Buying a trend line break via a demonstration of strength with a buy stop above resistance, initial stop placed where previous resistance should hold as support in a trending move, as the position breaks out nicely, stop is moved below the breakout level to help avoid a shake-out if price comes back to the retest the breakout level (which is very common and frustrates the heck out of noobs who donât understand trade management), then adding to a winner as price breaks each resistance level (adding on actual demonstrations of buying strength). Wow, that is just awesome trading. Great post, OD!
When I bump my clients... I have to make it as subtle and as inocuous as possible. Trading is all about the five inches between your ears. They hire me for this. And I am very calculating about it.
It's not so much an issue of costs, it's having to deal with people and spend time on boring shit. Running a fund is running a business, and running a business is boring and has a lot of responsibility. Clients are annoying and demanding (as is their right, given the fees they pay). The nitty gritty of running the fund distracts you from the art of trading. The publicity is unwelcome, so is the regulatory scrutiny. Paying glorified paper-shufflers large sums of money at no risk to themselves tends to stick in the craw. The only possible reason to deal with all that crap is if for some reason you think it's rational to sacrifice a lot of your life and freedom in order to get very rich. Since a few million is enough for financial independence (especially if you can compound at 20%+ per annum anyway), it is completely irrational to run a hedge fund if you are already at that level, unless you have some kind of project which requires large sums of money. In short - it's better to have a fun relaxing life making 6 or 7 figures per annum, than to have a boring one full of hassle in order to make 8 figures+
An American investment banker was at the pier of a small coastal Greek village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Greek on the quality of his fish and asked, "How long does it take to catch them?" The Greek replied: "Only a little while." The American then asked why didn't he stay out longer and catch more fish? The Greek said he had enough to support his family's immediate needs. The American then asked, "But what do you do with the rest of your time?" The Greek fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play cards with my friends, I have a full and busy life." The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Athens, then London and eventually New York where you will run your expanding enterprise." The Greek fisherman asked, "But, how long will this all take?" To which the American replied, "15-25 years." "But what then?" The American laughed and said that's the best part. "When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions." "Millions ... Then what?" The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play cards with your friends."
If you are trading futures and are a profitable trader, then 1000% in a year is doable. Hard, but doable.
There are some people in this world who can grow up in the gutter and be a co-owner of a basketball franchise team There are people who can be born to millionaire parents and wind up as a junkie living in a NYC alley somewhere stealing cat food from Whole Foods For some people, they need $500K to make a decent living For some people, they only need $5K Not everyone can be great