Full time trading does it really pay

This is a discussion on Full time trading does it really pay within the General Trading Chat forums, part of the T2W Archive category; Originally Posted by meanreversion Ok, so all we need to do is divide your returns by 4 or 5 to ...

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Old Jan 16, 2011, 8:57pm   #106
 
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Re: Full time trading does it really pay

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Originally Posted by meanreversion View Post
Ok, so all we need to do is divide your returns by 4 or 5 to convert it to a form we understand, right?
In no other financial forum to which I belong has anyone ever mentioned that returns should not be segregated for reporting the results of a particular strategy.

The insistence that this is standard practice becomes more suspicious by the minute.
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Old Jan 16, 2011, 9:02pm   #107
 
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Re: Full time trading does it really pay

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Originally Posted by meanreversion View Post
It took about 10 pages to extract this information from him, it was truly painful.

The way he measures is thus.. if he receives $100 premium and the worst case outcome is -$1,000, but the spread expires worthless, he has made 10%.

His account size is of no relevance to the percentage return.
Extract something from me that you now state has no relevance. Brilliant. Cognitive dissonance reigns.

And if an equity investor invests $1,000 and sells for $1,100 and claims 10%, what then?

And the worst case is not $1,000, but $1,000 less the credit received. You insist on precision. I'm just helping you out.
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Old Jan 16, 2011, 9:11pm   #108
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Re: Full time trading does it really pay

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Extract something from me that you now state has no relevance. Brilliant. Cognitive dissonance reigns.

Erm, I'm not sure that's what he meant. Try reading it more carefully .

And if an equity investor invests $1,000 and sells for $1,100 and claims 10%, what then?

If his overall stock trading account is (for example) $100,000, he has made rather less than 10%, the way that everyone in the world views it apart from you.

And the worst case is not $1,000, but $1,000 less the credit received. You insist on precision. I'm just helping you out.
You have a major problem Howie, one you have made much worse through stubbornness. Now, I am not saying that you are a scammer. But the method of reporting returns that you want to use is frequently used by scammers to inflate their returns.

So they say, "average return is 5% per trade". Everyone reading that reads it as 5% of their account, rather than 5% of the 1% of the account that was risked on that trade, which is what it actually is.

Can you see the difference? And can you see why you get people's backs up when you pretend that you can't?

As Mean says, it took ages to make you admit that you weren't talking about returns as a percentage of your account. Why? Why not just admit it and move on?
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Old Jan 16, 2011, 9:37pm   #109
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Re: Full time trading does it really pay

Argh, I can see his replies in your post Mr P, I might have to add you to ignore as well
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Old Jan 16, 2011, 10:00pm   #110
 
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Re: Full time trading does it really pay

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Originally Posted by Pazienza View Post
You have a major problem Howie, one you have made much worse through stubbornness. Now, I am not saying that you are a scammer. But the method of reporting returns that you want to use is frequently used by scammers to inflate their returns.

So they say, "average return is 5% per trade". Everyone reading that reads it as 5% of their account, rather than 5% of the 1% of the account that was risked on that trade, which is what it actually is.

Can you see the difference? And can you see why you get people's backs up when you pretend that you can't?

As Mean says, it took ages to make you admit that you weren't talking about returns as a percentage of your account. Why? Why not just admit it and move on?
You are conflating two ideas. I hope not on purpose to draw me out again.

I have, from the start been clear about differentiating the trade profit, the number and variety of trades and the account growth. I got in trouble for that. I only resisted details regarding money management because I wanted to focus on trading spreads and forming Iron Condors. Whenever I got pulled into money management, the discussion ranged far and wide from the efficacy of my trading methods.

What I have resisted is bringing in other accounts that I have that use other strategies or are managed by others. In no other forum has this been an issue. No one has made a case that I can understand of why this is relevant. My suspicions of motives remain.
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Old Jan 16, 2011, 10:03pm   #111
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Re: Full time trading does it really pay

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Originally Posted by HowardCohodas View Post
You are conflating two ideas. I hope not on purpose to draw me out again.

I have, from the start been clear about differentiating the trade profit, the number and variety of trades and the account growth. I got in trouble for that. I only resisted details regarding money management because I wanted to focus on trading spreads and forming Iron Condors. Whenever I got pulled into money management, the discussion ranged far and wide from the efficacy of my trading methods.

What I have resisted is bringing in other accounts that I have that use other strategies or are managed by others. In no other forum has this been an issue. No one has made a case that I can understand of why this is relevant. My suspicions of motives remain.
I've tried my best to help you. I cannot do any more. If it makes you feel better, I think you are genuinely this inept - nobody in their right mind would continue the pretence.

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Old Jan 16, 2011, 10:36pm   #112
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Re: Full time trading does it really pay

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Originally Posted by HowardCohodas View Post
You are conflating two ideas. I hope not on purpose to draw me out again.

I have, from the start been clear about differentiating the trade profit, the number and variety of trades and the account growth. I got in trouble for that. I only resisted details regarding money management because I wanted to focus on trading spreads and forming Iron Condors. Whenever I got pulled into money management, the discussion ranged far and wide from the efficacy of my trading methods.

What I have resisted is bringing in other accounts that I have that use other strategies or are managed by others. In no other forum has this been an issue. No one has made a case that I can understand of why this is relevant. My suspicions of motives remain.
Why should you be different to everyone else in the world? What makes you right and the other 6bn wrong about return on the account.
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