Best of luck. I'm in the same boat (not a scientist and not with 300k). So it's more like I'm in a canoe.
Anyhow, I have some actual money that I would like to proliferate into a million over the next two or three years. I think that is a realistic goal starting with 300k. Do you have a written trading plan with rules that turned $300K into $1 million in 3 years or less when back tested through a few 3-year periods? If not, then why do you think that's a realistic goal? What is wrong with science, Dr, you say? Well it is unbelievably slow for my taste and I have been labeled a rogue by multiple bosses, accused of thinking outside of the box too much. IMHO, this does not bode well for an aspiring retail trader. The big price action footprints left behind by institutional traders and investors have looked pretty much the same throughout market history. This is a positive expectancy framework you can take advantage of as a short term trader. I wanted to write a journal to help me keep track of what I am doing and most importantly get some feedback on my methods. Tell us your methods and we'll give you feedback! Over the next few days I am going to be contemplating my entry strategy for this pile. So you have an actual entry strategy developed that you're currently contemplating? Or do you mean you're contemplating the development of an entry strategy? The biggest lesson learned with this small account -> Set rules and FOLLOW them Yes! As a scientist you know full well that all experiments require strict adherence to protocol. You cannot let personal bias, or interim results cause you to change the experiment mid-stream. Same goes for a "tested profitable" trading plan. It only stands a chance of profiting if you stick with it. That aside, I do not think it a good idea to start off shorting, although I do find negative trends easier too predict for one reason or another. What are people into for midcap industries? I don't want to get my fingers in too many pies to start off, would it be advisable to start off with indices and big high volume guys like AAPL? RED FLAGS: You have a personal bias (trading long rather than both directions), you believe you can predict price moves, and you don't have a trading plan. This brings us back to "Why do you think turning your $300K into a $1 million in three years or less is a realistic goal?"
Decker 1 - Anyhow, I have some actual money that I would like to proliferate into a million over the next two or three years. I think that is a realistic goal starting with 300k. NoDoji- Do you have a written trading plan with rules that turned $300K into $1 million in 3 years or less when back tested through a few 3-year periods? If not, then why do you think that's a realistic goal? Decker Reply- I have prepared a general plan. First of all I am flexible time-wise, I do believe that I said I did not quit my day job in my post. I am taking some time off right now, helping my Grandmother out that just lost her son and is not able to function on her own right now. I am the only one in the family with a flexible enough job and compassionate boss to be able to do so. Now that we have that cleared up, I know where I am going to place a majority of the money and work up to full steam ahead using percentages, and refrain from brash decision making since I do not wish to loose out (too big in the short run anyway). I have written plans that have backtested close to my goal using various mutual funds, etfs and options both coms and secs. As long as I don't need to withdraw a large percentage out at some point in time, no one flies a plane into or bombs anything significant, or I don't in some way cease to be, before the three years I do believe it to be a reasonable goal. Decker 1 - What is wrong with science, Dr, you say? Well it is unbelievably slow for my taste and I have been labeled a rogue by multiple bosses, accused of thinking outside of the box too much. NoDoji- IMHO, this does not bode well for an aspiring retail trader. The big price action footprints left behind by institutional traders and investors have looked pretty much the same throughout market history. This is a positive expectancy framework you can take advantage of as a short term trader. Decker Reply- Yes, I realize this, I have owned my share of mutual funds. I am wondering, waiting 9 - 15 mos for your mice to be genetically backcrossed to the point it is acceptable to use them in an experiment, does that not seem like long time to have to keep busy while you wait to work on your goal? Or how about, waiting 6 mos to a year for grant money to come in so you can do the same experiments you already did to prove to your boss that he is in fact the one that is cookoo, at least thrice more times yielding the same results and then write a professional paper after which will take another 6mos to be published is not a long and tedious process? It is my understanding that financials will become mundane and boring, but the part that intrigues me is that