500k with 50% return

Discussion in 'Professional Trading' started by LuckyPimp, Aug 21, 2006.

  1. The majority of posters on this site ARE ATM machines.
    #11     Aug 21, 2006
  2. jetbird


    Start your own company, preferably in fast growing industry. No better way in the long run to make cash(and lose) in large chunks.

    #12     Aug 21, 2006
  3. I am weak.. I had to delete my post yet again. Hope you guys had a chance to read it.

    #13     Aug 21, 2006
  4. 1. Go to McDonalds drive-thru and buy a large coffee, probably cost you about $1.50.

    2. Pour the coffee on your lap.

    3. Sue McD's for millions.
    #14     Aug 22, 2006
  5. I think what the guys are trying to tell you is that you don't really grasp how the market works. Better try asking another question that can start you on your own firewalk. You are gonna get burned baby - that's the law of the markets - it's how ya learn. My advice is when you think you got a winner - invest $500. Then spend ages discovering how such a good thing backtested to certainty became such a crappy performer in the real world. When you get the answer invest another $500. Keep repeating until you run out of money or make a fortune. That's what I did, and now I make a killing. Only took 20 years. Good luck.
    #15     Aug 22, 2006
  6. Find an illerate old farmer, living in a shack on 200 acres. Tell him that you will pay the taxes on his farm and 100 bucks a month until he dies if he wills it to you. I knew an old judge who did this all the time.
    #16     Aug 22, 2006
  7. Skilled traders can average +50% (or better) annually with $500k capital. That is absolutely possible, and more.

    The key word in that statement above is <i>skilled</i>. "Skill" requires time, effort and experience to acquire. The mere possession of $500k or $5mil does not permit anyone to make even a 1% annual return before developing skills necessary to succeed. That is just the cold, hard truth about financial markets.

    I have worked with literally 1,000s of aspiring traders who are convinced that trading is little more than a mathematical equation: apply enough math logic to a problem, and a solution can be found. Not true... not at all.

    Even the mechanical system traders with rigid rules and black & white business plans for trading somewhere along the line face some serious emotional decisions when their chosen system goes into its inevitable deep drawdown. A series of non-correlated systems to create one overall systematic approach will likewise hit points of deep drawdown when seemingly nothing works.

    That is an absolute fact about reality of system trading, where pure math and surpressed emotions are supposed to prevail. When system traders watch their $500k go to $650k and then to $380k in x-amount of time, the laws of math become secondary to Laws of human emotion.


    Veteran traders understand where the logical question of 50% returns on $XXX,000 comes from... makes perfect sense to assume something mathematical exists as an answer. The reality is, there isn't one approach to give a quantified answer.

    For the record, if I were looking for lowest potential risk with best assurance (never guarantee) of profit long-term, my personal choice would be SPX credit spread tactics. I like that approach best of all when it comes to compromised balance of lowest risk = highest (relative) reward. That said, even the use of credit spread trading for methodical growth absolutely demands skill (experience) to make it happen.

    Bottom line? Only a skilled trader in the specific realm they choose to play has hope of making 50% annual returns on any sum of money. <b>LuckyPimp</b> did not state any level of trading experience for us to build further discussion upon. If we assume no experience was inferred, then the answer would be nil hope exists for any profitable potential until trading skills are developed.

    Hope this helps save someone some money otherwise lost to "The Market" :>)
    Austin P
    #17     Aug 22, 2006
  8. Buy 2 bricks of COMEX gold (the 400 oz. ones), and then just wait. At today's spot prices, should be almost exactly $500k.
    #18     Aug 22, 2006
  9. So.. how did backtests that were certain turn out crappy in the real world, and what did you learn?
    #19     Aug 22, 2006
  10. gnome


    I call BULLSH*T! Never been documented over 10 years.
    #20     Aug 22, 2006