I got a friend relatively new in trading, 3 years, specializes in penny stocks, seems to have a laser focus, account size 25k, never has a single day loss of more than 2k and never more than 2 days in a row, here is the caveat since three months we been talking. He has a problem of always giving back his gains, i myself witnessed him on at least 20 occasions make 7-15k per day, only to give it back and go back to his normal gains or 1-2k per day or break even, its never the other way around where he loses a lot of his own capital, its always that he gives back his profits been thinking of investing with him, ride it on the way up, pull out or request he dont trade any more after large gains, both to make me money and help him see what he isn't able to see, or perhaps control What you think?
His target prices are then simply too wide. He could easily adjust for that by taking a moving average of realized volatility and use that metric to position his target levels more appropriately.
let me repeat the statement and the question and elaborate he is a day trader its not the strategy, its that he makes money and then gives it back in a different trade for example trades one trade makes 3k, another makes 8k, up 11k for the day instead of stopping, continues, trades one trade loses 7k or 12k and is back to where he started then the day is over the questions is what you think about the idea of investing money with him to trade, and sit on top of his head, virtually, not literally, and after that big gain for the day, not let him trade further, at least my account that i would have him trade for me so i keep my gains and i am sure after a while he would see that my account off his very own trading is larger than his
You did not mention that several trades were made. The assumption hence was one trade where he made unrealized pnl and then gave it back. On multiple trades it is harder to reckon what is wrong. Would need more information: are we talking about the same asset? How can winning and losing trades be dissected to see whether winning trades have commonalities and equally for losing trades, in, for example, the way entries were taken. Not enough information.
So his problem is taking on huge sizes upon progressing his wins and willing to constantly risk 10-40% of his account on each trade?
Fellas, your right, perhaps i didnt give enough info, let me elaborate, Grant tinker, please man, either fix ur tone or stop commenting He is NEW in trading, 3 years, ok, he knows nothing beyond the single instrument of stocks long or short, remmeber us back in the days, didnt know forex, futures or even options He is good at NOT losing and honoring his stops to the T when he does NOT have a gain we dont want to disect his process necessarily to help, i dont want to spend time or jack shit teaching him he has to learn on his own, what i am simply interested in possibly doing with him is open an account, 25k same size as his and have him trade exact same trades he places for himself his day starts as i mentioned regardless of his process, entries etc etc where he makes 2-4 trades, and of ALL his days, he lands in three spots, either lost 1-2k, or made 1k and stopped, THIS RARELY happens because he always keeps going to the third spot, which is he trades more, makes a large gain up to 10k, i but then keeps going and gives it back, so his problem is NOT retaining profits, and yes to elaborate he DOES realize his gains he closes those winning trades and gets out, its the TRADES AFTER that cause him the losses, of which my idea for myself whenever he is up 5k or more, fuck, even 3k for me on a day i would tell him do NOT place any more trades for me for that given day his lack of experience i believe is what makes him not realize what he is giving back is real money, he sees it as i lost money that wasnt mine so its ok,, hence is his problem,, he doesnt even see things in percentage, again, new to trading, 3 years maybe even 2 as far as i recall since he started seriously placing positions
iam telling you, i have seen these trades in my own eyes, he exits when it comes to losses on first trades where has not made money he honors his stops 100% winners, where the hell did we say that?? 800%?? where the f again are you getting that from?? man, find another thread for gods sake
Are you guys in the US? Have you completed a stats/pattern analysis of daily pnl? What are his current costs, platform and leverage? How does he decide to enter trades; I assume they are all longs?
no, none of that at all, this would be sort of here, trade this account, simple and plain, not an official investment,, most are actually shorts, he filters through ultra high volume stocks for the day and those are the stocks he trades, like MARK, ACB, etc etc, his leverage that he takes is about 1-5, nothing insane
The market we have been trading the last few months is not normal. So many retail punters locked in their homes and all piling into the same 2-3 hot stocks of the day. It’s exactly the way things were in the late 90’s. Enjoy the 100%-400% daily move on whatever small cap biotech mentions “Covid 19” in their press release. This will end in blown accounts and tears just like every other retail mania does.