Yeah but don't forget, markets go through many phases so in the beginning you might be profitable because the markets are going your way but later when the market changes, your p/l might change as well. If you can be consistent through all phases, then you are good to go.
Glad to see you guys posting this. I have been seen as harsh when I try to keep newbies away from options, but they figure they learn a certain option strategy and then that's it. They do the math and figure hey I can make 10%/month just doing this simple strategy and in a couple years of compounding I will buy a yacht. Sure no problem; if it takes years to become a good trader, how long does it take to be a good trader and learn everything about options?
Wow, classic guitar it was! I've been looking for it for a long time. I love youtube.. http://www.youtube.com/watch?v=JDxxeXYaZ_o
walter4: This is what I mean by classic gjuitar: http://www.youtube.com/watch?v=SbW4rYYKxhg&mode=related&search= mF
Wow. You have not heard of Richard Dennis or the Turtles? Where have you been for the last couple of decades? May I suggest: Market Wizards by Jack Schwager, chapter "Richard Dennis: A Legend Retires"; The New Market Wizards by (surprise) Jack Schwager, chapter "The Silence of the Turtles" (far too brief) -- Michael Carr and Howard Seidler; and, of course, the just published Way of the Turtle by Curtis Faith (ET's "inflector").
Great books, after reading those books I came to the conclusion that it is not some magic indicator that made these traders but a solid belief in their trading model which made these traders become consistently profitable. Most of the traders went through accounts like babies through diapers but they all had the willingness to succeed. I would highly recommend to anyone who is thinking about opening up an account for the first time and trading that they hold off until they read these books. I wish I had done the same thing but like most of us, I had to learn the hard way. Once the Turtles were trained they went on to make billions of dollars. The Turtles came about because of a disagreement between Richard Dennis who thought traders could be taught, and his partner William Eckhardt which thought traders were born.
2 weeks was the time it took during the first year that they trained the Turtles, during the second round or teachings a year later, the course took just a whopping 1 week and these Turtles went on to make billions of dollars. Some of them are still trading today.
I am 10 years into trading and I am still learning. I figure it will take me somewhere between 50 years and forever to master the art and so that makes me a perpetual student of the markets; and quite frankly that is where I intend to remain. Remember, trading is ONLY about making money.
Here is a tid bit on Richard Dennis: He started with $250 and made soybean trades from his college dorm. Eventually turned that into $100 million dollars. His theory was that anyone could be taught to trade and be super successful. He put full page ads in 5 newspapers once looking for "inexperienced commodity traders" from diverse backgrounds. He eventually settled on about 25 "Turtles" as he called them. He taught them all his secret system and gave each trader $25,000. All of them became successful, some truly successful turning the original stakes into millions of dollars. For years the turtles kept his secret to themselves. Eventually it leaked out. It was so simple it defied common sense. You buy when a commodity makes a new 20 day high or short when it makes a new 20 day low. You are always in the market hoping for a trend. In the mid eighties all his systems went below the 50% loss level and he was forced to liquidate everything. A few of the turtles went bankrupt. The markets changed. They did not trend as well. Dennis now believes that one should start with a system but 90% of one's exits should be discretionary. All systems eventually carry their ruin he believes. Linda Raschke actually coined a trade based on Dennis. She called it "Turtle Soup" If a market made a 20 day high but retreated back into that high within one day, you fade the trade with a stop at the extreme price.
I consider all the losses I have occured in trading to be my tuition. I wiped out my forex account 3 times before I started having consistant positive results. We only learn when we make mistakes. I appreciate this thread and the services you offer. Thank you.