If you were going to make 1 mil in the next 12 mo's, would you change your trading?

Discussion in 'Psychology' started by ElectricSavant, Apr 1, 2006.

  1. ...?
  2. or at least buy a new car?
  3. Hi Electric, where do these questions come from? :)

    Sure, I'd double no triple my position sizes so that I would make 3 Million in a year:)

    Yawn..... I'm off to bed soon.

  4. I just was curious how a trader handles money management and I thought to ask it in a Savantish way to bring it out...thats all...

    go to bed granny.. :)
  5. LOL, no problem. For a while I was up late and I would notice you posting and the threads were a nice divergence (think you were trading the Yen or something).

    Anyway, as for MM... well.. if you told me I'd have 1 mil in a year and no appreciable draw downs, I'd up the position size as much as I could. But does such foreknowledge exist?
  6. lol
  7. Well...

    The idea here is
    • expectations
    • confidence
    • illusion
    • reality
    • vision

    Not necessarily in that order

    I am in hopes to hear from those that are there...that have been there...and have the vision to get there...

    as far as foreknowledge, i think every trader has the vision...
  8. is there anybody that would REDUCE their size if they had a larger yield than they counted with? percentagly (is that a word?) speaking?
  9. Michael:

    You really should know better.

    All any goal requires is to work backward from your target

    If you want to make a million dollars, you start by looking backward one step at a time. Each step requires that you answer (correctly) a question.

    For example, your goal is to make a million $ trading. Alright how long do you have to make the million dollars? (say 1 year?)

    Next question, how much do you need to make on a weekly basis to hit your goal? Answer.. you divide 1 million into 50 parts (weeks) and you know that you have to average $20,000 profits each week to hit your goal.

    Next question, "which market(s) do I know well enough to trade and can provide sufficient liquidity to permit me to make a million dollars over a years time"? (Answer...I know the S&P500 futures market well enough and I know it has sufficient liquidity")

    Next question, "Which trading approach will provide the best chance of making $20,000 dollars per week?" Answer....?

    Next question, "What size trading account do I need in order to fund my trading account?"

    Next question "What size positions do I have to put on in order to make $20,000 per week?"

    What is the minimum profit target on a per trade basis necessary to hit my goal?

    What is the maximum stop loss I can tolerate and still hit my goal?

    Are you getting the idea?

    Thats how its done. Simple.

    Good luck
  10. That's exactly how you waste an edge.
    #10     Apr 2, 2006