A fairly new day trader is being held in his home at gun point. He sits by his trading station with a gunman directly behind him with a gun to the back of his head. His wife and daughter are being held in a cage on the basement. The trader and his family are rationed plenty of food and water every day. The trader has the latest computer with direct access to his broker⦠in other words, everything he needs for proper trading is there. The trader has $25k in his account. The task: The trader has up to 1 year to take that $25k and run it down to zero. He can short or long⦠scalp or swing. BUT⦠if when the time is up, and he still has any money left, he and his family will be executed. If his account hits $50k, his family is executed. Question: What most likely will happen to his account? Will it get smaller? Or will he make money? 97% (supposedly) fail at this taskâ¦.. To increase their account size. But if the rules are reversed, and the goal is to lose money, what will happen? He will experience stress every time he makes money⦠for it will bring the death of his family closer. So, if we have every fiber of our brain working to shrink the account, will our mind trip us up, and cause the exact reverse? By the way⦠for this scenario, the gunman discounts all transaction feesâ¦.. So the trader can not buy and sell repeatedly in an effort to shrink the account by feesâ¦. It must only be done by skill. Comments?
i'm pretty sure it wouldn't be too hard. just buy some far out of the money puts minutes before expiration....how hard is that?
Just go to a dead stock and pay a wild spread. Or just churn in and out, the comms alone will kill you.