Young trader, looking for advice regarding future

deucy28 · Sep 22, 2013

Quote from deucy28:

You are probably referring to this piece of art:

http://www.elitetrader.com/vb/showthread.php?s=&postid=3446252#post3446252

I researched to find this for you, Aew, thinking it may move the ball for you.

You will see this, I quote him:

Trading is a Career Professional where ones need a Higher Education. Those that took that path of Higher Education and went on to work in the institutional are in Heaven (Holy Grail)

Those who decide not to take Higher Education path, but rather subscribed 3rd party educational/signal vendors they will be rich quick are in hell. They will stay in the Ghettos
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This is worrisome, perhaps, for you Awe (from the same thread):

http://www.elitetrader.com/vb/showthread.php?s=&postid=3788221#post3788221

At the very least, possibly compel you to look over the horizon sooner than later to know what you may be facing. I'd hate for you to waste your time if this true. Would love others to comment !

blakpacman · Sep 22, 2013

Quote from deucy28:

This is worrisome, perhaps, for you Awe (from the same thread):

http://www.elitetrader.com/vb/showthread.php?s=&postid=3788221#post3788221

At the very least, possibly compel you to look over the horizon sooner than later to know what you may be facing. I'd hate for you to waste your time if this true. Would love others to comment !
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I think blueturtle is FOS.

short&naked · Sep 22, 2013

Quote from Aew:

Hello EliteTrader members,

I made a thread on another trading forum, and was advised by a member to post here, as this site may prove to possess more qualified people within the profession.

One area people seem to be concerned about, is my lack of formal education. I was under the impression, that this profession (trading and hedge fund management) was more about performance and providing results, rather than having a piece of paper.

I am a profitable trader, who is in the process of building a portfolio of live statements as proof of my results. Statistically, these results are an average of 15% ROI per month, risking 1% of capital per trade. I thought this is what mattered in the industry, and is what would dictate my success, but people seem to think otherwise.

To put everything in context, I will attach my full post from this trading forum. I thoroughly appreciate any advice you could take the time to pass onto me. Thank you.

" I am 18 years of age. I became immersed in the world of trading/financial markets a couple of years ago. I instantly fell in love with it.

Ever since, I have had a burning desire to become the best, and excel beyond all others in this field.

Some may call what I have an obsession, but what they think is irrelevant. People can call it what they want. I have a passion for this and I plan to pursue it to the fullest.

The further I went down the rabbit hole, the more I discovered my passion for this profession, and my insatiable thirst to succeed within it.

I dropped out of High school, and decided to devote all of my time to becoming the best.

Ever since, I have been studying (whether it be literature or the charts) for over 15 hours a day, without exception. In fact, some days I'd lose track of time and forget to sleep.

Mind you, I live in Australia, and hence, London/US open is later in the day for me (London open 5PM, NY open 10PM).

Where do I see myself ? I will open a Hedge Fund and I will win ( Do not confuse this statement with a destructive EGO, as undoubtedly, some of you may point out).

I have discovered, tested, and fine-tuned a profitable system to suit my personality, and have begun building 6 months (Or however long it may take) worth of live statements to prove my reliability and profitability, to potential investors. This will then lead to the acquisition of investor funds, and the beginning of building my business.

My question is to those of you who have experience in this profession or in this field. What do you suggest I do, in terms of specifics, to ensure I get to the top? I will do anything that is required of me to achieve this level of success.

My strengths are in Technical Analysis, but I have very little Fundamental Analysis knowledge. Perhaps this would be a field to study in order to enhance my results?

The reason I have little to no Fundamental Analysis knowledge, is due to the fact that I do not trade the news (I trade the reaction to the news). But I make no judgement upon Fundamental Analysis. I am not wise, nor experienced enough to know its potential benefits, which is another reason I am making this thread.

As I have said, I am willing to work as hard as it takes. 15+ hours a day of study is a given for me. If you tell me that I need to go days without sleep, then I will do it without question. This is thoroughly enjoyable for me, and I do not see it as work.

Note: My focus is majorly in building my own business. Getting into investment banking, or working for someone else in a proprietary trading environment, is not the direction I want to take myself in. I want to focus all of my energy on my own business, so that I may compete against these firms/investment banks, not work with them. "
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Then grab yourself an account over at http://myfxbook.com/
fire up that bad boy and show us the pips.

