100k per week - serious question

This is a discussion on 100k per week - serious question within the Forex forums, part of the Markets category; Originally Posted by Brabed It does for the one who believes it. Belief and trading does not go well together. ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Apr 15, 2010, 5:23pm   #29
Joined Dec 2008
Re: 100k per week - serious question

Quote:
Originally Posted by Brabed View Post
It does for the one who believes it.
Belief and trading does not go well together. 10% per week is not possible without significant risk. 10% per month is easy without leverage and I am perfectly happy with that because I know that when the bad days come(they always do), I won't be down 10-30% percent(just 1-3 percent).
jazzidee is offline Other (Please email T2W with details)   Reply With Quote
Thanks! The following members like this post: N Rothschild
Old Apr 15, 2010, 5:26pm   #30
 
Hoggums's Avatar
Joined Jan 2006
Re: 100k per week - serious question

Quote:
Originally Posted by Brabed View Post
Not necessarily, if one put 3% (a conservative risk) on the line on every trade with a 1:1 RR, then all it would take is 4 of 5 winning trades per week to hit 9 - 10%

Define 'high risk'- Risk means something different to the guy who trades with a 75 - 80% accuracy than it does to the trader who has a better chance of tossing a coin.
I challenge you to show me a trader with 1:1 RR and 80% success rate.

Pure fantasy.

This is why most newbies fail. Unrealistic expectations about their win/lose ratios and Risk/Reward.

10% per week is 14,100% per annum compounded. Cloud cookoo land, there's simply no point in aiming pie in the sky, it serves no purpose. You'll stay on track maybe for a few months if you're lucky but eventually you'll get caught because you have no expectation or plan for dealing with unfavourable market conditions.

My advice to beginners is not to concentrate on best case scenarios - but devote more time to worst case - base your trading plan around difficult trading conditions, because you are going to experience them. Concentrate on how you are going to survive these periods. Ignore them at your peril.
__________________
Hoggums

-----------------------------------------------------------------------------
Outside of a dog, a book is a man's best friend,
inside of a dog, it's too dark to read. -- G Marx.
Hoggums is offline   Reply With Quote
Old Apr 15, 2010, 5:44pm   #31
 
Adamus's Avatar
Joined Mar 2008
Re: 100k per week - serious question

Quote:
Originally Posted by meanreversion View Post
That should be $10,000 into $200mio (not $200bio) but whatever, it's not going to happen.
Have you traded gold in Zimbabwean dollars?
__________________
What matters most is how well you walk through the fire.
Adamus is offline   Reply With Quote
Old Apr 15, 2010, 5:53pm   #32
Joined Nov 2005
Re: 100k per week - serious question

Quote:
Originally Posted by jazzidee View Post
Belief and trading does not go well together.
In my opinion, couldn't be further from the truth.

I'm done, didn't mean to stoke the fire, I guess I was in the mood for healthy debate this morning. A few parting comments:

I am far from a newbie. I don't discuss my trading results on trading boards, it really doesn't matter as I'm not talking about what I've done, but rather about my belief that nothing is impossible. Again, our only limits are self-imposed. This is evident in the staunch criticism of my posts, you are defending your limiting beliefs. This comment is not to slight you in any way and I believe you are all probably really good traders.

I especially like the old argument that X% per X time period is simply 'impossible', because if you did that you'd end up with $XXXXXX(big number). SO??!?? The end result does not negate the means.

Take care, good trading all and I hope I did not offend anyone because that was not my intent.
Brabed is offline   Reply With Quote
Old Apr 15, 2010, 10:16pm   #33
Joined Sep 2008
Re: 100k per week - serious question

Lets take a different approach. I dont know anyone who continually compounds their winnings to eternity. Thats just as silly and any seasoned home gamer would remove money as a safeguard. Also most traders who use trading as sole or primary income remove their winnings or good portion thereof each week or month. So 10% per week would never actually reach 14,100% compounded annually.

