after being apprenticed by a Jeweller for about 6 months) I started to build a Jewellery Design, Manufacture and Retail Business, which people responded to very positively. I am, by natural inclination, an artist and a scientist (not religious, not too formal, extremely hungry for knowledge and research). I believe trading requires a good amount of both art and science.
Next thing, I would eventually become world champion on the virtualstockexchange several times in a row... daily, weekly...
This is when I said: Enough - I've gotta get into this now...
I've still got the business but am mainly focusing on trading now. My goals for a better life which I set 4 years ago were to:
#1. Become completely happy by the time I'm 25.
#2. Become rich by the time I'm 25.
(Rich by definition of Forbes Magazine is $10m net worth +$1m pa net income)
Goal #1 is achieved so far. I live in a fantastic place, drive a great car, know lots of great people, work a 'dream job', nothing shadows me so far...
Goal #2 I feel a little pressure now, since my 22nd birthday is coming up in 2 months, but I'm determined and confident to make it to millionaire status by 25. But that still won't make me take exceptional risks in futures trading. I believe (have proven) that less risk pays off in the long run.
My new goals currently are:
Goal #3: Build a trust for my mother, who has absolutely nothing and is rather unable to work, in order to finally make a good life possible for her.
Goal #4: I will win the Robbins World Futures Trading Cup, and then next the Taicom Japanese Futures Trading cup. I would love to move to Japan for a while, it's not far from here ... Also learn Japanese and meet great girls
Goal #5: Possibly build a public capital management company (trading trust) - I'm not sure whether that would interfere with Goal #1, but it would definitely achieve goal #2...
Goal #6: Advance to higher degrees in my martial arts training.
Now, these are some of my rules to achieving things:
R#1: I must set goals. No destination - no destiny.
R#2: I will not do anything that compromises my happiness, since this would violate my performance, making goals harder.
R#3: I do not compromise on my goals, I live every day for my goals, I do not step aside or even consider doing so. Since my goals are set to achieve happiness, there's no reason to violate this rule. I do not stray from my path and I will crush anything and anybody that falls onto my path and obstructs me / doesn't make way for me.
R#4: I listen carefully to whatever valuable other people have to say, and then do my own thing. I never turn away information of knowledge that could be valuable.
R#5: I do not chase status. This behaviour comprises weakness since it means comparing yourself to others. I drive a sportscar because it makes me happy. If there's a crowd of girls standing around my car, saying "Wow", then I go: "Yeah. Thanks a lot! I like it, too." and drive away. I have great friends and girls that aren't interested in status, and I like keeping it that way.
R#6: Knowledge is power. Ultimately, education and information is the only way to absolute success.
R#7: I must set goals. I cannot succeed in life without them.
So folks, hope this gives you a few inspirations. It's definitely important to set goals in trading, and I believe that people who say: "You can't make more than that much in a day" etc will never actually make more than that. This is because of the simple truth: "You are what you think your are / can be". If you compare yourself to your buddies / other performers, chances are you won't outperform them too soon. You're better off looking at the (world) elite - in anything. Talk to them. See how they did it. I try to whenever I can...
Have Fun!
~Scientist
