Transition from Knowledge to Acceptance

Discussion in 'Psychology' started by qlai, Oct 17, 2020 at 8:43 AM.

  1. qlai


    Wow, I think this might be the best blogpost on trading I've ever come across.

    NOTE: I am putting this under psychology on purpose! If you don't believe his trading results, that's not the point. Maybe he is a degenerate gambler, fake guru, scammer, or all of the above. I don't know. But I do think his advice is invaluable and could've only been written by a person who went through all the struggles trading entails.
  2. MrRenev


    I'm dying :D:D:D

    "Kris Verma Students - Discord Room

    Then we would love to have you in the room!

    Fee for joining is $1000 USD for the first month, then $100 per month onwards."
    rb7 likes this.
  3. volpri


    Trading is a process and working that process with precise execution is what it is about. Over and over.

    Discipline is doing WHAT you have to do, WHEN you have to do it, and HOW you have to do it, regardless of how you “feel” about it, along with paying attention to detail.

    P.S. Mr Verma learned that lesson if he is for real.
    Last edited: Oct 17, 2020 at 11:05 AM
    trader99 and qlai like this.
  4. .

    Among the responses he made to reader questions, Verma says that having occasional 50% drawdowns is simply part of his system. :wtf:

    I think very few of us could trade this way...

    From his responses:
    "With my system, big drawdowns are inevitable. I use very wide stops and a small percentage of the time, I will have to eat a big loss. As my profit cushion has grown, the drawdowns don't sting as much, however when you are growing a small account, it can be devastating. I recall early in my journey I lost half my account in a week, going from 20k to 10k while taking a few max losses. It wasn't from poor execution, it was simply part of my system. It was the first time in my career that I was completely unaffected by a loss. I had fully accepted the fact that drawdowns and max losses are a part of it and there was nothing to do other than keep grinding and executing my plan. This was the moment where I knew I had it. If a 50% drawdown this early in my journey didn't phase me, then nothing likely would. Throughout my career it was always the max losses that I couldn't deal with. I would always fight them and try to make the loss back or turn it into a winner. That approach is very dangerous because in most cases it will work out, but eventually you will run into something that wipes you out."
    stochastix likes this.
  5. qlai


    And probably shouldn’t. The reason I look at these strategies is for below reasons:
    1) They require very little capital. So if I allocate just 10-20% of my capital (better yet profits) and blow up, I can survive. But if I do it right, the gains are ridiculous.
    2) They are un-correlated to the overall market.
    3) I understand why there’s an edge there.
    4) Very high win rate resembles options “income” strategies as far as risk:reward is concerned. So good cash cow if you don’t get greedy.
  6. They


    No doubt the, almost ready to quit, meteoric rise, double or nothing, DotCom 2.0 stories do have an appeal.

    But 50% DD of your equity has nothing to do with the system/method one is trading. It has to do with being over leveraged.

    I hope now that he has hit a new equity milestone he begins to deleverage and focus more on capital preservation. If it's real, hats off to his good fortune.
    trader99 likes this.
  7. qlai


    I don’t think it’s possible with his strategy. Losers are magnitude larger than winners, so a statistically normal loosing streak will get him into large DD, right?
    trader99 likes this.
  8. They


    If an account has $10K and the trader is risking $5k, yes that's a 50% DD allowance. Which is crazy risk.

    But let's say by his expert trading ability or good luck he has taken that account to $15K. If he is still risking $5K it is now 30% DD allowance. One can extrapolate that out and see as the account increases in size - the % risk becomes less.

    The fact that this trader has maintained his 50% risk exposure just proves that he was over leveraged from the beginning and has continued to trade in that same manner and it has nothing to do with an actual trading strategy. It is only a double or nothing(-50%) wagering method.
  9. SunTrader


    Amazing what impresses people these days. Aaaaamazing.
  10. Dazz


    I se concentrated scam in a bag; any one actually seen or measured any trades? Can anyone verify or authenticate performance? Scam based on temptation: dangle huge profits, charge a huge amount to join, see who is stupid enough.
    SunTrader likes this.