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RedSun
Registered: Sep 2009
Posts: 271 |
04-27-13 02:09 PM
Quote from neke:
Yes, still trading, although like you already know, the balance is still well below $100K. Will give a mid-year update at the end of June (unless of course the balance comes above 100K in which case it will happen sooner).
What I've learnt from Neke's trading is how important money management is.
Most of the gain/loss comes from a few large moves. Those 15% or more big days are the real business.
When we make a trade or take a view, if we have edge, say, 60% right, it does not mean we'll make $$. A bad money management on even 5% of the days can kill the book.
On the other hand, if we do have an edge, say 50% chance right. But if we still have good money management, we can still make a winner on the large good days.
To me, it appears it is much easier to trade a large book than a very small book. If my target is $1k a day with a $10k account, I'll have to try to make 10%. This is hard and it can blow up the book easily.
But Neke had a large book of $400k. He can live a comfortable life with only a 1% (or $4k) gain everyday. With such a big book, he can support 40 CL contracts. But he only needs to keep a position of 4 contracts to achieve his $4k target. 4 contract position is small to his book.
Whatever his case is, it seems he likes to take risk and add to his positions and then out of control. And he got hurt with a few large moves. You do not need many 15% losses to ruin the book.
Wish Neke's good luck and get back to $100k. He should learn something. He has been doing this for several years.
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JJacksET4
Registered: Jun 2007
Posts: 654 |
05-03-13 12:47 AM
Quote from neke:
Yes, still trading, although like you already know, the balance is still well below $100K. Will give a mid-year update at the end of June (unless of course the balance comes above 100K in which case it will happen sooner).
Neke,
Thanks for continuing to update us. I know it is tough, but could you consider an update sooner then that - it's hard to wait that long! 
It doesn't sound too good though that you mention that account is well under $100K, but that could mean different amounts to different people.
JJacksET4
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JB3
Registered: Jan 2007
Posts: 421 |
05-03-13 10:02 PM
Good luck Neke. I'm still rooting for you to make a comeback.
It is really tough to trade and withdraw money out every month to support the family. Big thumbs up to you.
Money comes and goes. At least you spent the money on your kids.
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oraclewizard77
Moderator
Registered: Jan 2006
Posts: 2325 |
05-03-13 10:13 PM
Its not money management, it's control of one's emotions. I have seen him not want to take a loss on an option trade during expiration and then go all in with massive option selling on huge margin.
Quote from RedSun:
What I've learnt from Neke's trading is how important money management is.
Most of the gain/loss comes from a few large moves. Those 15% or more big days are the real business.
When we make a trade or take a view, if we have edge, say, 60% right, it does not mean we'll make $$. A bad money management on even 5% of the days can kill the book.
On the other hand, if we do have an edge, say 50% chance right. But if we still have good money management, we can still make a winner on the large good days.
To me, it appears it is much easier to trade a large book than a very small book. If my target is $1k a day with a $10k account, I'll have to try to make 10%. This is hard and it can blow up the book easily.
But Neke had a large book of $400k. He can live a comfortable life with only a 1% (or $4k) gain everyday. With such a big book, he can support 40 CL contracts. But he only needs to keep a position of 4 contracts to achieve his $4k target. 4 contract position is small to his book.
Whatever his case is, it seems he likes to take risk and add to his positions and then out of control. And he got hurt with a few large moves. You do not need many 15% losses to ruin the book.
Wish Neke's good luck and get back to $100k. He should learn something. He has been doing this for several years.
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