I have found this post in another forum which was geared towards investing in general (Kyosaki, Burley etc......). Problem being there were no answers or discussions so I hope elitetrader.com can come to my rescue. """""""I'm having the current "problem" (or challenge). I have had great difficulty executing without significant slippage above 300 SP eminis (at the market execution). To my system, "significant slippage" is more than 0.5 points. I trade 5' charts and aim to make 4-6 points per day consistently in some 10-15 trades. Most trades are either 1.0-2.5 point losers, breakevens, or 3-4 point winners, with about 60W32L and 8Bk. Some "knowledgeable" people tell me that I have hit the ceiling for my system, and that I should stay at that level or less. Of course these "knowledgeable" people have never had the rates of return that I have had. Anybody with any knowledge of money management knows that one can grow an account of $5K to $1M in less than 80 trading days with little %risk.(I took a bit longer and with a bigger starting account, for conservative reasons, but the theory stands). Any suggestions to take my trading to the next level?. (i.e.: 10 times the current position size). """""""" Now the area I would love to discuss is the best money management technique to turn $5,000 to $1,000,000 using the Emini S&P's. The poster claims this can be done in 80 days with little % risk. Is there an age old theory to do this? If not, what is the best way to do this? Are there any Guru's that have this money management technique in a lecture series for $5,000? Otherwise are there any good books on the topic of money management and position sizing? Personally I have turned $20k into $100k in 11 months trading only the ES. Looking back I put this mostly to good fortune. When I was at $20k I didn't care if I lost the money as it felt like play money, but now that my personal programming tells me that $100k is real and not for play I find that I haven't been as profitable. If my next goal is to reach the $250k mark, what should I do now? Risk the $80k in profit on one trade? Risk $40k on two trades? Risk $20k on four trades? Or should I head to my local casino because the drinks are free?
You are in the same position I will be in shortly. Cowboy tactics sometimes works in your favor, but for me, I will have to tread slowly at first until I can start phasing positions in and out. I'm not sure what I'm going to do with my first million, but I'm definately not going to stop there. I'm thinking I can get up to around 500 contracts before it makes more sense to go to the CME. In any event, I'm going to need places to spend all this money I'm about to make.
"Anybody with any knowledge of money management knows that one can grow an account of $5K to $1M in less than 80 trading days with little %risk.(I took a bit longer and with a bigger starting account, for conservative reasons, but the theory stands)." get real.you will be lucky to last 80 days with that kind of silly thinking.
80? I've heard other people give me 8. Why doesn't ET start a betting pool on how long it will take me to wipe out? I'm sure a bookie can set it up and give people some great odds. What do you say people? How about it? How about some betting on me burning up? The choices are ... First trade First hour 1-7 days 1-2 weeks 1-2 months Never
Leave it to you to turn something not even directed at you into something about you. Diagnosis - NPD.
aphexcoil, 685 posts since 8/2002, you can't possibly have time to trade. You'll never tap out at that rate.
Mr. 0, 1, 1, 2, 3, 5, 8, 13 Only you would have that type of insecurity complex to actually be so bothered by what I do. Go spend some of that money you've been making and have some fun and don't worry about me. I can take care of myself.
Quah, don't take it personally. In about 2 weeks this aphidiot will be PM'ing you, "What are those times again?"
Any chance we can actually discuss money management and position sizing? The post subject was to get some attention, so maybe we should start with a more conservative scenario. What would be the best way for a person to double one's account in a 12 month period given he has a 50% win/loss ratio and a 2/1 risk/reward ratio?
Johnny, Why are you having problems with size -- if you are only trading a 100k account??? I think that account could contain two commas before you hit any real resistance in a market as liquid as the ES minis... PEACE and good trading, Commisso