If you can replicate in a live account what you are claiming above, you will not have to worry about building a business / getting clients, etc. Simple as that.

deucy28 · Sep 22, 2013

Quote from blakpacman:

I think blueturtle is FOS.
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I suspect that does not mean Forthright Outstanding Smart

gaj · Sep 22, 2013

aew - you stated something about your work ethic, will work harder than everyone else, etc.

i am not doubting your belief in that statement for a second.

however, i have heard virtually the exact same paragraph from other people. if you're going into a corporate environment and say at your interview "i will work harder than everyone else", they may take you up on the offer. but understand that they've had 10 other people coming in for that job who are saying the exact same thing, and believe it just as much as you do.

i readily admit i would not, did not, and do not work harder than everyone else.

newwurldmn · Sep 22, 2013

Quote from Aew:

Thank your for taking the time to respond to my thread. I appreciate it.

It seems there are a lot of people who are skeptical, and choose to treat me as any other 18 year old, which is completely understandable and anticipated.

Now, regarding your criticism regarding my returns and money/risk management.

I fail to see how 15% a month is unstable. I do not put limitations on my profits. The only limitations I have are those that the market sets forth.

In other words, I only take valid setups (in relation to my strategy), and never go "searching" for a trade, when it is not there. If the market does not give me a valid, high probability setup for me to trade, then it is simple, I will NOT trade.

If, however, the market presents me with valid, high probability setups, I will take them. It is just that simple.

CAPITAL PRESERVATION IS #1.

Regarding my risk and money management.

I only risk 1% of my capital per trade. You will begin to understand why I do this momentarily.

I only take high probability setups. I have a very good win rate. I do not know the exact %, but it has been good enough to not give me any significant DD, beyond a 3-4%, and that is rare.

My Reward:risk for every trade must be at least 3:1, or I will not take it.

It is not uncommon for me to have trades that produce 10:1 Reward:risk ratio.

With this kind of R:R, hit rate, and risk per trade, the chances of going bust are extremely low, as long as psychology stays in check. The only way I can go bust is if I fail psychologically, which Is something I believe I continue to control very well.

I am confident in my proven statistical edge, and that is why, regardless of a few losing trades here and there, I do not care. In the end, I will end up positive. Mark Douglas (Author of "Trading in the Zone") explains this concept extremely well. In fact, better than anyone else I have ever witnessed.

This is a psychological game. Its as simple as that.
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How do you know you have a statistical edge?
To prove a statistical edge in six months is unheard of.

blakpacman · Sep 22, 2013

Quote from deucy28:
I suspect that does not mean Forthright Outstanding Smart
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No, it's the unholy excrement that stinks badly.

Quote from shooter:
emg would have a field day in this thread.
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Getting ready to grab my popcorn.

smallStops · Sep 22, 2013

Quote from gaj:

aew - ... say "i will work harder than everyone else", they may take you up on the offer. but understand that they've had 10 other people coming in for that job who are saying the exact same thing, and believe it just as much as you do.

i readily admit i would not, did not, and do not work harder than everyone else.
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Not long ago, one trainee died of overwork.

Alphagod · Sep 25, 2013

Do not waste your life in school just because people tell you to; education and school are two different things. Follow your heart.

TraDaToR · Sep 25, 2013

Quote from drownpruf:

I made $600k the following year and bought a H1 Hummer and a townhouse. So yeah, you tell me about my edge, I am all ears, Jr. IIRC I spent ~200k on my AMEX Platinum that year. 100% organic growth. The last asshole (one of the biggest earners here) that called BS on that statement lost that bet. I sent him the AMEX card. I was 22yo.

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Impressive. I know a grain trader which is almost in the same place when it comes to becoming wealthy ultra young. I believe you by the way, just because of the general quality of your posts. Has it continued the same way all your career? I am interested to know if people who become successful really young sometimes blow up later or if it is just smooth sailing once you have a big money cushion...

OP, I am sorry but your posts totally lacks content. It's just motivational BS and bravado. I believe I have been quite successful at trading by identifying a few edges( the same as everybody...) and then devoting all my time to doubting my capacities, judgement and indentifying black swans possibilities. I believe I succeeded at trading because I lack confidence in myself( so I only trade the very best setups ).