like i've said, 90% of my expense is living expense and software - same story ever year, learn new strategy, paper trade, go live, market dymanics change, strategy fails, develop new strategy and repeat...sorry guys but i don't live with mommy, i am the mommy...let's see - 75K a year + trading expense and in 4 years you can see it's easy to spend 350K in a few years...i guess all the rest of traders learning to trade live at home or have no families...
I don't think anyone other than yourself would find it funny. I would love to hear from some of your students about all the money they are making following your methods, where do you get together to share balance sheets and discuss your plans for buying the world?
I find it very strange to see supposedly professional traders buying into the 'living off the interest' myth. The official CPI puts the inflation rate at about 4.15% Say you 'make' 5% interest on your capital. Now subtract at least 30% of this 'profit' for taxes. <b>Bottom line: You've lost net purchasing power.</b> How can people not realize this?
You're challenge is that you havn't been able to find an edge, a way to earn a living in the market. If you look at the Trader P&L thread, I think that you'll find an overwhelming majority of the successful traders all have one thing in common....they have decided to become profesional traders. They have access to superior BP, using limited capital, and are able to take advantages of smaller edges in the marketplace. Essentially, they can make money nearly every day. IMO, it is very tough, nearly impossible to make a living as a retail trader. The capital requirements to make it work are significant. If professional trading is not something you can do, then perhaps look at the SPX credit trader thread, those guys seem to do well, might be better for you. Good luck...excellent work on risk management. Only losing 5k in the course of 4 years says quite a bit about your discipline.
Hi Grob With SCT though - staying on the right side of the mkt, how do you know when you have a small retrace, or a reversal. If you see the Aussie dollar a couple of months ago you would see what I mean - downtrend, then retrace that just kept on going way past the 100 day high. You could reverse with every two ticks against you, only to get whipsawed. You can trade channels, to find they are broken and you reverse then the price reverses into the channel again...
take how much you think ull need, double it Burn the first half as part of your "tuition fees" and you have the required amount
Trading is done by proceeding from one level to another in terms of knowledge, skills and experience. After you mention "staying oin the right side of the market" you mention a few of the market activities a trader faces: 1. small retraces 2. reversals 3. downtrend 4..100 day high 5. reverse with two ticks against you 6. whipsawed 7. channels 8. broken channels 9. Price reverses into the channel again. Eight of these 9 items happen every day and number 4 is rare. So, a. where in an SCT boot camp of four weeks (20 days) would you run into these eight items? b. Where would you learn to handle each of them? and c. where would you be using your own money to make money with them? Respectively, the days are : 1 for a.; 6 for b; and 11. for c. To cut to the chase a person could just print out the boot camp materials and do this in a very short while. A person sees each of these items, sans 4, everyday. What is a person to do? I think such items must be defined and dealt with. Defining is a case of writing up a description and providing illustrations of cases. Dealing is watching trading take place for 20 consecutive days and logging the day's activities and debriefing on the days activiities and studying any set of topics that appear to you to go to work to know even more about what you do not know at the time. 1. Small retraces. Small retraces happen during the second half of a gauusain formation of volume. They begin after the first half where volume peaking occurs. They end when the gaussian volume reaches a minimum. 2. reversals. Reversals happen during the first half of a gauusain formation of volume. They begin after the second half of a gaussian where volume minimum occurs. They end when the gaussian volume reaches a maximum. 8. broken channels. Channels only break on one side as a rule the exception is climax runs. Channels are broken only when a retrace to the channel becomes a reversal as the price crosses the trendline (right channel line). Retraces only occur under two circumstances. Full retraces come off the left channel projection and they lead to new dominat traverses that continue the dominant trend in effect and extablished by the points 1, 2, and 3 which have already occurred in time. If an FTT has occurred ( See failure to make new highs), then the small retrace that occurs will lead to a Breakout (BO) of the trendline (rght channel line) and when it dies a reversal will follow and the over lap of the old trend and the new trend is completed. 9. Price reverses into the channel again. This happens after a channel breakout on a reversal the begins as the channel trend line (right line) is breached. The trip back toward the channel is a retrace that follows a reversal. For a rising price the gaussian construct is R to B for the reversal to the retrace. At this point, a decision is required to determine what is next. It is either another R to B indicating the price will trend further down and be a short trend. If a long trend is coming up the gaussian is a B to R. One or two bars are required to determine this. In any event, money is being made all the while. 