Stages of a Hershey Trader Swordsman (R. Raskolnikov) is a great example of the stages a Hershey trader goes through while studying Jack's "teachings." Stage 1 -- Eagerness and Ingratiation licking my chops as i only get better yes, agree jack and spyder are great, jack is a little tough to follow but his teachings, once untangled, are very helpful! http://www.elitetrader.com/vb/showthread.php?s=&postid=1563544&#post1563544 Stage 2 -- Delusion and Defensiveness Im sure you probably didnt know this but actually on the very first page of the "Spydertraders Jack Hersheys Futures" thread there are links to many pieces of info for people to do their due dilligence first, ranging from the terminology to concepts to just basic background info. Anyone who read that stuff and continued on would never been seen as following a guru blindly. And it cleary states that one should read all the associated links before moving on. http://www.elitetrader.com/vb/showthread.php?s=&postid=1862711&#post1862711 Stage 3 -- Denial I've repeatedly told you I don't trade SCT only that I asked some questions over a year and a half ago http://www.elitetrader.com/vb/showthread.php?s=&postid=2082939&#post2082939 Stage 4 -- Acceptance Not once have I ever spoken to Jack Hershey and for all I know he's a shitty trader like you all say. http://www.elitetrader.com/vb/showthread.php?s=&postid=1753104&#post1753104
Guys (and ladies); All I ask is very simple: 1 point a day, EVER DAY, is a 10% return right? so it will be 200% monthly ROI? For a fulltime daytrader, can he/she take out from the market 1 point a day, EVERY day? I did not ask HOW to do it, what is the R/R ratio for safety, how many years I need to watch charts, what will be the time frame etc. It is for looking into the subject of day trading as a pure technical/mechanical move. Like a production line. You get your setup (whatever it will be), than your trigger shows up (again, whatever you created as a trading model for yourself) and you get into a trade. It moves 1 point + spread +commission into the black and you are out, turn off the computer and go home. Do it day in and day out, and produce 20 point a month, every month. The issue of strategy/stop loss/indicators/RR, sharp ratio, timing etc, all goes into the trading model that you developed for yourself as the main machinery in this production line. If you deal with it as a low level production line, have 4/5 rules to follow with safty rules incorporated like in a production line, can a fulltime trader get 1 point out a day?
That is only true if you are using max leverage (1 car/$500 in account) and you ignore commissions (which is a big mistake, esp if you are going for 1pt gains). In reality you will never survive using leverage like that, a sudden gap against you could wipe out your account instantly. Yes, it is possible but that doesn't make it easy - if it were easy everyone would do it and be rich. Jumping on trends for an 1 point gain looks like cake when you look at ES charts after the fact. When you are sitting there on the hard right edge of a chart its a whole another game. Spend some time with a sim account and try to do it. Please do not assume its a trivial exercise to come up with a mechanical system that will generate such gains with consistency as your last post suggests (production line)
Sorry, don't mean to be demeaning here, but this is a very naive approach. Like the prior poster said, try it in Sim for a month, and I bet you won't be able to do it. What happens when you get stopped out of that first trade at -2 (or whatever your stop is). Then, you will inclined to look for a +3 on your next trade of the day (in other words, you will be looking at profit, and not your trading). If it were that easy......
$500 is fine for smaller size. If any of the above events actually ever hit you hard you would still lose the same amount of money even if you were trading higher than 500 per car. I'd personally rather owe them and make payment in this situation then risk leaving extra money in a uninsured account. Unless of course you can't handle the emotional aspect of risking 20% of your funded account on any one trade.
Thank you for your answer. If you re read my post you will see that I ask just for a yes/no answer and not if it is easy or not or what need to be done to create such a mechanical syatem to produce one point gain a day. The how is a totaly different subject that should come later.
Why ignorent? My first step is to evaluate the goal. Is it possible or not. If not, forget about it and look for something else. If yes, move to: step two- what will it take to get there. step three- can I or have I have those skills/knowhow/funds/time/etc to get there. and so on.....
Your better choice would be averaging 20 points a month, or even 5 a week instead of trying to hit 100% 1 point every day.