100k-200k a year is good money no doubt about it, but there is way more money to be made out there and in order to cash in, you need to size in. I only trade about 50k-60k shares a day and Livingston is always trying to get me to step up my volume because I am very consistent and can do better. I see what he does on a monthly basis money wise but he must put up volume to make that. He is a great trader and can handle the added risk and I truly feel you can only make the big bucks by handling and working the bigger positions (at least in this market). The guy who trades 100 share lots and makes 100-200k a year, shame on him! Because if he's that good, he should be sizing up and really making the big money.
I agree with Mogul. Your argument does not make sense. In fact, traders who trade volume get better deals and pay less per share, especially those that pay on a per trade basis.
*********************************************** Just checked their website and almost fell off my chair laughing. It seems they have opened an office in Siberia. Maybe in addition to the 10% payout they could throw in some cheap vodka and a pair of mukluks. CH
I read the thread. With respect to making money in equities, I use the following general limits for the reasons indicated. The share limit you mention is true for me. I NEVER trade in one capital stream more then 100,000 shares (think 10 to 30 dollar range). Why? Liquidity is the reason. My rules come down to never trading in a day more than 10% of the cummulative volume of that day. My rule for entry and exit is to use blocks the size that are being traded. I use the high end of the block size. A typical 100,000 share entry requires about 20 actions to accumulate the 100,000 shares and the duration required to do this is the amount of time it takes for 1,000,000 cummulative shares traded that day starting ONLY after the stock has traded an amount of shares equal to the LOWEST amount of shares traded a series of days when the stock consistently keeps at that total days trading LOWEST volume. The # of blocks going in is about 20 and the # of blocks going out is about 30. I have posted an example of this where a third party observed prints at the request of a B person. The rough info was average in @ 11 average out @ 28 on the 100,000 shares in that particular stream of capital. A biotech corp. The general nature of trading is position trading and the hold is in the 6 to 8 day range and the net is about half of the H/L range ( I target (not predict but expect based on 5 prior consecutive moves within 6 months). Obviously this is anything but rocket science.
This is a silly arguement.... In business, a volume distributor will have bigger bills from the manufacturer compared to the mom and pop store. He will also have a lower mark up to support the volume... It's just a way of looking at things.. Michael B.
I believe if I have the same person in mind, that from reading his journal this individual simply doesn't want the headcahe of the larger losses he would have to take. It seems he has a comfort zone and prefers to stay in it and work it consistently. It is a good question. I remember reading an interview comparing the trading LBR did one day of SP futures along with a floor trader. This floor trader said he would not step up size because he was ok with how much he was making currently. I suppose if anyone has anything to share about increasing size I'd be curious, I have just finally stepped up size after plodding along 11 months, but it's still nowhere near things I have seen posted here!
200k on 100 share lot? he would need to make 2000 points a year. he'd also need to average 8 points a day and be right everyday. if he's so good, he should size up and make 10 times more.
Thats exactly my point, if this guy is so good and can make that much with taking so little risk, he would be a fool not to try and step up his game. Complacency in this business is unacceptable; if you have the talent and skills, there is no reason not to push the envelope. Why be content with making 200k. If you are trading 100 share lots and accomplishing a 200k year, wouldnt you think that maybe you could make even more if you took a little more risk? You obviously know what you are doing, why not try to improve? I guess, for my own mindset and personality, someone like this 100 share lot guy completely baffles me because he is obviously wasting his talents. I dont care how impressive his efficiency is, he should step up and make some serious dough. But, then again, not everyone thinks like me
Your mountain biking up a steep hill. Do you go up in a straight line? Perhaps the guy trades better on scalping terms weaving side to side... Michael B.