You should be able to earn 13.89 dollars a day conservatively. If you can do 300-400 a day with 50K you should have a few trillions in no time.
so, since July 2008 when you started posting here you should have made several milliondollars off the 50k starting capital by now, CONSERVATIVELY speaking and keeping your return profile stable. LOL. Looks to me you pulled your risk management straight out of your arse. Enough Said Thanks for the laugh though.
Why is almost everyone bringing up compounding... ffs, no one is saying that you can compound gains forever at a high rate, yet that argument keeps creeping up....you'll have a billion in 198 weeks, blah blah blah...what, you can't conceive the possibility that someone can actually net an average of 15 cents a day trading 2 contracts of CL for example WITHOUT COMPOUNDING? Not every day, but on average? I'm not *I* can or do (I don't trade CL) but I can certainly conceive that some people, maybe 1-2%, can... P.S. NOT COMPOUNDING CONTRACTS
lol, is this the NEW average IQ here on ET? I remember this has been different some time ago. % DOES matter, your 10k friend yielded a much higher return. How do you compare the performance of AAPL vs RIMM other than in percentage terms? Everyone in this industry compares results on a relative basis in terms of percentage return. Get a fxxxx life.
Those who state or imply compounding are not in the business of trading. People sweep axcess profits form accounts and put hem in largr capacity markets. No one makes a fixed amount per day on a trading equity curve. Why that is also unknown to these types is kinda silly. What is with the OP? Does he also fall into the ignorant category?
yes actually we all agree with you. Its more realistic to assume a 1k return on a 2k account, imagine what you could make every single day on a 50k account. But then you also have dog races, horse racing, casino, heck, you could become a pimp buy yourself some prostitutes and rent them out.
why not? You would be dumb if you did not compound. If you can average 1-2% a day (LOL) then you should definitely max out the edge.
you are not from this world for sure. What is your large capacity market dude? P.S. You probably wanted to say that "Those who DENY or DISAGREE with compounding are not in the business of trading." Otherwise your post contradicts itself ;-) Every system implicitly compounds size by constantly adjusting to current account balance, at least a system based on standard risk metrics.
You obviously didn't read what I said. I don't know, some don't like big swings in their P&L, maybe more conservative by nature, maybe their edge is very tiny, they're paying off a mortgage and don't want to increase risk, who gives a shit why they don't compound...
and you did not get my point. If you can average 1-2% a day then you should plow all your excess capital into this because its probably the highest yielding return, why would you not want to employ every last penny in this as long as you generate such returns (I claimed before this is a bogus assumption to start with). You can always service debt later that costs you about 7-8% a year. Thats the same principle how treasury managers in corporates decide how much to allocate to the repayment of debt vs re-investment in the firms own equity/capex. Very basic very simple concept.