once I am better able to navigate the seas; my life will not be run by someone else while I sit and wait to butcher stinky mice only to have my data messed with until it fits what the big guy wants it to say (not cool in my book, but I still work there, just in case). I am not the type to haphazardly exit the box esp. in my work. I do not come up with and or execute cockamamie ideas that don't have a chance of working, unless it involves cooking (which usually comes out pretty good). I have been trained to check and recheck and check again, that my rope is going to hold me before heading down the cliff. As they say scientists do it over and over and over. But yes, I see the benefits of securities, etc having staying power with 'the big guys' of the finance world. Decker 1 - I wanted to write a journal to help me keep track of what I am doing and most importantly get some feedback on my methods. NoDoji- Tell us your methods and we'll give you feedback! Decker Reply- I plan to when I get going! Still working on getting stuff (as in money) moved around and planning as mentioned above. Decker 1 - Over the next few days I am going to be contemplating my entry strategy for this pile. NoDoji- So you have an actual entry strategy developed that you're currently contemplating? Or do you mean you're contemplating the development of an entry strategy? Decker Reply- I apologize that was a little vague, obviously, or what I hope would be obvious is that I am not going to put all of my eggs in one basket, hence the word strategy as opposed to point. I have a few, well more than a few strategies for entry points using swing and day trading time intervals. These I have been practicing on paper and have grossed 5k in the last two weeks starting with 100k using my newer and older strategies. I will probably be perfecting them for quite some time, but I would not consider that a bad start. Decker 1 - The biggest lesson learned with this small account -> Set rules and FOLLOW them NoDoji- Yes! As a scientist you know full well that all experiments require strict adherence to protocol. You cannot let personal bias, or interim results cause you to change the experiment mid-stream. Same goes for a "tested profitable" trading plan. It only stands a chance of profiting if you stick with it. Decker Reply- Scientists do it over and over and over! Decker 1 - That aside, I do not think it a good idea to start off shorting, although I do find negative trends easier too predict for one reason or another. What are people into for midcap industries? I don't want to get my fingers in too many pies to start off, would it be advisable to start off with indices and big high volume guys like AAPL? NoDoji= RED FLAGS: You have a personal bias (trading long rather than both directions), you believe you can predict price moves, and you don't have a trading plan. This brings us back to "Why do you think turning your $300K into a $1 million in three years or less is a realistic goal?" Decker Reply- I guess I used the wrong word, let me make it clear that I do not predict the future, but speculate and in this specific case using candlestick patterns. In the past, the charting tactics I had been using were working better for speculating a downturn than patterns that pointed to positive reversals and continuations. I guess I really have to be more clear. I am not ruling out shorting, I simply do not want to get carried away on margin before I get a good grasp of how to use the platform I will be using, fees, efficiency, etc. I don't want to loose out because I am not EXACTLY clear on the pieces I currently do not have access to. Which should not take long for me to learn. I have been using margin on my paper account, but I want to be sure I have the easy stuff down when it becomes real before I get into borrowing other people's money, if that makes any sense. So, I think if you look at my replies you will see why I might think I have a pretty good chance of ending up somewhere in that area around that time, unless something crazy happens which we all know could in any facet of life, that may end up affecting one's ability to trade in some way (you don't get the grant money if the reviewer thinks there is something that could go wrong that you have over looked other than the bottle of picric acid you have been meaning to call the bomb squad about). Thank you for the critique (no really I get stuff like this in the lab all the time; makes ya think, u no? ) have a great week
Maybe this was already discussed, but what instruments / asset classes are you trading in ? Equity Options Futures Futures Options Forex Forex Options Just plain equities
50% return per annum 3 years in a row right off the gate as a new trader... would be an astounding, awesome, stupefying, mind-blowing achievement.. in theory it's possible.. a realistic goal ?...i don't think so... oh wait..you said 2 or 3 years.. well in 2 years that's 84% annual return..hmm still not realistic.. I'm sure you'll do well...