I would like to commend the guests for being so honest. The poll results are quite revealing. I hope that the losers can get into profitability and by next year can be in the profitable corner... Thanks for this thread. Michael B. P.S. I wish the results were in percent to equity though. 1k a day on 10 million is not that much, but I guess there are not many with 10 million answering this poll.
Don't worry, there are no traders that consistently make 100%, not on a daily, monthly not even on an annual timeframe. Not year after year after year. Maybe there are people who make 100% month 1, 200% month 2 and then are being squeezed and suddenly make -95% month 3. Consistency is key.
I would say there are lots of prop traders who consistently make >100% per year on their account equity. And don't say "if you double your money every year you'll own the world in x years". I'm talking about a scenario where a guy has $25,000 or $50,000 in his account, makes 10 grand a month and sweeps the profits regularly. Not that uncommon.
Maybe the lower risk of a smaller account size and knowing they have funds/money outside of the equity account helps them live through longer drawdowns without being squeezed/forced to cover positions.
makloda You are missing a HUGH point. You state that (paraphrased), then after a couple great months the trader gets slammed with a 95% loss. ROOKIES trade like that, winners do not. Traders that are worth their salt have moved beyond the big losses, a BIG part of being a consistent trader is not giving back profits , rookies do that, that is part of the trader education. Be advised: Before a trader will become a winner he/she MUST first learn how not to lose. Part of the learning process to to steel yourself to small losses, soldier on, BUT do not be a fool. Using STOPS is probably the biggest difference between winners and losers. now i ask you. Would a wise person give back the paycheck at the job? then why would a trader do that? Stops separate the boys/girls from the gent/Classy Lady. Ok, lets get ready to go shopping and make some bacon. (go to store to GET some bacon, NOT to give the store the bacon you bought last week). PS, I think "SMALL LOSSES" needs to be defined and WHY one must endure them as NORMAL everyday ditties just like eating to survive. Taking any trade has a possibility of being a win or a loss. The trade must be TAKEN in order to get to the Oceanfront property. To not pull the trigger on a setup, pattern or whatever is nothing less than the trader being FEARFUL of a loss. A trader not pulling the trigger when a opportunity arises is nothing short of a trader needing more time to become "AUTOMATIC" in entering the trade and no fear at all. Then id indeed mkt action says the trade looks, feels is bad.........GET THE HELL OUT> YOU will never ever be 100 correct, losses are as normal as motherhood and apple pie. Screw the bit about loving losses, i hate them, but i do not consider any loss as a failure of self. A loss in normal, DEAL WITH IT and move on. Good Luck
"ROOKIES trade like that, winners do not. " Well then you have to tell me how the "winner trader" made the 100% in period 1 and period 2 in the first place? Likely by taking on big (but calculated) risks. There is no risk free 100% in the markets. Striving for abnormal returns forces any trader to be financially and mentally capable of enduring deeper and longer drawdowns. My point is that most traders lack both, the financial and mental means. That's all I am saying. What point am I missing?
Please excuse my ignorance,as i am a long term relative value" trader,but when we speak of traders knocking home 100%+,what type of leverage are we talking about??? I would think any analysis would have to begin there
What you say should be striking obvious, but obviously it is not for quite a lot at ET and in the markets. There is no free lunch. You are trading risk. People tend to forget it, espec. if they win big. You have to pay for it and you pay in risk units. The problem for most is that they do not know how much they pay. They are not able to estimate their risk fairly well.