3. downtrend. This is a channel where the dominant traverse is short and the non dominant traverse is long (see retrace). 4..100 day high. This is an R level. and when price in a long trend fails to breach this value then an ftt is occurring and a small retrace will follow. 5. reverse with two ticks against you. I have never heard of this. 6. whipsawed. This is a CW paradigm term. It is a definition of being on the wrong side of the market largely as a consequence of betting and entering and then being taken out by a protective stop. It is a consequence of wrong betting, wrong protection and being in the market when a person does not know what the market is doing at the time. Do not do whipsaw, ever. 7. channels. channels are prjected into the future at the irst opportunity. they are the envelop of trends and markets are ALWAYS in thrends on at least three levels of fractal annotation. Envelopes of envelopes of envelopes. Price cannot ever escape from these three projected boundaries. All end effects happen at channel boundaries and in between the boundaries money is continually made. Channels are drwan with point 1 being found at the FTT of the prior channel. Po9int two is found at the end of the erversal following the small retrace to the channel Breakout point. That is it is way past the channel BO and at a place of initial declining volume following peaking volume. Point three is found at the end of the next price movement on a non dominant retrace. (See retrace). the volatility of a channel may increase only on the left side of the channel when a dominant traverse has greater momentum than any prior dominant traverse. ET doe not have the capability of inserting illustrations in text. So I just wrote up each of them fro you in such a way that any definition that required a prioor one was following that referral definition. Here you see many other terms you do not know either. I was going to list each one below and then define them too until I ran out of a requirement to do more defining. Where I to do that the post would exceed the ET capability unless I used a series of posts. 4 out of 5 people here think I am bullshitting, etc. That is their problem. I am pointing out to you that you are just an assessor of a method. This occurs before beginner. SCT has 6 levels. Each level has 10 sectors. In each sector there are 5 topics each. SCT builds on PVT which has an identical arrangement of stuff (300 topics). We archive this using two additional levels of detail within the topics. Four weeks of boot camp get people on the road using a critical path approach. Boot camp is an expression Don Wright uses, also, for doing Prop trading. His boot camp is four weeks long after a person has qualified. We take days to qualify too by examining the answers to 180 questions for each PVT and SCT (360) There are four choices per question and if you get an answer wrong you read what is wrong with your answer before being told the right answer and why and then you get to do the next question. We log your reading from location to location(where correct info is kept relative to each wrong possible answer) for evaluation What you are reading about now is learning to trade to make money. It takes work. It is a big undertaking. At boot camp you do homework in the form of drills every night for 19 days and not on three weekends. The consequence is that a person is very rich in a very short time. By reading and understanding this post (4 out of 5 will not understand it) this post you get to know that there is never a time that a retrace or a reversal can be confused. You got to learn that every time price comes to a trendline, you know before it gets there what is going to happen no questions asked. You also get to know ahead of time what is going to happen to price after the BO beyond the trendline. In your post to me about something in OZ, you could have been absolutely sure, in advance, of what was coming up. The market was telegraphing its moves to you ahead of time. Unless you do not have the independant variables to look at on the correct fractal. This is just run on copy for me to take the trouble to make a point. PVT and SCT are the result of 47 years of concentrated effort to take out of the market what is offered just when and where it is offered. It is "unbelievable to losers and people who think I am bullshitting. They form a class of their own here. The fact that 4 out of 5 people think I am bullshitting is the biggest joke of all in ET. The joke is on them as they will find out over the next few years. Only 10% more people than the failure rate of traders have caught on to what I am advocating. That is just twice as many as are successful. It is very logical for 90% of traders to fail. they do not do the work. the fact that 20% of those here recognize that what I davocate is a possibility is good news for this 20%. They can either get to work or just adopt some facets of what I suggest. You have to start to go beyond the surface and do work. Writing down 9 terms that you encountered and did not know anything about is not a good place to be. For me I just rattle off the definitions, arrange them in a learning order for you and tell you where they appear in a curriculum for becoming expert in 20 days of very hard work, if you qualify. Get to work on some approach of your choosing. SCT is probably not for you.