What's the fastest and SAFEST way.....

Discussion in 'Professional Trading' started by sbn, Jan 10, 2006.

  1. LOL! Actually, they're found together quite often on this site.

    The problem with inexperienced traders is that they are lacking either money or patience, and unfortunately, most often they are lacking both.
     
    #11     Jan 10, 2006
  2. sbn

    sbn

    No, all I am is curious. What I am basically saying if you were or are given $40,000 in one day and one day only to trade and the objective was to earn $2000, once all day, what would you trade? When I say safest I mean basically something you would feel fairly comfortable getting into.
     
    #12     Jan 10, 2006
  3. Oh.

    I have no idea. On a one-off basis, I imagine that the "ideal" market would vary from one day to the next.

    Good luck.
     
    #13     Jan 10, 2006
  4. That's quite different.

    Perhaps an idae worth to try is you could think Oanda forex.

    Using the highest margin ratio 50:1, place minimum margin deposit into one of your sub-account for trading , transferred money from your main account which is not for any trading activities.

    If a bid for long or short is corrrect and its trend is long running for the day, you'll win some good money. If a wrong bid, the maximum loss would be only the money in the sub-account (???), then start the process again.

    :confused:
     
    #14     Jan 10, 2006
  5. stfreak

    stfreak

    so u aint talking about trading, u r talking about gambling. what you describe, is the balls to the walls modus operandi, that will kill every trader in the long run.

    trading is about riding the edge, and the edge works only with the law of big numbers. if you play your hand only one time, your chance to make a certain amount of $ is equal to the risk of loosing $.

    you have to have an edge and do the same thing over and over again, with small size. the more often, the more $ you will make.

    doing a play only one time is like playing poker and betting your pot @the first hand: either you double up, or you loose it all.

    like postet above, it´s a silly question and it doesn´t have anything to do with trading. period
     
    #15     Jan 10, 2006
  6. You are literally better off playing the 65% play at the roulette tables.

    Take $4k out of your $40k, pick two of the 3-to-1 payout areas placing $2k in each... and hope you get the 65% luck. You'll lose one of the $2k bets, but the other one wins $4k..... giving you $2k net profit.

    Why spend an entire day gambling for $2k when you can do it in 2 minutes? (with better odds too!!!)
     
    #16     Jan 10, 2006
  7. dac8555

    dac8555

    if you have 1 day and 1 day only...expect to lose it. you wont learn how to read the market like that for years and years. nobody with any experience would try to tell you he knows how to do it either.

    If you NEED the $2000...dont put it in the market.read this.."YOU WILL LOSE IT" i guarantee. you have mutlibillion dollar institutions that take our money every day.

    Take $100, buy the "market wizards" books, "trading for a living" "reminiscenses of a stock operator" and"how i made $2 million in the stock market" if you have anything left over buy a coffee.

    the greatest investment you can make is time to learn how to make your $2000...not gambling it away.
     
    #17     Jan 10, 2006
  8. If you were able to generalize to the point of considering what 40,000 could do for you were you a trader (holds either more or less than a day) or even just a position trader, you would find that your average daily return would exceed your expectations.

    The more time you spend in the market, the more practical it is to have the higher money velocities that you speak of. As a person develops a higher money velocity equities curve, he has to more and more focus on keeping his capital working and not on the sidelines. This is a view related to equities.

    For commodities, it does turn out that novice traders must only trade in no risk market settings. The very lowest risk settings turn out to be very high money velocity holds. There is also another constraint in the mix as well, however. A novice would be required to only trade the minimum capital in these highly leveraged settings. It may sound kind of paradoxical to be a novice and only trade safe high velocity trades with smallest capital allowable but that is just a way to let the necessary time to pass for observing from the sidelines when the criteria is not met. The sideline time is invested to learn how to become competent in being in the market greater and greater %'s of the time available.

    Any intermediate trader can take the 2,000 a day out of ES, but it only takes about 10 contracts (@ 2k, each) to do that daily and not hold overnite. This is simply 4 times the long term average of that done by ET traders presently.

    Most likely for trading 10 contracts of ES daily, the trades would be in a range of 2 points net to a 1/2 point net. To hold for 2 points is a challenge for most and it is difficult to not make less than a 1/2 a point on any trade well taken.
     
    #18     Jan 10, 2006
  9. buy 200k shares of a stock and immediately put in on the offer a penny higher.
     
    #19     Jan 11, 2006
  10. It may be that the "fastest and safest" way to realize your goal will be to find a good trader and convince them to trade your account.

    Good luck with that.

    Steve
     
    #20     Jan 11, 2006