Ah ahhhhh! Now the truth comes out. The experts agree, the ability to predict direction is key, no matter what you do. Thanks for the confirmation fellas. _________________________ There is a problem in trying to dialogue as an amateur, with sophisticated, expert, long term experience and opinions. Plus I find the intricate multi- layer strategies frightening. I don´t have the instinctive feel, and even at this point, do not understand some of it. The question in my mind, is all this necessary? I mean I admire a famous piano player ( though that has gone out of style now ) Especially in those movies, where they get up on a stage, sold out to an expensive audience paying $50 to a $100 bucks for a seat. Yet my limited experience in the well rehearsed piano player field, is watching some alcoholic piano player, working the hotel bar room scene every night with mood music. Sure he is knowledgeable, gifted and has a lifetime of experience. BUT how much is he actually making from his skills? There is the rub, in trying to deal with the experts on here, who I admire for their knowledge, years of experience and skill. Something I cannot do, nor am I yet convinced this is the way to go. It comes down to RETURN ON INVESTMENT per annum. What are they actually making in dollars and cents? MARKET WIZARDS the copy I have here, says around 40% per annum makes you a MARKET WIZARD. That said and taken as a ball park figure, isn´t very good. Mind you that is an amateur´s opinion. Lets say I give ATTICUS, or OPTION COACH ( no offense guys ) a $100,000 to manage for me. Do you think they will earn $300,000 a year with it? I don´t know and all experts are very careful not to reveal their earnings, or lack thereof. But with $300,000 a year, and one third goes to the tax authorities. Keep my original $100,000 and we have $100,000 to split with my EXPERT OPTION TRADER money manager. Say 50 - 50. So my net take on a $100,000 would be 50%. If I took that as a dividend, I would pay 15% in dividend taxes. which would leave me with the Market Wizard standard of 42.5%. Thereabouts. Is this good? Is this even possible? Until these expert symphony orchestra knowledgeable class option traders give us a rough idea of their RETURN ON INVESTMENT, there is no way to judge that their expertise has worth in the market place. After all the USA economy and government is based on the dollar and making money. That said, I tend to go to the premise of ( the money is in legally avoiding taxes ) Lets say you made $300,000 but it was for a Chartitable Foundation, or you started a church and religion or something that was tax free. Then you start to roll up the money. Comments?
Falconview, two of the best traders that ever walked the earth (Soros and Kovner) have earned around 30% a year over lengthy period of time. That comes out to 2.5% a month compounded. And these two guys are the best. So use that as your yardstick. Do you think you can make more money then the two greatest traders ever? It's a serious question. Mull over that for awhile.
Serious? Yes, but incomplete. Scale is often a limiting rather than an enhancing factor in the ability to make a large, consistent profit.
So you expect us to take your money and make a 200% return in a year (turn $100k to $300k). And for that effort you expect us to take $50k of that as a split. Mighty generous of you... First of all, where do you figure that experts are making 200% a year? Second, of all, expert option traders not only don't owe you any personal return on investment numbers, we actually do not owe you $#it. Instead of demanding things from Howard, atty and others here, read what Maverick wrote above, stop wasting time with such long-winded posts and actually focus on trying to learn to trade. Everyone here, including Howard, has put in years working at whatever strategy or experience they have accumulated by simply working at it rather than sitting back and expecting the world to just drop it at your feet. Given your age, I would think you either have put in the time already or are still searching for that Holy Grail to show up in your mail.
Howard, he said over a LONG period of time these guys are making 30% a year on average. Scale is not the issue here. Wait until 5 years of month to month trading and then we can see what your annualized returns are. Less than a year trading is not considered a track record, it is a start. Everyone can have a great year, it is the guys who have a good average 5-10 years that make it.
I respectfully disagree with paragraph one. Scale is always an element of expected returns. Retail traders can do some stuff without killing the market that the big boys cannot. I agree with paragraph two. My results have not experienced all market conditions and sever events. And even if I had, it is still only anecdotal.
Yes, but scale also works for them. For one, they can diversify and scale their positions much better then a small account. They also tend to create trends which other traders will piggyback and therefore lift their returns. Finally, they are not trading iron condors, most of their money is made in currencies which can easily accommodate their liquidity. Falconview, you are really reaching here.
I have been asked by friends, family and acquaintances to manage their money with a broad range of incentives from generous to insulting. I have not and will not manage other people's money. I value money far less than relationships with friends, acquaintances and family. There is risk and I could mess up. They may forgive me, but I could not forgive myself. I can see no opportunity-benefit to managing small accounts for other people, even if I were so inclined. It is not good compensation for my time and effort, especially when you add bookkeeping and legal requirements paperwork. The account size you mention is the second smallest I have been offered. The smallest was $10,000. The largest shocked me. I'm convinced the ones you mentioned have had similar experiences.