My take has been the money isn't huge to him, and he's stroking his ego making risky trades that impress others. This can be a danger to all traders, when keeping up appearances is more important then making money. If $200,000 is pocket change for him, there is nothing wrong with his hobby. If he genuinely cares about this money, the strategies being used are inappropriate in this market.
This was the most important tidbit in what you said. Would have been very easy to lose the most part in between all the NoDoji related jibba jabba.
you know someone has made it in trading when they realize they have no use for this place anymore following comments by a dumbass like blotto , 'why am i putting myself through this when i'm giving much more than i'm getting' gl nodoji...
Weekly Update for week 27/50 ended 7/15/2011 Modestly positive week, up 4K (1.8%). Second week of putting my system in place. One core discretionary trade +3.8K, two automated trades +1.9K, 7 experimental trades, -1.7K. Code: Opening Balance: 220,089 Net gain for the week 3,977 ------------------------------------------------ Net Balance: 224,066 Number of Trades 9 Number of Profitable Trades 6 Since Inception of Thread 01/8/2011 - 7/15/2011 Opening Balance: 335,899 Net loss (Less Margin Interest) 111,833 (Down 33%) ------------------------------------------------ Net Balance 224,066 Number of Trades 519 Number of Profitable Trades 271
Its been a modest week in terms of money being made. However, this week's performance deserves a comment. You know what I liked most about this week's performance Neke. That you had only one core discretionary trade. Being extremely choosy and trading less but higher probability/conviction opportunities is the key to success. GL mate.
Now you're talking. Hammer away at it slow and methodically. I have a feeling the market is preparing to become unstable, and capital preservation should be top priority. The one month loss could be a warning of things to come. Just my worthless opinion.
Keep this pace Neke. It's like watching paint dry compared to how you were trading, but it gets the job done.
What really matters is making $ on a risk adjusted basis, not % P&L. Traders know to focus on what makes money over time sufficiently enough to cover the inevitable losses. This is a large revenue (in terms of leveraged assets controlled), low margin business (a trader may average "gains of $12,000 for every $10,000 of losses" = 20% operating margin). In order for such a trader to make 1 million, he must endure 5 million dollars in "bad trades" (gain 6M for every 5 million lost = 20% OM). Assuming the trader has an edge: most don't.