Why can't you scale up and be a billionaire?

Discussion in 'Trading' started by edfor, Nov 6, 2011.

  1. Daal

    Daal

    There reason you can't do this is because markets are more efficient the more liquid they are. Its very hard to compound 30% a year in $10B, on $100K is quite possible
     
    #21     Nov 7, 2011
  2. Picaso

    Picaso

    There's another reason.

    When you start trading, billions, millions, etc. are just numbers.

    As you start to actually make some serious money, your motivation to make much more decreases exponentially, whereas your fear of losing what you already have increases.

    While new traders may become more aggressive after a lucky run, most experienced (and burn/bitten) traders become more and more conservative as they net more money. Thus, the trader that was not so happy with making 40% (or more) a year ends up being really happy making 15% with lower (perceived) risk.

    And then compounding goes through the window.

    Or as someone put it: it takes courage to be a pig. :eek:
     
    #22     Nov 7, 2011
  3. Says who? I won't touch on stocks in general, but if you talk about the ES, watch it for a few days and see.

    There are people buying all the way up to the peak of the day, and people selling all the way down to the trough of the day.

    Volume done at the extremes may be lower than at other price points, but that is because the market moves away, not for lack of resting orders.
     
    #23     Nov 7, 2011
  4. u can if you want to, u can't if u can't.
    one's passion and vision correlates with success in life.
     
    #24     Nov 7, 2011
  5. Archin

    Archin

    If you're not making billions yet you're either not leveraged enough or not risking enough.
     
    #25     Nov 7, 2011
  6. bone

    bone

    Most traders have a tremendous amount of passion and vision - those characteristics alone do not translate into positive P&L. Honestly, you can have an extraordinary amount of passion and vision about an absolute horseshit irrational trading strategy that is doomed from the start. Wishing and wishing does not make it so.

    Trading is the ultimate accountability game.
     
    #26     Nov 7, 2011
  7. Its hard, but it could be done.

    With spreading the money into 10 trades on the same time and making trades with a duration of 1 to 3 months with risk/reward at least 1 : 1 to 1 : 2 !!! enter + exit in steps, day for day !!!

    Its very changelling and hard work !!!
    you would have only 3 trade sessions a year !!!

    But so long you do not affect the market with your big trades, you can manage this, with diversification on the different markets.

    Best would be to trade the currencies, there is the smallest reaction to bigger money.
     
    #27     Nov 7, 2011
  8. Archin

    Archin


    I've seen your webpage. Not that great some of your students have more than 1 losing trade. Unless this is in a multi year session that is unacceptable. I would work on less than 1 losing trade for every 89 winning. I've yet to have a losing trade and have something over 500 large trades so far. Why make a trade if it could end up losing, when making winning trades is so easy?
     
    #28     Nov 7, 2011
  9. Visaria

    Visaria

  10. bone

    bone

    Arch, I take your point. Cannot argue with that logic, quite frankly. We're more like 60 for 89, but you do make a convincing arguement.
     
    #30     Nov 7, 2011