Now, 10% is achievable on a per week basis. A good scalper can make this. The caveat here is highly successful scalping takes so much time, energy, and emotion to be able to continue week after week that traders burn out well before their time. I've seen it happen to great traders and I very nearly sent myself into a death spiral of sorts many years ago. So while it's possible from a a trading standpoint, it's not really probable from a human standpoint.
wackypete2 is offline   Reply With Quote
Thanks! The following members like this post: leovirgo , elitejets
Old Apr 16, 2010, 9:16am   #34
Joined Jan 2009
Re: 100k per week - serious question

Quote:
Originally Posted by wackypete2 View Post
Lets take a different approach. I dont know anyone who continually compounds their winnings to eternity. Thats just as silly and any seasoned home gamer would remove money as a safeguard. Also most traders who use trading as sole or primary income remove their winnings or good portion thereof each week or month. So 10% per week would never actually reach 14,100% compounded annually.

Now, 10% is achievable on a per week basis. A good scalper can make this. The caveat here is highly successful scalping takes so much time, energy, and emotion to be able to continue week after week that traders burn out well before their time. I've seen it happen to great traders and I very nearly sent myself into a death spiral of sorts many years ago. So while it's possible from a a trading standpoint, it's not really probable from a human standpoint.
Good post.

Actually, on reflection, this thread has stimulated some lively debate and I understand where the threadstarter is going with his idea on self-imposed limitations.

As Ed Seykota said in that book which we've all read "you always get what you want from the market". I find Seykota's utterings just a little too clever for my liking, but this one has some truth in it.

As we sit behind our keyboards, we might SAY that we dream about running a hedge fund and making 10s or 100s of millions, but we don't REALLY believe it, do we. A bit like those people on Who wants to be a Millionaire who get to 32,000 and take it as it's equal to a nice car and a holiday.. they don't really want to be millionaires.

That's why I find the concept of profit targets a bit strange, i.e. I risk 1 unit to make 3, or a 3R multiple as Van Tharp calls it. Why not utilise trailing stops and once in a while make 10R.. it can happen. To impose a risk/reward ratio on the market seems flawed.. if nothing else, it will lead to scenarios such as "well if the market gets to 2.95R then starts to retrace, I will take off half the position" and so on. Nonetheless, there are many different styles in the market, and everyone needs to do what they think works.

I think the majority of us struggle with eternal self-doubt and perhaps this is what holds us back. My view is that this is a long term thing, don't expect riches overnight, just stick with the plan and hopefully one day the money will come.
meanreversion is offline   Reply With Quote
Old Apr 16, 2010, 11:27am   #35
 
bedsit's Avatar
Joined Sep 2009
Re: 100k per week - serious question

bedsit started this thread T2W - trade to win
A nice name (better than T2L)

When I mentioned importance of a positive expectancy I didn't mean for a trader to go mad with unrealistic goals.

Personally I have a set of rules: If I make more than 10% a week I take a break for at least 2 days. Similarly if I lose more than 5% a week I take a break.
Risk I take per trade is 1 - 2% max. Also one of my rules is to stop trading for the rest of the day if I have 2 losses that day.
This way I minimise stress and know about the risk involved. I think that's the only thing a trader can control (no control over price movement available as yet)

I asked about big trades (and accounts) to get some idea about trade sizes. It seems that 10 lots (1m trade) would be a reasonable amount. I should think that 100 lots (10m trade) is different (one kind member posted a record of trade sizes and there were not many trades there bigger than 10m).
So in that case it would be easier to make 10% on 100k account (or smaller one) than on 1m account IMO.
bedsit is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
sub 100k SIPP, CFD's, Shares, Funds mspringham First Steps 5 May 6, 2011 3:09pm
How would you manage 100k? GladiatorX General Trading Chat 24 Sep 10, 2009 10:11am
Journey To 100K Before December 2007! Theta2000 Trading Journals 21 Nov 8, 2007 4:34pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)