My account was merely a small one $5000.00 and went to $4000.00 and in last 4-5 months has been growing. Today the account is up as of today$48000.00 and that is after I withdraw $10k on Friday. I have had a good coach and I developed a good discipline, and that is all I can think about my success.
Yes I do have a restrict risk management. I only use 25% of my account at any time to achieve my goal. I will only blow my account if I do not use stops or get emotional.
I've had a good Nov. Mostly with S&P puts, gold puts, long nas/short S&P (gave back some last week though before being stopped out) and short oil which finally paid off big this week. Also done well with puts on several real estate stocks - big winners have been MBI, CFC, WCI. Trades I missed were the reverse carry trade, short financials, short wheat and today's bounce. At the moment my main position is a "Texas hedge" of Niederhoffer-like proportions short all the anti-dollar trades - oil, gold, euro, AUD/JPY etc. Unlike him however, I do actually have a stop (mostly by using options - gotta love cheap forex & gold vol). I just can't believe that Gisele Bundchen and every noob hedge fund manager is correct on the most crowded trade since long dotcoms in 2000. Whichever way, by Xmas I will either lose a used Porsche or make enough money to buy half a dozen condos in Miami.
That's bullshit. I am profitable this month - in fact, up about 10% in November but I find these generalized statement to be full of shit. Just because it came easy to you doesn't mean it's easy for everyone and for all kind of system.
Needless to say, I wasn't very happy. Still banked some, but missed the monster move. But what are you gonna do except move on to the next trade?
Ah, so you want a detailed, empirically provable axiom that will cover all traders and all situations? Feel free to attempt that, but your obsession with cow manure will probably serve as a fitting epitaph. Clearly I meant for the reader to infer that increased vol is a good thing for the vast majority of successful emini daytraders. Since you claim a non compounded annualized return of 250%, I would assume you agree.
How about a rule to buy back into positions if they start working after you exit? Whenever I have on a position expecting a major move, if I bail out and then the market starts going my way, I try to always get back in. You have to view any exit from a conviction trade as essentially an open trade in the other direction (i.e. if you are very bullish, then selling any longs should be treated as if they are new open short positions - so you must book profits and use a stop just as you would with a short position.) Basically whenever you exit a trade you believe in, write down the price or market action which would cause you to believe in your trade again - and then get back in.