I know a little bit about Franz, but I never heard down that much, shiiaatt! Did he come back to win? I have heard he avg a 100k a day, but takes some heavy drawdowns, scaling in and out
My favorite guy gave the indians $26.00 and some beads for Manhattan. Then there was the Louisianna Purchase from the French and the Alaska trade with the Russians, not to be scoffed at.
The scaling , adding, subtracting as the day progresses, is the savior when trading that size. It is essentailly an old market maker technique. One only gets hurt when ranges are very tight and commish overwhelms.
yes he did win that day. i think he ended up about 20k positive. he likes to say he has a lot of bullets. he will usually swing 50-100 contract lots but i have seen him do up around 3000 contracts between both of his accounts. the guy is amazing but humble. no ego at all. he mentioned today that the cme has told him he is the biggest retail es trader they have. the most amazing thing to me is he always goes against the market. he shorts strength and buys weakness. that means you almost always go negitive before you go positive.
Vhehn, Isn't that the way Livermore did things? Sell Strength and Buy Weakness? I wish I would have been at the Vegas expo to meet Franz with his audited statement in hand. My trading buddy said he was the only real deal there. I have actually thought about taking TI's course, but if I have to iron balls like Franz I would be cooked !
i was at vegas. i have since taken the free trial to his room. i am probably one of the biggest skeptics of gurus on this site(just ask proflogic) but franz is the real deal. there is no faking it. he puts limit orders out there ahead of time and lets the market hit them. his real time p$l screen is in full view at all times. he does not hide when the p&l goes negitive. he just fights his way back and if he has a losing day no excuses,just says we will get them tomorrow.
so much for the conventional wisdom that you "never average a loser." that applies to retail, but it really seems like a cliche the pro's put out to keep people off their secret. with enough cap, anything's possible.
investing and trading are different! What eddie does is similar to buffett. he finds fundamentally undervalued companies (not stocks...if you undertand the distinction i am making there) like K-mart after ch.11. he buys very large percentages of them to be able to have a voice on their boards and have a hand in how the company is run. he TRULY becomes and owner of the company, not just one of millions of shareholders. they truly can move the stock price by their actions becuse they change the actual value of the company and its asstes...all we can do is go for a ride on it.
to expand on what i just wrote above...these guys arent TECHNICALLY averaging losers...the same way you and i think of it. so dont start averaging your losers just yet! they know that by buying at certain prices that they would still be ok becuse they understand that if liquidation occured, that they could sell the underlying assets (after debts are paid) and cover their costs. They calculate the breakeven, and do thinks like physically survey the land and its value that buildings are sitting on. So if they calculate breakeven at say 1.00 per share....anything below that price is a gift. so if the price keeps going down, they TRULY ARE buying the same assets, only for less money. Guys like you and i for example often trade companies at 50 to 100x book value....so a different principal applies. we are speculating, they are investing.